Brendan Hughes

Moved here in Jan 01. Got a 5-yr contract in Oct 01. Rent is at Greater London levels, so started looking for a house to buy. Not easy, there is lots of overpriced crap around. Found quite a good one in Feb 02, had to ditch it as office rumours said we might move. The rumours died, I kept looking, found a great one in Oct 02 but too expensive. In Jan 03 it was re-advertised at a lower price. Agreed a price, and in March we were 2 days away from signing for it (and handing over 50 grand deposit ) when my lawyer notices there is a bank charge in the land registry. Here bank charges are put on the registry by a court, and have to be removed by a court. My bank won't lend for a house with a bank charge, it seems very few will. Owner claims she knew nothing about it, has now paid off the debt (it was comparatively small) and the charge should be removed soon.

Someone in my office has a damn good lawyer husband who knows the system. Last week he checked out the land registry. Now he says there is no way that charge is coming off soon (read - next 6 mths minimum) as it is due to a messy divorce and the owner not replying to the court's questions. I could find a broadminded bank and buy the house perhaps, with a jacked-up rate of interest, but God knows what would happen when/if I tried to sell it.

Things might change, if someone can get inside the system (I don't feel the above lawyer can, and why the hell should I help the woman make her house sellable?), but I don't really see it. We've put emotional hope into buying a lovely place twice now, and twice been kicked in the face. I've spent a grand and a half on surveys, lawyers' fees etc, and I am AGAIN back to square one, now with only 3.5 years to go. The up side is the government have just lowered stamp duty from 1 June (10% to 6%) and the recession means prices are dropping, but the down side is that it is REALLY difficult to find a nice place - and I think less are coming onto the market now as prices drop, people are just holding on to them. Meanwhile the family is getting more than a bit cheesed by living where we are now in a small rented apartment. We've delayed moving into a better rented place as we seem to be always "about to buy". HAH!

Add this to the nine-month fight to get my wife a driving licence, and the six-month fight to buy a new car, and I am just NOT a happy bunny.

Yours sulking

Brendan

Gordo

If she's so confident the bank charge will be removed, she'll be happy to offer an indemnity (which she can insure against) - i.e. you have an option to sell back to her at the price you're buying if the charge isn't removed within, say, 12 months. you (and a mortgage provider) would have to see evidence that she would be able to pay (other assets which you could take a charge or guarantee over, insurance policy).

Naturally she'd have to stand the costs and extra hassle involved (esp. lawyers fees) and I'd probably want a reduction on the price for the grief, but she ain't going to sell otherwise.

Good luck!
Gordo

Diesel

Commiserations mate - sounds like a bucketfull of hassle. Hope the above indemnity idea works out - guess there would be another hassle in suing if they did not honour the indemnity however...

I learnt the lesson of checking the registry here before even making an offer - you can get a shedload of stuff online; found that the house had had a chiropodist surgery in the extension for eg. Hope that you can get some kind of similar search there. Remember dont give up! You will sell at a HUGE profit to a retiring English couple when your contract ends!

D