Transfer made under power of sale

Hello all, going back several years a builder took money from me and didnt do the work (building work for my disabled daughter). I tool him to court myself (couldnt afford a solicitor) and managed to get a charging order placed on his home (for just over £5000).

However I have now received a B160 Notice of an application for registration of a transfer made under power of sale - stating that my unilateral notice entered in my favour has been cancelled!!

Can they do this? It took a lot of time and work to get this charging order and they can just cancel it??

Please help

What is B160?

What is B160?

Profile: retired barrister legal adviser with MOJ.

As stated - it is a notice of

As stated - it is a notice of an application for registration of a transfer made under power of sale - sent to me from Land Registry

Unfortunately the effect of a

Unfortunately the effect of a Unilateral Notice is limited. 

The entry of a Unilateral Notice in the register does not guarantee that the interest it protects is valid or even that it exists.  All it does is give you the expectation of being notified that a sale is planned.  Your charging order should have been registered as a charge against the property.

If the builder had sought to sell the property himself,  you could have expected to receive prior notice and have time to take some advice

I suspect that what has happened here is that the property has been repossessed and sold by the mortgage lender.  Notices protecting charges are cancelled automatically on a sale by a mortgagee in possession.

It is quite possible that the builder will have some cash as a result of the sale so if you know where he is now living, you could consider fresh enforcement proceedings in respect of your debt.

Hello and thank you for your

Hello and thank you for your informative reply.

The chargeing order was registered against the property with the Land Registry. I received confirmation of this and thought that if the property was sold (in this case I think you are correct that it was repossessed by the mortgage lender)

But I find this very much unfair - the property was purchased in 1997 for £20,000 and sold for £125,000! I was of a mind (obviously wrongly) that the charging order would be paid to myself and that all other monies would go to the mortgage lender.

But as it seems - charging orders arent worth the money they are on and as such the banks always win and the ordinary people in this business lose out - so much for law...

If you had registered your

If you had registered your charging order against the property as a charge, rather than as a Unilateral Notice, you would have been paid out of the net proceeds of sale of the property ie you would have been paid out of what remained after the prior mortgage had been paid and before the builder received the remaining monies. Unfortunately you did not register the charging order, only a Unilateral Notice. It was following the wrong procedure that has led to this very unfair result.  That and the fact that it was a forced sale by the mortgage lender.

I'm not sure I understand - I

I'm not sure I understand - I received the final charging order confirmation back from the Land Registry back in 2014, so I was of the impression that this was placed on the property (N379 form) and that any sale of the property - my interest was placed and I would gain the amount stated

Again thank you for all the advice - it is much appreciated

Form N379 is the correct form

Form N379 is the correct form to register a charging order.  

If the charging order was registered after you sent this form, a charge would have been placed on the property and secured your interest.   If you have confirmation that a charge was registered, I do not know how the property can have been sold without your receiving the money

You previously mentioned a Unilateral Notice which had been cancelled, rather than a charging order. Have you got evidence from the Land Registry that a charge or charging order was registered against the property? 

I am wondering if a mistake was made which resulted in the Charging order being wrongly registered as a Unilateral Notice?  

Another possibility is that your problem has been caused by the builder not being the sole owner of the property. If, for example, he had a wife as joint owner,  a legal charge could not have been entered.  If there was a joint owner, only a restriction could have been entered on the register and the effect of registration of a restriction is very limited. It does entitle you only to notice of the sale.

If this is what happened, the wording of the restriction would be as follows ;  "
No disposition of the registered estate is to be registered without a certificate signed by the applicant for registration or his conveyancer that written notice of the disposition was given to [name of person with the benefit of the charging order] at [address for service], being the person with the benefit of [an interim] [a finalcharging order on the beneficialinterest of (name of judgment debtor) made by the (name of court) on (date) (Court reference.…).

 

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