Enforcing charge agreement through bankruptcy

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    Enforcing charge agreement through bankruptcy

    I have previously explained my claim for almost £40,000 against the owner of the head lease in my building, for emergency structural repairs, loss of rent and damages.
    After refusing to agree to arbitration for many months, the head lessee's solicitor has now agreed in principle to register a charge against the head lease, to settle my claim.
    However, the lessor has lived in the property with her daughter for many years and she could pass the property on to her daughter. I suspect that she believes that I will therefore be unable to enforce the charge.
    I anticipate that I should insist on a time limit for the sale of the property as a condition of the agreement, and a standard 8% per annum on the amount. If she refuses this offer, I would hope that if the case goes to court the judge would grant a summary judgment.
    However, are there any special circumstances which would allow me to have the property sold in order to obtain the amount of the charge.

    #2
    When a charge is registered against the property title at Land Registry, it should block any transfer until the charge is withdrawn. Have you checked with Land Registry ?

    Comment


      #3
      Originally posted by BoruB View Post
      I have previously explained my claim for almost £40,000 against the owner of the head lease in my building, for emergency structural repairs, loss of rent and damages.
      [...]
      However, the lessor has lived in the property with her daughter for many years and she could pass the property on to her daughter. I suspect that she believes that I will therefore be unable to enforce the charge.
      Somehow those two don't add up to me?

      You have a claim against the head lessor, so presumably you're the head lessee and your losses were due to you not being able to profit under your sub lease?

      How can the head lessor live in the property though, they have given away possession of it through the lease?

      Or are you talking about another property that the same person owns? In that case, you can get a charging order against that property. But remember that a charging order doesn't mean you get your money back. It simply means that the charged property cannot be transferred before the order is satisfied. So if the lessor simply continues to own the property you won't see any money - unless you ask for an order of sale from the court under part 73 of the CPR.

      Comment


        #4
        Don't bother or even contemplate putting a charge on the property !

        If the leaseholder lives for the next 40 years you will never get your money back to enjoy.

        Take the freeholder to court, via initialy going to the F.T.T. ( was the L.V.T. ) and determine that the lease was not upheld, and you paid out £ 40000, and you want it back.

        Simples.

        Comment


          #5
          Presumably the OP has considered putting a charge onto the property because the head lessor doesn't have any other assets?

          Otherwise I agree with ram, other enforcement methods will normally be more suitable to get money back quickly - but a charging order does have its benefits because once it is on the property there is no hiding of assets any more. And as I mentioned above, an order for sale of the asset can also be sought, which normally gives the claimant the rights to pursue the sale. This is a very beneficial position to be in...

          So it all depends - as always

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