Limitations act 1980 -legal charge from 1986

[nct001]

Hi,

Can anyone help on this matter, a good friend took a legal charge on a property in 1986 and the debt was crystallised at £60k - bank not looking to recover any interest on this money.

Fast forward 28 years and a letter comes through the door and they crystalise the debt at same figure of £60k with no interest and are basically offering to close the matter at a vastly reduced sum of 50 per cent.

He was about to pay this, I could give him the money but for me is this because they realise the debt is no longer legally enforceable, lost paper work, time involved etc.

Limitation act 1980 makes me think this is the case, any one help?

[Saleen836]

have a read of the following, might be usefull...
http://www.blmlaw.com/2301/4254/objects/blm-e-bull...

[nct001]

Thanks.

No charging order was placed on the property by a court. No judgment was created by a court to place this charge.

It was a voluntary legal charge over a property offered to a bank.

Limitations act 1980, 20(1) was the means for it being time barred.

[Simpo Two]

So... to pay off my £100K gambling debts, all I have to do is offer a bit of my house, wait a bit and then it gets written off?

How does one take a 'legal charge' on a property without a court?

[nct001]

Simpo Two said:

So... to pay off my £100K gambling debts, all I have to do is offer a bit of my house, wait a bit and then it gets written off?

How does one take a 'legal charge' on a property without a court?

A mortgage is a legal charge on a house, a secured loan is an example of a second legal charge on a house. Neither of which require court action.

I'm guessing there was no equity in the house in 1990 recession so bank, as was quite normal then, held the charge, waiting for house prices to rise and then enforce the charge.

Can someone tell me.... a second charge holder cannot force sale of property? They have to wait for the property to be either sold, mortgage paid off or remortgaged?