Consenting to a Charge on your property under pressure

In cases where one person, usually a wife has been pressured into signing a charge against their property as security, or acting as guarantor for the debts of their partner, (for example business debts), the courts have decided that the lender may sometimes not be able to recover their debt by forcing a sale of the property.

The courts may be willing to "set aside" a charge, (stop it from being enforced) if one person has entered into the agreement because of misrepresentation or pressure from a third party who is in a relationship of trust with the borrower. For example, a husband & wife, parent & child, boyfriend & girlfriend, employer & employee, solicitor " client etc.

Where it looks as if the transaction, (agreeing to sign the charge) may not be to the borrower / guarantors advantage the lender must take steps to make sure the borrower or the guarantor is aware of the risks.

This will usually involve making sure they receive independent legal advice.
 

Bankruptcy and your home

Private Housing