Charge on property?

[malovitt]

I'm asking this for a friend who is extremely worried at the moment.
Her father died some months ago, without making a will. Mother still alive and living in matrimonial home.

Friend trying to sort out probate but has found some sort of letter in father's papers indicating that he owed someone money (failed business deal?) and that they have put a charge on his half of the house. She can't trace the people who wrote the letter but it looks official. How can she find out if this is true?

I've looked on the Land Registry website and it appears that she can find out there if there is a charge on the property, but not the amount owing?

To put a charge on a property, would there have had to be a CCJ first? If so, where can we find a record of that?

She really doesn't want her mother to know anything about this as she's pretty frail and I don't want to send her on a wild goose chase, so any advice really appreciated.

I think it might be recorded on Land Registry or perhaps a document is held with the house deeds.

I'm a bit rusty on this but the land registry should have details of what charges are on the property. If the property was mortgaged the mortgage company would also have had to agree to any second charge on the property.

A CCJ is unlikely to have forced a second charge ime. More likely a secured loan was taken out and secured on the property. There may be nothing to show for that money now if the business failed.

Are there any payments going out of the account that could be loan repayments? If it was a loan and it was secured on a joint asset held as a joint tenancy both parties would have to agree to the loan and evidence collected to show the party who has no benefit from the loan understands the risk. There is some case law on this, O'Brien vs Barclays I think it was.

It will state on the Land Registry if there is a charge, but apparently not the amount.
I want to know how we can find out the amount of the charge.

Sorry should have said a CCJ is less likely than a second secured debt. If a charging order was obtained there will be a record. But more likely to be a secured debt arrangement IM (limited) E.

It will tell you who the charge is to and then you contact them. Probably a mortgage company.

There is a mortgage on the property. Didn't think about checking with the mortgage company.
Mother would never have agreed to any secured loan. It looks like a joint business deal where the father didn't pay his share?
Will pay the £4 to Land Registry and see what comes up.

Can these people insist that the house is sold?

Well if there's a mortgage the mortgage company have to consent to a second charge. That second charge if, it's for a business loan only benefiting one of the property owners, must be shown to have had the informed consent of both parties. See case here specifically O'Briens.

However, people do all sorts of things you don't think they would and something as simple as a separate interview with the wife and paperwork evidencing the discussion may be enough to show there was no undue influence.

If there's no evidence of a second charge with the Land Registry then I cannot see how the proper legal process can have been followed through so there might be no second charge any way. £4 is a small price to pay to find out.

That case makes interesting reading.
My friend's dad was quite domineering so it is quite possible that his wife might have signed something without fully understanding the implications.

Thanks for your help.

Just downloaded a copy of the register - it shows (under part B, the Proprietorship Register) a Caution in favour of the people named in the letter, c/o a solicitors co, dated 12 years ago.

Under part C, the charges register, it just shows the Building Society details with the date her parents bought the house.

Is a caution not a proper charge, then?

It will most likely be to protect a charging order made within enforcement proceedings at court. If a judgment is made against a debtor, the creditor can apply to court for a charging order. Since the charging order was made he debt might have been settled. They'll need to contact the creditor's solicitors and find out what the state of play is, or contact the creditors. The father's records might provide a clue as well.