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Charge against the property by Local Authority [LA] - is it interim or final?

6 replies

needabiggerhouse · 11/06/2020 21:56

The LA put a charge against the property jointly owned by me and Father in respect of care home fees back in 2007. I disputed this as I fought for NHS Continuing Care. The LA sent 3 x B136(HSS) forms [applications to register a restriction to the property]; one addressed to my deceased Mother, one to my Father who was in the care home and one to myself living 200 miles away! despite being aware of the circumstances so I missed the window of opportunity to object and the charge was entered onto the Land Registry. The LR provided me with a copy of Form RX1 [also an application to enter a restriction] but I have now been advised that not all creditors will apply for a final order and the court and reference would normally appear in the register entry if that was the case.
This information is missing. Does this mean the application is still interim? And if it has not been finalised does it mean the application to enter a restriction is not enforceable?
I have scoured the net without success - am hoping someone will be able to assist.
Thank you

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jellybean85 · 11/06/2020 21:59

It's a few years since I dealt with these but they always ended up with the LA being paid either directly or after court. If they can prove care home fees were owed they will likely get the money. The LA will have a dept that deals with this, likely adult
Social care finance or a legal team perhaps, contact them and see what they say before you spend loads on legal fees.

needabiggerhouse · 11/06/2020 23:37

Hi jellybean85
Thanks for your response.
Would you be able to elaborate please in relation to 'either direct or after court'?
Are you saying this would go to court?
The last time the finance dept. was in contact with me was in 2009.
The last contact I had with the LA was in 2015 when I registered yet another appeal.
I did a SAR with the LA last year and they didn't disclose any bills or anything owing.
I can't establish whether the application for a restriction remains an interim or whether a final charging order was made.
It's all rather messy.

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jellybean85 · 12/06/2020 07:02

Sorry, was a bit distracted when I was typing I meant either you would pay what was owing directly, finding out what they think was owed And then settling up, or yes legal action. From what you're saying they have successfully registered a charge or caution on the title. This means you won't be able to sell without getting their consent to get that removed.

I know it seems like they might have forgotten because it's been 10 years but that's often how these things are let. Rather than force family members to sell a property they may be living in the LA secured its debt by way of a charge and then waits until the property is sold.

The legislation has actually changed since 2009 and it's now all done by way of a deferred charge agreement which is signed. At a guess it sounds like this was registered under the old HASSASSA rules.

needabiggerhouse · 12/06/2020 12:33

Thanks Jellybean85
Is the clock right on the system? Reply at 0244 hours???

  1. The LA has made an application RX1 for a restriction.
  2. The restriction is 'No disposition of the registered estate is to be completed by registration without a certificate signed by the applicant or his conveyancer that written notice of the disposition was given to XX Council at P.O. Box XX, STREET, TOWN, POSTCODE, being the person with the benefit of a Charge under Section 22 of the Health and Social Services and Social Security Adjudications Act 1983'.
3.This was made under Section B. Proprietorship Register.
  1. From the web I found this ...'4. Form K (LRA, section 42(4); Land Registration Rules 2003, r.93(k)), specifying that no disposition is to be made without the holder of the charging order being notified. It is commonly considered that this form of protection is completely useless.'
  2. I'm not sure if this is a Restriction made on Form K as the land registry document doesn't specify. If it is - then does this mean the restriction has no teeth and isn't enforceable as the council did not get a final charging order? Or when they are notified I intend to sell is that when they will apply for a charging order?
  3. Charges Register. There is an entry in there relating to when we bought our council house [parents had lived in it 35 years by then] it names the owners and says 'contains restrictive covenants' then NOTE: ORIGINAL FILED. Not sure if this refers to the original clause [now cleared as it related to having to pay back the discount if we sold within a certain tie period?] OR whether this is the council's new entry? If so, shouldn't it have a date in ( brackets ) same as the restriction applied for by the council in Part B which included the date.
  4. Yes this dates back to 2007 - I didn't enter into a deferred agreement as believed my Father was entitled to NHS CC hence they went the charge route [without telling me].
  5. I did a SAR last year - didn't reveal anything in terms of invoicing etc. I have no idea what I owe, whether interest would apply. The last time the Finance people wrote to me was in 2009 when I advised I was continuing NHS CC claim. I note new legislation requires for regular contact/update but as this predates it - not sure what the position is. Surely they should have maintained contact.
  6. Finally, I have seen some advice on the web which suggests a claim is dropped after 12 years. That would be nice but I guess that's not the case.

Apologies for the long post - I know there's a desire to make the law more accessible but this seems overly complicated.
Thank you

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jellybean85 · 12/06/2020 15:54

No idea about the time! It shows as this morning about 9:44 from mine!

Basically because land registry are aware and have noted it you can't round selling without addressing the issues. It was a messy piece of legislation and to be frank there are all sorts of loopholes and conditions that mean it may or not be enforceable. If I remember rightly there was a an exemption from the usual statutory limitations on making a claim because the idea was to never turf someone out of their home by force but also securing tax payer money. Same goes for the lack of contact, it's generally considered distasteful to hound living relatives about care home fees unless necessary so most took an approach of waiting quietly for the sale and the debt to be repaid.

Contact the council now and ask for records relating to the property and explain the nature of the query, it might not come up in a SAR for you because it's not a debt in your name and lots of correspondence etc is deleted after 6 years..

They should have the original documents relating to the charge though, it's possible CC was granted and someone just forgot to remove the restriction. Human error happens everywhere

needabiggerhouse · 12/06/2020 18:48

Thanks Jellybean for your response. Much appreciated.

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