Mortgage not registered with land registry
Discussion
It's a weird one,
Chap has a mortgage arranged back in the 80s and it is not registered by the lender on land registry... solicitor has carried out this. The lender was made aware of this last year and by phone call just shrugged it off and said that's how it is.
Legally where does the mortgage company stand?
Solicitor advised selling and moving to Spain!
Any advise?
There must be a legal reason why it is not land registry charged, is there a case for having it set aside, despite it being paid each month?
Chap has a mortgage arranged back in the 80s and it is not registered by the lender on land registry... solicitor has carried out this. The lender was made aware of this last year and by phone call just shrugged it off and said that's how it is.
Legally where does the mortgage company stand?
Solicitor advised selling and moving to Spain!
Any advise?
There must be a legal reason why it is not land registry charged, is there a case for having it set aside, despite it being paid each month?
IIRC it hasn't always been necessary to register ownership with the land registry.
Either way, its likely that ownership can be proven.
When I purchased my property it got held up because of a cock up years ago - brief time line:
House built, sold to previous owner as leasehold.
a year or two on, the owner buys the freehold.
A few years on the owner of the freeholds in the road sells them all to another company. Freehold for the property mistakenly transferred to new company at the LR.
A few decades later, I'm buying the property and my solicitor digs around and finds this mess. Land Registry sent a letter to the "new" company which basically says "You don't own this freehold, you never did, do you agree to surrender it?" They didn't reply so a month later the freehold was transferred back to the owners and then to me.
Either way, its likely that ownership can be proven.
When I purchased my property it got held up because of a cock up years ago - brief time line:
House built, sold to previous owner as leasehold.
a year or two on, the owner buys the freehold.
A few years on the owner of the freeholds in the road sells them all to another company. Freehold for the property mistakenly transferred to new company at the LR.
A few decades later, I'm buying the property and my solicitor digs around and finds this mess. Land Registry sent a letter to the "new" company which basically says "You don't own this freehold, you never did, do you agree to surrender it?" They didn't reply so a month later the freehold was transferred back to the owners and then to me.
Is the house title registered at the Land Registry? If not, it presumably didn't need to be when ownership last changed; it was about 1995 when the last areas were brought into compulsory registration on transfer.
In that case the mortgage will be registered as a land charge instead, as they always were with unregistered conveyancing.
In that case the mortgage will be registered as a land charge instead, as they always were with unregistered conveyancing.
^^^ Very true.
Usually the same solicitor acts for both the purchaser and the bank. So it's highly unlikely that, if it's the same solicitor who handled the purchase, they would be casual about "move to Spain".
If a mortgage was not properly registered it doesn't mean the owner's liability to the bank doesn't exist. The bank can still come after you for their money. However, the bank wouldn't be able to pursue an innocent purchaser of the house.
Usually the same solicitor acts for both the purchaser and the bank. So it's highly unlikely that, if it's the same solicitor who handled the purchase, they would be casual about "move to Spain".
If a mortgage was not properly registered it doesn't mean the owner's liability to the bank doesn't exist. The bank can still come after you for their money. However, the bank wouldn't be able to pursue an innocent purchaser of the house.
Jobbo said:
Is the house title registered at the Land Registry? If not, it presumably didn't need to be when ownership last changed; it was about 1995 when the last areas were brought into compulsory registration on transfer.
In that case the mortgage will be registered as a land charge instead, as they always were with unregistered conveyancing.
As far as I am aware, from land registry records, the house is correctly registered at the land registry but there are no charges against it. How would anyone know about a land charge?In that case the mortgage will be registered as a land charge instead, as they always were with unregistered conveyancing.
The mortgagee has no intention of doing a runner to Spain, but given the mortgage is not registered it may be improper?
The property is about to be mortgaged by an equity release scheme, to pay this unregistered mortgage off.
Given it is unregistered mortgage would this lender negotiate down their unregistered mortgage for full payment by the equity release lender?
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