Bank has no charge on property?

Skint_Catt

Hi, wonder if someone can help!

My friend's father passed away in Jan/Feb and they're still trying to get probate.

He owned some property (commercial with flats above) which he was renovating, which had a mortgage with a large banking institution.

She's been told by her solicitor that the bank can't prove they have a charge on the property and that it's possible the banks solicitors messed up, however the 'mortgage' then becomes an unsecured loan(?).

My friend wonders how this would then be repayed? Would a loan agreement then be drawn up?

(Another question is where have the mortgage payments been going all this time?!)

Any help appreciated!

C xx

JOSOM

Skint_Catt wrote: »

Hi, wonder if someone can help!

My friend's father passed away in Jan/Feb and they're still trying to get probate.

He owned some property (commercial with flats above) which he was renovating, which had a mortgage with a large banking institution.

She's been told by her solicitor that the bank can't prove they have a charge on the property and that it's possible the banks solicitors messed up, however the 'mortgage' then becomes an unsecured loan(?).

My friend wonders how this would then be repayed? Would a loan agreement then be drawn up?

(Another question is where have the mortgage payments been going all this time?!)

Any help appreciated!

C xx

The loan repayments would still have been paid to the Bank. The fact they don't thnk there is a charge over the property means that the solicitors who dealt with the purchase did not register the property with the Land Register and therefore there is no record of it held by the Land Registry. No Charge Certificate so means the loan is not secured and does not require to be discharged by the Bank. They may insist on reverting to a unsecured loan. Hope this helps

socrates

I would put a charge on it immediately for a money debt owed and make sure you are first in line.

If the bank makes a loss it will be covered by the solicitors indemnity insurance.

A certain famous LL on the South Coast was very famous for this.

Skint_Catt

Thanks will let her know your responses

SouthCoast

socrates wrote: »

I would put a charge on it immediately for a money debt owed and make sure you are first in line.

If the bank makes a loss it will be covered by the solicitors indemnity insurance.

A certain famous LL on the South Coast was very famous for this.

With love from
Nicholas.
xxxxxxxxxxx
:hello:

socrates

SouthCoast wrote: »

With love from
Nicholas.
xxxxxxxxxxx
:hello:

Very very well spotted :T:T:T

Skint_Catt

SouthCoast wrote: »

With love from
Nicholas.
xxxxxxxxxxx
:hello:

????

socrates

Skint_Catt wrote: »

????

Sorry - only for the 'in' crowd

Just concentrate on 'ring fencing ' the property'

silvercar

My friend wonders how this would then be repayed? Would a loan agreement then be drawn up?

The bank would call in the loan. When they realise the charge isn't secured, they would still ask for the money, probably from the estate.

I guess the solicitor, having found that the charge wasn't registered, will ask for the loan paperwork so the lender can prove they are owed the money.

socrates ides of ring fencing, means that the lender has to wait in the queue after the first charge on the property is met. If the first charge (ie a family member) covers all its value, there is no point in the lender trying to repossess.

Though I think the lender would clearly be a creditor of the deceased's estate.