Land Registry questions

LeeJ_2

Land_Registry said:

LeeJ_2 said:

Form K Restriction
Hi
I'm buying a house which has a Form K restriction on the property. Am I correct in thinking that the sale can proceed but the following needs to happen:
1) The seller's conveyancer needs to notify the creditor, named on the restriction, of the sale
2) The seller's conveyancer needs to certify that they have notified the creditor of the sale.
3) When registering the sale with LR, the certification of notification to creditor needs to be provided and that will automatically result in the restriction being removed by the LR.

Is the above correct? If so, have I missed out any steps?
Thanks in advance for any help you can provide.

The key here is that it’s your conveyancer who makes the application to register your purchase. Not the seller. 

The form K restriction wording is clear that the conveyancer gives such a certificate so they need to be certain and that generally means that they, not the seller, notifies the creditor. 

When they lodge the application they then certify it’s been done in accordance with the form K wording 

Thanks for the quick response.
Just to clarify, can you confirm that this revised version is correct:
1) The buyer's conveyancer needs to notify the creditor, named on the restriction, of the sale
2) When the buyer's conveyancer lodges the application, they need to certify that they have notified the creditor of the sale in accordance with the form K wording.
If this happens, the LR will automatically remove the restriction.
Sorry to be pedantic, but I want to be absolutely sure I have this correct.
Thanks again.

 

Land_Registry

LeeJ_2 said:

Thanks for the quick response.
Just to clarify, can you confirm that this revised version is correct:
1) The buyer's conveyancer needs to notify the creditor, named on the restriction, of the sale
2) When the buyer's conveyancer lodges the application, they need to certify that they have notified the creditor of the sale in accordance with the form K wording.
If this happens, the LR will automatically remove the restriction.
Sorry to be pedantic, but I want to be absolutely sure I have this correct.
Thanks again.

Pedantry is fine but it’s important to understand the nuances involved as whilst what we need is clear how you get to that point is a matter for those to decide/action. 

If the transfer (sale) is by the joint owners to a third party then the restriction needs to be complied with. That means that when it’s lodged with us we need a “certificate by the applicant for registration or their conveyancer that written notice of the disposition was given to....”
So in essence anyone can notify the creditor but the applicant/their conveyancer need to be confident they have in order to give the required certificate. As such, and I’m sure you will appreciate this, the logical way to achieve that is for the buyer’s conveyancer to both notify and certify 
If they comply with the restriction, apply to register the transfer as mentioned then we should automatically cancel the form K restriction and register the buyer as the new owner. 

I’m unsure why you need to be absolutely sure in this way but if it’s to convince others, for example a conveyancer, then perhaps best to refer them to our PG 76 section 4 which explains the automatic cancellation 

denideth

Morning.

We are selling a leasehold (first floor) flat, but the freehold hasn't been registered before. We have contacted the freeholder to do this.

When I look for the property info on the LR website, the description says:

"Sorry, there is no price paid/value stated information available for this property.

Either we have received an application to register the tenure in this property but the information cannot be viewed electronically until it is completed or this information is not available to view electronically. Please contact the appropriate HM Land Registry office for further information quoting the property description."

Does this mean the freeholder has applied to have the property registered? Is there anything we, as the leaseholders/sellers, can do to speed up this process? Our mortgage offer is expiring soon so it's becoming more and more urgent that this issue is sorted asap.

Thank you in advance!

Land_Registry

denideth said:

Morning.

We are selling a leasehold (first floor) flat, but the freehold hasn't been registered before. We have contacted the freeholder to do this.

Does this mean the freeholder has applied to have the property registered? Is there anything we, as the leaseholders/sellers, can do to speed up this process? Our mortgage offer is expiring soon so it's becoming more and more urgent that this issue is sorted asap.

Thank you in advance!

Most likely so contact them and ask them to request expedition. They’ll need a copy of your mortgage offer to submit along with their request. 

If it’s expedited it should mean it’s considered ASAP but it still has to be in order and registrable of course 

LeeJ_2

Land_Registry said:

LeeJ_2 said:

Thanks for the quick response.
Just to clarify, can you confirm that this revised version is correct:
1) The buyer's conveyancer needs to notify the creditor, named on the restriction, of the sale
2) When the buyer's conveyancer lodges the application, they need to certify that they have notified the creditor of the sale in accordance with the form K wording.
If this happens, the LR will automatically remove the restriction.
Sorry to be pedantic, but I want to be absolutely sure I have this correct.
Thanks again.

Pedantry is fine but it’s important to understand the nuances involved as whilst what we need is clear how you get to that point is a matter for those to decide/action. 

If the transfer (sale) is by the joint owners to a third party then the restriction needs to be complied with. That means that when it’s lodged with us we need a “certificate by the applicant for registration or their conveyancer that written notice of the disposition was given to....”
So in essence anyone can notify the creditor but the applicant/their conveyancer need to be confident they have in order to give the required certificate. As such, and I’m sure you will appreciate this, the logical way to achieve that is for the buyer’s conveyancer to both notify and certify 
If they comply with the restriction, apply to register the transfer as mentioned then we should automatically cancel the form K restriction and register the buyer as the new owner. 

I’m unsure why you need to be absolutely sure in this way but if it’s to convince others, for example a conveyancer, then perhaps best to refer them to our PG 76 section 4 which explains the automatic cancellation 

Thanks again for the reply.
One final question (hopefully). When the buyer's conveyancer notifies the creditor of the sale, does he have to obtain a formal acknowledgement of that notification from the creditor, or is it enough to have sent the letter? 

Land_Registry

LeeJ_2 said

Thanks again for the reply.

One final question (hopefully). When the buyer's conveyancer notifies the creditor of the sale, does he have to obtain a formal acknowledgement of that notification from the creditor, or is it enough to have sent the letter? 

The restriction asks you to certify that they have been notified. You don’t have to prove that they received it or otherwise 

LeeJ_2

Scenario:
i) A house was originally owned as TIC between husband and wife.
ii) On the husband's death, his will placed his half of the house in trust. The trust provided a life interest to his wife, and named his son asthe only beneficiary. The son is also the sole trustee.
iii) that means that the house should now be:
50% owned by wife
50% held in trust
Can you please confirm what the LR record should look like in the circumstances detailed above. 
i.e. Who would appear as the property owners? Wife & son?, Wife & trust?
And would there be anything else on the LR record which indicates that half of the house is held in trust?
Thanks in advance for any help.

pressandgo

I have a difficult situation regarding an Interim Charging order that was placed on my property prior to my purchase of the property which has now resulted in two lost sales.
The charge was placed on the property in July 2011 and we purchased it in December 2011. The property was owned by a company which has gone into liquidation and the claimant is now deceased and their son and executor had mental health issues and had disappeared. The monies from the sale were paid to a bank as it was subject to fixed charges. Attempts by the liquidator to trace the executor failed, my property not being the only one affected by a charging order. The liquidator has confirmed that after defraying the expenses the realisations there were insufficient to declare a dividend to any creditors of the company.
I am now seeking advice on how this charge can be removed from the property.

Land_Registry

pressandgo said:

I have a difficult situation regarding an Interim Charging order that was placed on my property prior to my purchase of the property which has now resulted in two lost sales.
The charge was placed on the property in July 2011 and we purchased it in December 2011. The property was owned by a company which has gone into liquidation and the claimant is now deceased and their son and executor had mental health issues and had disappeared. The monies from the sale were paid to a bank as it was subject to fixed charges. Attempts by the liquidator to trace the executor failed, my property not being the only one affected by a charging order. The liquidator has confirmed that after defraying the expenses the realisations there were insufficient to declare a dividend to any creditors of the company.
I am now seeking advice on how this charge can be removed from the property.

If it’s noted as a charging order then you’d need a form CN1 and evidence that it’s been discharged/released by the creditor or dismissed by the court 
If you can’t get the former then it’s legal advice you may need re the latter 

Land_Registry

LeeJ_2 said:

Scenario:
i) A house was originally owned as TIC between husband and wife.
ii) On the husband's death, his will placed his half of the house in trust. The trust provided a life interest to his wife, and named his son asthe only beneficiary. The son is also the sole trustee.
iii) that means that the house should now be:
50% owned by wife
50% held in trust
Can you please confirm what the LR record should look like in the circumstances detailed above. 
i.e. Who would appear as the property owners? Wife & son?, Wife & trust?
And would there be anything else on the LR record which indicates that half of the house is held in trust?
Thanks in advance for any help.

Not really as we don’t refer to TIC on the register. Who appears as the registered legal owners is up to the affected parties. 

The key point to understand is that we register the legal ownership. If that is held by joint owners and one dies that legal ownership passes to the surviving joint ownership. 

How the beneficial ownerships and trust/wills are dealt with is a matter for those involved. In some cases owners may apply for restrictions to be registered to protect a trust but they don’t have to. 

I’d suggest you have a look at PG 24 and our guidance on joint ownership before seeking legal advice