unsecured loan (previously secured)

felicia777 | 19:29 Fri 07th Mar 2008 | Law

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Can a creditor with a secured charge on a previously owned property, put a charge on existing property for the debt outstanding, plus six years interest. Charge on previous property over 18 years old.

Wills Trusts Probate Tax

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themas

I don't see why not - but if the previous house was sold a long time ago and they have waited till now to try to get a charge on the new house the Court may ask why. If the previous house has just been sold & a new one bought & they have more or less straight away applied for a charge then they are not likely to have a problem. However, there is nothing to stop you objecting at the Court hearing if you wish to. The judge will decide.

It is as well to object anyway & try to get a condition on the charging order under which the creditor can't apply for an order for sale so long as you pay a fixed amount (determined based on your financial circumstances) each month.

felicia777

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Thank you so much for your response to my question. May I add that the previous property(which held the charge) was repossessed by the building society in 1990, and unfortunately due to illness and family pressures, the secured loan went into arrears, but they did not try and trace us (joint names) until we registered with this existing property in 2007.

Felicia777

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