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Legal Charges- can they be for all the equity in a property?

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  • Legal Charges- can they be for all the equity in a property?

    Hi guys I wonder if anyone can help.

    My mother in law ten years ago lived in a council house which her son said she could buy if he put up the money for it [25k] which she agreed to. The house was bought and it was [and still is] title registered solely in her name.

    We have since discovered her son put a legal charge on the property at the time. Now this is fair enough if it was to cover his inital investment, but it appears the charge is worded so that ALL of the value of the house goes to him upon sale i.e. any equity over and above the initial 25k.

    This was done ostensibly to prevent the council putting a charge on the property if she went into care which never happened and isn't likely to [she's in her late 80's and being cared for by her daughter].

    To me, this whole idea of getting a charge for the whole value of a property- which of course is a fluctuating amount- over and above the inital investment seems a bit dodgy, I mean not even banks can con you like that lol I've still got to see the actual wording of the legal charge, but any thoughts on how to tackle it/challenge it would be welcome

  • #2
    Was the mother in law separately and independantly advised about the implications of the charge when she signed it?
    RICHARD WEBSTERwww.rwco.co.uk
    As a conveyancing solicitor I want to be helpful (England/Wales only) but can't accept liability for this.

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    • #3
      Richard Webster:
      Was the mother in law separately and independantly advised about the implications of the charge when she signed it?

      Hi Richard thanks for getting back- pretty sure that the one firm advised both my mother in law and her son.

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      • #4
        In fact my wife tells me her brother [the 'son' in question], who put the money up for the house instructed the solicitor to do the conveyencing for his mum and it was them that set the charge up as well.

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