Should I put a charge on a property to get paid?

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1

Hi everyone, I’m a builder, and the owners of a property I’m working on agreed to let me put a charge on their property to make sure I get paid. The thing is, one of them already has a charging order on it, and that person could force the property to be sold. They have to sell by June 2015 anyway, so I’m wondering if putting a charge on the property is worth it. Will I definitely get paid before the other charging order holder? Also, how long does it take to put a charge on a property?

2

Yeah, you can definitely put a charge on, but I think it depends on whether the earlier charge has any restrictions that might block you. Did you check that part?

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Kaius said:
Yeah, you can definitely put a charge on, but I think it depends on whether the earlier charge has any restrictions that might block you. Did you check that part?

Good point! The earlier one is a charging order, so IDK if that would prevent mine. Do you know?

4

Kaius said:
Yeah, you can definitely put a charge on, but I think it depends on whether the earlier charge has any restrictions that might block you. Did you check that part?

Usually, a charging order wouldn’t block later charges unless there’s something specific from a lender. You might want to double-check with a solicitor.

5

It shouldn’t take long at all to get a charge on. A solicitor can probably get it done in about a week.

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Tavi said:
It shouldn’t take long at all to get a charge on. A solicitor can probably get it done in about a week.

A week? That’s way faster than I thought. What’s involved in the process?

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Tavi said:
It shouldn’t take long at all to get a charge on. A solicitor can probably get it done in about a week.

Pretty simple! You just sign a form and send it to the Land Registry. Any competent solicitor can handle it for you.

8

But what if there isn’t enough money from the sale to pay you? Have you thought about that?

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Quincy said:
But what if there isn’t enough money from the sale to pay you? Have you thought about that?

I was hoping the charge would secure my payment. Do you mean I might not get paid even with a charge?

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Quincy said:
But what if there isn’t enough money from the sale to pay you? Have you thought about that?

Yeah, you’d only get paid if there’s enough surplus after other charges and costs. Maybe ask their solicitor for an undertaking to pay you?

11

The charging order holder could technically apply to force the sale, but since they’re selling in June anyway, I doubt it’ll happen.

12

Kai said:
The charging order holder could technically apply to force the sale, but since they’re selling in June anyway, I doubt it’ll happen.

Oh, that’s a relief! So, it’s probably safe to go ahead with the charge then?

13

Kai said:
The charging order holder could technically apply to force the sale, but since they’re selling in June anyway, I doubt it’ll happen.

Sounds like it, but getting that solicitor undertaking would be smart, just to be sure you’re covered.