UK Property Law
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If someone is alleged to be owed money and they have a restriction against a property in respect of the money which is alleged to be owed, then in the event of their death, the alleged debt is not written off. The restriction and the alleged debt remains in place for the benefit of their beneficiaries and estate.
That is correct.
Interest is only added at the current rate of 8% if the amount of the debt is over £5000. This is a provision under the Judgement Debts (Rate of Interest) Order 1993. Before that, the rate was 15%. It is simple interest, not compound interest.
As the interest is subject to a statutory provision, it is not possible to get it frozen.
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Can I clarify anything else for you?
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The limitation period on a debt is 6 years under the Limitation Act 1980. However that does not apply to judgements or restrictions on the property. Once there is a debt on the property, it remains beyond the limitation period.
They cannot go for personal bankruptcy once they have a charge on the property. They would have to apply to court for an order to sell the property which they will not get usually if the restriction is only against one person’s interest in the property.