Question for Julian Sampson

[smr]

Hi
I have a creditor whom I owe just over 3K. They have passed the debt to a collection agency who have said they will start bankruptcy proceedings if I don't agree to pay. I have offered to pay £75.00 per month and they have agreed this. However they have also stated that in addition to the £75.00 they want an irrivocable letter of undertaking from my solicitor stating that upon sale of my property the debt will be fully discharged before any proceeds are handed over to me. I don't have a problem doing this, however, if I ask my solicitor to do this will she not think it odd, or is it a standard letter ? The solicitor is a friend as well. Or can I ask any solictor to do a letter to this effect?
Hope you can advise
Sharon

[mikebdomain]

Hi smr - sorry for butting in I know the question is for Julian and I'm sure he will answer shortly. But I just have to say what a strange request for this creditor to make.

If they want to put this sort of arrangement in place it is very easy to do with your permission. All they have to do is fill in a land registry RX1, ask you to sign it, pay the fee and put a restriction on your property – fairly standard practice.


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LEYBRIDGE LIMITED
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Specialising in adverse credit.

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[smr]

Hi
Thanks Mike - no apology needed, butting is the name of the game on this forum - all help greatly appreciated.
Where can I get this form from - presumably the Land Registry site ?
Sharon

[mikebdomain]

You can find the form on the following link;

http://www.landregistry.gov.uk/assets/l ... ts/rx1.pdf

If you need to find your property title let me know and I will find it for you - send an email to mike@leybridge.co.uk

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker & Mortgage packager
Specialising in adverse credit.

Firm FSA No:313790
Personal FSA No:MJB01557

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[JulianSampson]

Morning- sorry been away from the office!

I have just replied to Sharon but this is a tactic usually employed by HFC and their law firm Weightmans. I have had several very big (reporting-style) run-ins with them over the last few weeks over their tactics which I regard as utterly contrary to both their FSA obligations and their professional repute obligations with the Law Society.

I have always categorically rejected their request for an undertaking when, as Mike says, there is a very simple method for securing an Agreed Notice at HM Land Registry (see form AN1 or as an alternative form UN1).



Julian Sampson
Solicitor
Wright & Wright LLP
www.wrightandwright.com
See my article in Clean Slate magazine

[smr]

Hi Julian
Received your reply. I am going to ring them now and see what they say. The creditor is not one of the usual financial institutions but a recovery agency on behalf of a private landlord. I had a small business that did not do well this year and the debt is for the non-payment of rent.
Thanks both for your help.
Sharon

[mikebdomain]

Hi Julian,

I have always used the RX1 to place restrictions in these circumstances. Do you feel a AN1 or UN1 is more appropriate?

Sharon

I got your email and will be sorting out the search for you shortly

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker & Mortgage packager
Specialising in adverse credit.

Firm FSA No:313790
Personal FSA No:MJB01557

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[JulianSampson]

Since the Land Reg Act 2003 a Restriction is now rather a blunt instrument in much the same way a Caution was. As you probably know there are several types of form Restriction and technically they should only be registered if the debt touches and concerns the land itself. With a normal debt the only way (or so the argument goes) that this could be is if you have a Charging Order whereby the Court attaches the debt to the property. If you are getting them through then keep going but if I acted for a debtor I would certainly contest the registration unless you had the court Order behind you.

A Unilateral or Agreed Notice are often used by the secured loan companies to register and, where you have Client consent, I would tend to favour these.

Julian Sampson
Solicitor
Wright & Wright LLP
www.wrightandwright.com
See my article in Clean Slate magazine

[mikebdomain]

Well you learn something every day.

I also run a loan company and have been using RX1’s without a problem or question for the last three years. I think I will start to look at other options. Thank you for the information and advice.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker & Mortgage packager
Specialising in adverse credit.

Firm FSA No:313790
Personal FSA No:MJB01557

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[JulianSampson]

if you run a loan company you need to be using a simple Form CH1 (wording is very easy to sort but I can give you a hand), a loan agreement (for the body of the terms) and the CH1 can incorporate an RX1 style restriction as well for double protection. We do these for bridging companies often...

Julian Sampson
Solicitor
Wright & Wright LLP
www.wrightandwright.com
See my article in Clean Slate magazine

[mikebdomain]

Thanks again Julian, I have been sending out our standard CCA, along with T&Cs and an RX1 for signatures. I have looked at the CH1 and it seems simple enough and will save a bit of messing around. Thanks again – I am just off to kick my advising solicitor in the proverbial.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker & Mortgage packager
Specialising in adverse credit.

Firm FSA No:313790
Personal FSA No:MJB01557

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[smr]

Guys
Glad I raised the question - it would seem Mike has also benefited from this point.
Mike - got your email, thanks.
Sharon

[mikebdomain]

Your right Sharon - very useful information indeed, this will save my processors hours of work.

I have just spoken to my sols and he says “oh yea, that would be better, to be honest we do not deal with a lot of secure charges”

makes you wonder....


FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker & Mortgage packager
Specialising in adverse credit.

Firm FSA No:313790
Personal FSA No:MJB01557

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[JulianSampson]

oh dear!

Julian Sampson
Solicitor
Wright & Wright LLP
www.wrightandwright.com
See my article in Clean Slate magazine

[Adam Davies]

Hope your going to send Mike a bill Julian !!
Regards

Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp