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Conveyancing advice needed - Restriction on Land Registry Title

Hi,

When my partner and I bought our property i put in a hefty deposit, so we had a declaration of trust drawn up to say that in the event of the partnership ending, I would get my original investment back before any proceeds are split.

Now we have come to the end of our fixed rate and are re-mortgaging.

The new banks legal team have called me today to say that they need a copy of the DoT in order to check it and provide a statement of truth, and will charge £50+VAT for their efforts.

The exact wording on the title is as follows:

RESTRICTION:No disposition by the proprietors of the registered estate is to be registered unless one or more of them makes a statutory declaration or statement of truth, or their conveyancer gives a certificate, that the disposition is in accordance with the Declaration of Trust dated xx.xx.xx or some variation thereof referred to in the declaration, statement or certificate.

I am wondering if i can provide what the solicitors are after, to save myself the £60 fee? Anyone had any experience of this?

Another option would be to get the restriction removed and a new title issued without it, as we need to replace/update the DoT anyway, as our situation has changed with regards to shares, capital etc. Is this something that is quite straight forward, once the correct Land Registry forms are filled out? Or would this also need a solictor?

Any advice would be greatly appreciated

Thank you

Comments

  • Land_Registry
    Land_Registry Posts: 6,101 Organisation Representative
    Part of the Furniture 1,000 Posts Name Dropper
    If you are considering re-mortgaging,the restriction will need to be complied with before you can register the new mortgage. As the restriction says, you and/or your partner could complete a statutory declaration or statement of truth yourself, but making sure it is worded and executed correctly .

    If you want to remove the restriction and it was you and your partner who had it put on, you need to send us a form RX4 signed by both of you; or if it wasn’t you then a Form RX3 signed by both of you but including evidence as to why the restriction doesn’t apply any more .

    Updating your DOT it isn’t anything we deal with or make a note of in your register as we don’t make any reference in registers as to how many shares each proprietor owns.

    But you might be interested in reading the information we have available on our website about owning property jointly and the different types of ownership.
    Official Company Representative
    I am the official company representative of Land Registry. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
  • RED28
    RED28 Posts: 20 Forumite
    Thank you for your response.

    I have taken a look at the RX4 form to withdraw the restriction it and seems quite straightforward to complete.

    Once this is lodged, will i receive a new title?

    With regards to the Declaration of Trust, i understand i can apply a new Form A restriction using form RX1, which refers to a new Declaration of Trust, but the actual contents of the DoT are not noted on the Title. If i lodge this, can i use exactly the same wording as above for the original DoT, but with a different date? Should i send a copy of the DoT with for RX1, or just keep it in a safe place in case it is ever needed?

    I have seen a form JO where you can state how the property is shared on the form itself. Could this form be used instead of lodging a restriction?

    Many thanks
  • Land_Registry
    Land_Registry Posts: 6,101 Organisation Representative
    Part of the Furniture 1,000 Posts Name Dropper
    RED28 - apologies for delayed posting but we failed to subscribe to the thread so were not aware you had posted.
    I suspect you have found the answer elsewhere but in case not or if others come searching here is a response

    Once the RX4 is completed the entry is removed. The title is not replaced but it simply has one less entry.

    The form A restriction is different to the one you refer to above. It does not for example refer to the DoT.

    If you are unsure of what is involved then I would recommend reading our online guidance on joint property ownership

    Form JO is not a separate application but would accompany a substantive registration for example a transfer on sale or a first registration so is not applicable here
    Official Company Representative
    I am the official company representative of Land Registry. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
  • Jeffrey_Shaw
    Jeffrey_Shaw Posts: 512 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    But surely the Restriction IS still needed?
    Does it not protect each party's stake under the Trust Deed?
  • RED28
    RED28 Posts: 20 Forumite
    My plan is to get the existing restriction removed using a form RX4, send the revised title to the conveyancing solicitor so as the re-mortgage can go through without any complications, then get a new restriction put onto the title showing how the property is shared between my partner and I, which will be different to the original share split.

    I need to do a little more reading over the weekend on how to lodge a new restriction.

    I believe i may have incorrectly referred to the restriction as a 'Form A'. My new understanding is that a Form A is a standard restriction referring to how the property is owned (jointly/in common) but what i need is just a restriction. Please correct me if i am wrong, again!
  • Jeffrey_Shaw
    Jeffrey_Shaw Posts: 512 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    There are dozens of different forms of currently-standard HMLR Restrictions, plus:
    a. old ones pre-dating 2003; and
    b. non-standard ones, available at an extra cost if really needed.
  • RED28
    RED28 Posts: 20 Forumite
    I've done a bit more research regarding the new DoT and intend to do the following:

    1. Use form RX4 to remove original restriction referring to DoT dated 02.09.2009.
    2. Issue Title to legal team so re-mortgage can go through.
    3. Get a new DoT drawn up to state how the property will now be owned.
    3. Use form RX1 to apply a Form B restriction on the new title, using the exact wording as the original restriction but with a new date.

    I believe this is the right way forward, but I am wondering if it is possible just to get the original DoT amended instead of going to the trouble of getting it removed and added back on again, albeit with a different date.

    I would need to send a statement of truth to the legal team stating that ‘I believe that the facts and matters contained in this statement are true’ in order for the re-mortgage to go through, but has anyone had any experience of amending a Declaration of Trust, and would this amendment have to be referred to on the title, ie. the date it was made?
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