How long does an RX1 last for?

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ray126
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by ray126 » Mon Mar 05, 2018 11:00 am
I started an IVA in January 2012, which was terminated around 8 months later, because I was unable to make the payments, as my sickness prevented me from working. Since then, a close relative has given me around £10,000 to pay into my mortgage, to prevent repossession. It's now got to a point where my relative can no longer give me any money, and I have no option but to try and sell my home, and any profit will be used to rent somewhere else to live. However, the profits will be minimal, as my home is on a shared ownership, and I only own 25%.

I still owe around £20,000 on those debts, and I've only been making small token payments for the last few years (directly to the debt collectors). I've just remembered that the IVA people had an RX1 on my home, so that they will be notified if I try to sell it. I'm really worried at the moment, so hoping to get answers to the following questions;

1) How long does the RX1 last for? How can I check if it's still there? Can I get it removed?

2) If the IVA people find out that I'm selling my home, what powers do they have to take any of the profits? Can I prevent them from taking the profits? Is there a risk that they will force me into bankruptcy?

3) If there is no way to prevent the IVA people from taking the profits, can I at least recover the money that belongs to my relative? The first payment my relative made was for £5000, and this was agreed by a judge at a repossession hearing. However, the mortgage lender told me that the payment would have to come from my own bank account, because if it came from my relative's account, they would 'have an interest' in the property. If needed, my bank statements can prove all of the money that came from my relative.

Thank you very much for your help.
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Foggy
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by Foggy » Mon Mar 05, 2018 12:56 pm
The RX1 restriction will remain until such time as it is removed. Your former IP mighthave removed it. You can get a copy of your title deeds from Land Registry to see if it is still there. If the RX1 is still there it does not give the creditors any powers, but no-one will buy the house with it in place. Whether the relative can have any of the proceeds will depend on if you can convince the IP of your relative's interest. I would argue that the court hearing gave the relative an interest regardless of how the money was actually transferred and that the lender was trying to confuse you at the time.

This is what Land Registry told me a while ago:

To withdraw a restriction H M Land Registry would normally expect to receive a completed form RX4 by the person or company that has the benefit of the said restriction. If the beneficiary is unable to provide this RX4 then this form should be completed by whomever has inherited the benefit of the restriction and appropriate evidence of devolution of title lodged as part of the application. This evidence should show a clear link between the beneficiary named on the title register and the applicant that has completed form RX4.

If restriction is not withdrawn, then an application would need to be made for its cancellation. Cancellation is the term used in rule 97 of the Land Registration Rules 2003 to refer to an application to cancel a restriction that is no longer required.

Any person may apply to cancel a restriction. The application must be made in form RX3 and no fee is payable.

We will cancel the restriction if we are satisfied that the restriction is no longer required. The application must be accompanied by evidence to show that this is the case. If anyone is referred to in the restriction and if an address for service is listed for that person, we will usually notify them of the application and give them an opportunity to object to the application before canceling the restriction.


Practice Guide 19 provides further information on notices, restrictions and the protection of third party interests in the register.
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ray126
Posts: 2
by ray126 » Tue Mar 06, 2018 9:18 pm
Foggy wrote:
The RX1 restriction will remain until such time as it is removed. Your former IP mighthave removed it. You can get a copy of your title deeds from Land Registry to see if it is still there. If the RX1 is still there it does not give the creditors any powers, but no-one will buy the house with it in place. Whether the relative can have any of the proceeds will depend on if you can convince the IP of your relative's interest. I would argue that the court hearing gave the relative an interest regardless of how the money was actually transferred and that the lender was trying to confuse you at the time.
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OK, thanks for this information - that's very helpful.
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