Help! Standard Security Discharge - Scotland

loucam

Hi, looking for any help at all with this issue (sorry its long winded)

We had a Picture Loan which we paid off in full in 2008. This had been secured against our property and the solicitor at the time confirmed the discharge. Unfortunately it has come to light that as there were effectively two loans (an initial on and a further top up) these were recorded as two separate securities and only one was searched for and discharged. We were unaware of this.

We sold the property that this charge is against back in 2013, using a different solicitor. He found the charge and requested information directly from the Picture legal team that it had been paid off, which they confirmed. Unfortunately for whatever reason he then failed to request the discharge. Again, we were not made aware of any of this.

Our buyers recently contacted is to tell us they were having problems remortgaging because of this and my solicitors firm have been trying to get this sorted.

I met with them today and this is a summary:

Since getting confirmation that the loan was repaid in full there is now no one to sign the discharge due to the liquidisation of the company.

The land registry will not take our evidence of loan repayment as proof on its own.

They have said the best option is my husband and I open a bank account, deposit a nominal sum and the bank and my solicitor will sign a Certificate of Consignation. They will send this with the repayment proof to the land registry who will discharge the security.

This bank account must remain open and untouched forevermore??

Now, I phoned the land registry helpline and the guy was unsure but just read a paragraph out about what a Certificate of Consignation is.

My issue with this is I don't particularly want tied to this forevermore. Is this really our only / best option?

If anyone has an idea about any of this then advice would be much appreciated.

Thank you!

jonesMUFCforever

IMO this is not your problem.
Tell the people who bought your house to get their solicitor to sort it out - who carried out the searches?

loucam

Their solicitor searched recently to remortgage and discovered it. My solicitor has retired but it seems as he failed to carry out discharge its up to his firm to sort it.

I just think there must be an easier option whereby I don't have to tie myself to something legally?

Thanks for your comment.

jonesMUFCforever

Solicitors have professional indemnity insurance to cover the for c*ck ups like this.

loucam

True, I have posted on a Scottish law forum as I definitely don't think this should be my responsibility.

Thanks again

glennstar

How is this your problem?
Why are you concerning yourself about something that you were unaware of?
There are no disclosure obligations here. I suggest the new owners take it up with their legal counsel.