legal aid

hello,

I am now selling my house and my solicitor has written to legal aid to give an update of the statutory costs. I need to funds for my new home there is no response from them what can we do? in the final order the counsel wrote I can use the funds towards my next home any advice appreciated thanks

The order that you state is to give authority for the Legal Aid Agency to defer the Statutory Charge against your property once this is purchased.

However, there is no automatic right to defer the Charge, the Legal Aid Agency has to confirm that they permit this.

Charles

yes but there is no response from them. Can I utilize all the funds and they can put the charge on my next home i am short of ash anyways

OMG! i CANT BELIVE WHAT THEY WROTE BACK
The final hearing the solictor said it was £22k how will i rehouse myself and my daughter??
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The statutory charge does arise in this matter, and this attaches to the whole of your client’s interest in this property, which is understood to stand at 25% of the equity.



Based on the costs of sale (£600,000) – the amount the charge is attracted to is therefore up to £150,000.



The total costs incurred under this public funding certificate are £38,431.63. The whole of this amount would therefore need to be retained from the proceeds of sale.



Further, if your client was previously funded via the Legal Help scheme, then this will also attract the charge and the total Legal Help costs would also need to be retained on top of the above figure.

You should be able to defer the Statutory Charge based on those figures. The idea is that they register a Charge at the same time as purchase of the property and the Charge is secured as a second charge after the mortgage (if you have one).

The Statutory Charge attracts simple interest at 8% per annum or a little over £3000 per year. Any monies you pay off the charge will first be used to discharge any interest and any remainder will be utilised in reducing the lump sum.

Charles