Removal of restriction from deeds

Gilesy_W

Hi - I was discharged from bankruptcy in 2009 but its aftermath has recently cropped up when trying to remortgage. At the time, a restriction was placed on the deeds which states;

RESTRICTION: No disposition by a sole proprietor of the
registered estate (except a trust corporation) under which capital
money arises is to be registered unless authorised by an order of the court

When I tried to remortgage, this proved a stumbling block. I've been in touch with Land Registry who referred me back to the Insolvency Service, who in turn have told me "As the Restriction is not registered by the Official Receiver (see below) we cannot remove it.

I have rung Lang Reg and they confirmed that this can only be removed by the Proprietor ie yourself and suggest you take advice on how to get it removed".

Any ideas?!

TheGardener

Try looking here

Was it a creditor that placed the restriction on the property?

Edit - the link is to a document aimed at property professionals but maybe it'll give you a clue where to go next

Gilesy_W

Thanks - I have no idea. I would have assumed it was the Official Receiver, but they say it wasn't. I can't think who else would have possibly put it on! I'll read those notes and see what I can do.

Thanks again

Land_Registry

The restriction you have posted is a form A restriction. When the bankruptcy was declared I imagine it in effected severed your joint tenancy and the form A was added to the title. See section 8.2 of our PG 24

Was the property in joint names but is now in your sole name for any reason and you are trying to remortgage as a sole owner?

If that is the case then removal now will have nothing to do with the bankruptcy or the Official Receiver. It is all about showing that it is no longer required based on what has happened since

An application to cancel the form A restriction can be made by completing forms RX3 and ST5

HM Land Registry must be satisfied that it is no longer required. This will be the case if:
* the interest protected by the restriction has ended or devolved to the registered proprietor(s),
* nobody else has a beneficial interest in the land, and
* if there are two or more registered proprietors (which I don't think there is), they now hold the land on trust for themselves as beneficial joint tenants.

As an alternative, the registrar will accept a certificate by a conveyancer acting for the registered proprietor or proprietors if the conveyancer can speak from their own knowledge of the facts which:

* explains the nature of the beneficial interest protected by the restriction and what has happened to that interest,
* if it has devolved to the registered proprietor or proprietors, explains how it has so devolved,
* confirms, if such be the case, that no one other than the registered proprietor now has a beneficial interest in the property,
* confirms if such be the case, that no beneficial interest in the property has been separately mortgaged or charged, and that no beneficial owner is or was subject to a charging order or bankruptcy proceedings (a registered mortgage does not count), and
* if there are two or more registered proprietors, confirms, if such be the case, that they hold the property on trust for themselves as beneficial joint tenants.
Practice Guide 73 – Statements of truth gives information about the use of statements of truth in support of applications to HM Land Registry

Legal and beneficial ownerships are a complex area of the law and as such we would always recommend seeking legal advice