Questions and Info relating to Property Issues inc, Charging Orders and Repossession

Moderators: TalbotWoods, JaneClack

By Russ123
#301223 Hi,
Thanks in advance for any help with this matter.

My partner and I bought a house together before getting married, equity split was 50/50. Over the last few years I've become liable for a number of debts include a 'business' debt. We have approximately £40k equity in our house and I'm thinking of getting a loan from a friend for my £20k and securing this as a second charge. My questions are:
1) What is the process of undertaking a second charge?
2) Legally, do I need to get the house valued etc?
3) If all goes wrong in the future, is my wifes £20k safe?

Thanks for any advise.
Regards
User avatar
By TalbotWoods
#301293 A second charge will not prevent a creditor obtaining a CCJ, securing it them self and forcing the sale. This has been known to happen, even when a creditor knows they wont get a penny to start with.

So to your specific points:

1) if you are taking a secured loan what will automatically generate the charge, if you are borrowing off a relative, they will need to apply to the Land Registry to apply a charge on the property (but be aware the latter ones can get thrown out and could ignored by the courts as an avoidance technique).

2) No

3) Possibly (but properly not), it will depend on the type and status of you legal ownership, Joint Beneficial Tenants, Tenants in Common, etc. This you would need to consult with a specialist housing solicitor to determine.