Cross charging issue

A

arklow101

Guest
hi everyone
i have a query regarding cross charging.....
imagine the following scenario:

a mortgage was taken out in 2005 for a property - property a
we had another property, mortgaged with anohter bank - property b
the deal with te bank in 2005 was that the mortgage was for property a, they would refinance property b and that the loans were supposed (i think) to be cross secured

so anyway 6 months ago one of the solicitors (junior) in the firm called me to say tat they had finished the paperwork (from 2005!) and that they had all the papers / deeds for property b and that i could collect the stuff. so i went in and collected the deeds.

i presume the bank have forgotten about the cross charge, if there was one because it's so long ago now that i cant remember, and i am free to sell this house? Or am I?

I keep hearing on the news about banks paperwork being terrible in the boom and i dont want to call the bank to ask incase they cause me trouble but on the otherhand i dont want to let them know i have the deeds.

has anyone come across this?

Thanks e
 
Is there a risk of you defaulting on the loan for property A?
Do you want to sell property B now?
If the answers are no, then i wouldn't be contacting the bank.

If you do want to sell property B, during conveyancing the loan on property A, part secured on property B, might come up.
 
arklow101 said:
hi everyone
i have a query regarding cross charging.....
imagine the following scenario:

a mortgage was taken out in 2005 for a property - property a
we had another property, mortgaged with anohter bank - property b
the deal with te bank in 2005 was that the mortgage was for property a, they would refinance property b and that the loans were supposed (i think) to be cross secured

so anyway 6 months ago one of the solicitors (junior) in the firm called me to say tat they had finished the paperwork (from 2005!) and that they had all the papers / deeds for property b and that i could collect the stuff. so i went in and collected the deeds.

i presume the bank have forgotten about the cross charge, if there was one because it's so long ago now that i cant remember, and i am free to sell this house? Or am I?

I keep hearing on the news about banks paperwork being terrible in the boom and i dont want to call the bank to ask incase they cause me trouble but on the otherhand i dont want to let them know i have the deeds.

has anyone come across this?

Thanks e
Click to expand...

Could it be that the junior solicitor has made the most appalling mistake by releasing the deeds to you and that you hope to profit by that mistake? That you know perfectly well that property b was to be cross secured with property a? That you don't want to make proper enquiries and accept responsibility for your own debts?

Why not deal with the issue properly and try and ascertain the reality of the situation and deal with it in an adult fashion?

Just wondering.

mf
 
Hi mf
I presume the solicitors firm did not get me to sign the cross charge.
It's 5 years later! I thought at the time that both propertys were to be cross charged but I will keep paying the mortgage.
In any event if i couldnt pay the mortgage on property a and i had already put property b in the wife's name (Since I have the deeds!) the bank would not be able to come after property b because my (and their) solicitor didnt register the charge.
Am I nieve in thinking this?
 
arklow101 said:
Hi mf
I presume the solicitors firm did not get me to sign the cross charge.
It's 5 years later! I thought at the time that both propertys were to be cross charged but I will keep paying the mortgage.
In any event if i couldnt pay the mortgage on property a and i had already put property b in the wife's name (Since I have the deeds!) the bank would not be able to come after property b because my (and their) solicitor didnt register the charge.
Am I nieve in thinking this?
Click to expand...

You are very naive.

I believe that stuff like this always catches up. And the longer you allow it to drift, the more expensive it becomes to fix.

And when people say - but its not my fault that someone else made a mistake, I say, accept responsiblity for what happens in your life and deal with it.

I rather expect that there will be a lot of inter spousal transfers being set aside by the Courts in due course.

mf
 
When it comes to bankruptcy isn't it the case that they can only go back 6 months and so by transferring the property to a spouse before this time you can avoid that asset being touched.

From reading the papers yesterday this seems to be what happened with a pension pot of a recent bankrupt that was transferred to a life assurance policy and as it was done more than 6 months prior it cannot be touched.

Things do not "always catch up" on everyone!
 
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