Click here to learn more about our revolutionary app or download directly from one of the sources below.
also contains details of any burdens affecting the property, such as restrictive covenants – for example, restrictions on the use of the property; positive covenants – for example obligations to maintain a fence or driveway; easements and mortgages. (An easement is a right benefiting a piece of land (known as the dominant tenement) that is enjoyed over land owned by someone else (the servient tenement).
Usually, such a right allows the owner of the dominant tenement to do something on the other person’s land, such as use a path, or run services over it.)
When considering options for dealing with the main residence of a Bankrupt a Trustee in Bankruptcy has a number of options.
The Trustee can apply to the court for a charging order to be applied to the property, which means that if there is any attempt to re-mortgage or sell it the Trustee will be informed and has first call on any proceeds raised.
If a Trustee is not able to dispose of the Bankrupt’s interest in the family home by the time he has completed the administration of the estate he can agree to accept a Charging Order on the main residence.
The maximum duration of a charging order is normally 12 years, but it can be renewed. The charging order would be subject to the provisions of the Charging Orders Act 1979. Under this Act the court has discretion to impose conditions as to when the charge is to become enforceable (and whether interest will accrue).
When the property is eventually sold sometime in the future, the Trustee would seize his share of the equity.
[See ‘Bankrupt’ and ‘Trustee in Bankruptcy’.]
The legal term ‘chattel’ refers to personal property or goods.
These can have a different treatment under leases depending upon whether they are fixtures. Fixtures are chattels that have become fixed to the land or building
