Document Actions
In the case of a property with a mortgage and second charge, does the first charge holder have to give permission for re-possession or can independent action by the second charge holder result in re-possession?
My daughter and her husband jointly own a property with a mortgage and a second charge on it. The property is in negative equity and they both have significant other unsecured debts. The second charge company are pursuing for re-possession and a Court date has been fixed. Does the first charge holder have to give permission for re-possession or can independent action by the second charge holder result in re-possession? The first charge mortgage holder has agreed a rolling repayment of their mortgage with them both and they are keeping to this plan so far with any arrears being negotiated for a later agreement. What defence do they have against the second charge action?
The second charge holder can re-possess without recourse to the first charge holder. The best way to stop them doing so is to obtain an up-to-date redemption figure from the first charge holder and valuation of the property. If you can show the second chargeholder that re-possession will not result in them receiving any payment, but will incur the (considerable) costs of sale, they may take a commercial view and sit and wait for things to get better.
In addition, if the agreement relating to the second charge pre-dates 6/4/07 and was Consumer Credit Act regulated (i.e less than £25,000) we can arrange a free check for you to determine whether (as is often the case) the agreement is defective and consequently unenforceable.
We hope this information answers your question and that you found our free service fast, comprehensive and useful. We answer questions on any legal matter so please tell anyone else who you think might benefit from our free assistance.
It would also be a good idea to bookmark http://www.lawanswers.co.uk in case you need free advice on any other legal question.
Please come back to us if you have any other legal matter we can assist with in future.
Important! Ask your own free questions... Questions are answered accurately at the time they are posted but the law can change or your circumstances may differ in an important but not obvious way from those mentioned. For fast, free and up-to-date personal legal advice direct to your inbox about your own individual case ask Law Answers your own free legal question.
