Title Restrictions preventing completion

Smithyt

Please help!!! I am really struggling at the minute.
I am trying to Purchase a Long lease flat and we was right at the stage on completion literally to the day and then my Solicitor tells me, hold on there is restrictions on the title which in simple terms means that somebody else name may be left on the property title, and that it may well effect me if I am trying to sell or remortgage in the future.

They then ask me what I wanted to do, and obviously said I do not want to pay out all my money when there is a risk attached, who would?

I have looked through the title deeds that where sent to me and the restrictions are as follows
05.06.2017 RESTRICTION: No disposition of the registered estate by the proprietor of the registered estate is to be registered without written consent signed by xxxxxxxxxxxxx or his personal representative.

17.06.2016 RESTRICTION: NO disposition of the registered estate by the proprietor of the registered estate is to be registered without a written consent signed by the proprietor for the time being of the charge dated 18th May 2019 in favour of (credit company) referred to in the charge register.

The sellers solicitors are saying that because it’s a mortgage in position sale the title will be wiped??? and mine are saying that is not the case. Both solicitors are very slow in replying so this is dragging on and on.

My Solicitors are saying now that they have requested a completed RX3 form from the other side which seems to be taking forever and they need to submit these to the land registry to get restrictions removed.

Any help or advice would be greatly appreciated as I do not know how much more of this I can take it has been going on for so long and ive been moving from place to place as I thought I would be in my new place ages ago.

Thank you in advance

Cakeguts

You are not at the stage of completion. Before the date of completion has been decided you have to exchange contracts. Your solicitor will not exchange contracts until they have know that these restrictions will be removed.



You could have several more months to wait to sort out the restrictions.

Smithyt

Hi,

This is why im getting so frustrated my Solicitor requested funds from lender and said we was going to complete/exchange the same day, funds have now been returned to lender whilst this is sorted out. I do not understand why they would have arranged completion date with this outstanding.

What I am trying to find out is what I can do to get this resolved asap so that I can complete, thanks for the reply though.

Cakeguts

Smithyt wrote: »

Hi,

This is why im getting so frustrated my Solicitor requested funds from lender and said we was going to complete/exchange the same day, funds have now been returned to lender whilst this is sorted out. I do not understand why they would have arranged completion date with this outstanding.

What I am trying to find out is what I can do to get this resolved asap so that I can complete, thanks for the reply though.

You personally can't do anything to resolve this. This can only be resolved by the seller's solicitor. So you will have to wait until they have done it. No one knows how long this will take.

Smithyt

The sellers solicitors are saying that because it’s a mortgage in position sale the title will be wiped automatically though and mine disagree so its like a stalemate and I have no idea who is correct..

Cakeguts

Smithyt wrote: »

The sellers solicitors are saying that because it’s a mortgage in position sale the title will be wiped automatically though and mine disagree so its like a stalemate and I have no idea who is correct..

It doesn't matter who is correct. You are paying your solicitor to protect your interests in this purchase and that it what they are doing. They won't allow you to exchange contracts until they are satisfied. You will just have to wait.

AdrianC

Surely it's straightforward? The vendor's solicitor gives an undertaking that the debts will be paid and the restrictions lifted to allow title to be changed.

The restrictions are the creditors' security for their debt.

Or is there some added wrinkle going on here...?

Smithyt

Thanks for your reply my solicitor did advise me that an undertaking was requested as you have have mentioned but the Sellers side have not agreed to this, I did ask the question why this was which nobody has seemed to answer, and we now find ourselves were we are.

The undertaking was the last thing we was waiting for when my solicitor requested funds from lender etc and as it was refused, this is why exchange completion did not take place.

AdrianC

Smithyt wrote: »

Thanks for your reply my solicitor did advise me that an undertaking was requested as you have have mentioned but the Sellers side have not agreed to this, I did ask the question why this was which nobody has seemed to answer, and we now find ourselves were we are.

The obvious answer can really only be "because they have no intention of paying the debt off"

Smithyt

If that is the case then, I guess all I can do is wait for the land registry process to take place.

Just annoying that this has taken so long to come to light and has extended the timescales massively, and still uncertainty that it will be resolved at all.

Land_Registry

Smithyt wrote: »

I have looked through the title deeds that where sent to me and the restrictions are as follows
05.06.2017 RESTRICTION: No disposition of the registered estate by the proprietor of the registered estate is to be registered without written consent signed by xxxxxxxxxxxxx or his personal representative.

17.06.2016 RESTRICTION: NO disposition of the registered estate by the proprietor of the registered estate is to be registered without a written consent signed by the proprietor for the time being of the charge dated 18th May 2019 in favour of (credit company) referred to in the charge register.

It' important to separate the two restrictions to ensure each is dealt with as appropriate
The second one in favour of the credit company is a standard restriction attached to their secure loan/mortgage. As others have posted that would be cleared (discharged) once the monies have been paid and it's restriction removed as well - an undertaking is the normal route hear so I'm unsure why that is an issue

The first restriction is there to protect the named person's interest in the title. What that is won't affect you providing they consent to the sale (transfer) and provide a form RX4 (they withdraw it) or someone then applies for it to be cancelled using a form RX3 and supporting evidence.

IF it's there to protect for example the restrictioner's financial interest in the title then that may mean they are also reliant on the purchase monies covering that as well. So they may also require an undertaking rather than look to cancel it before the sale happens.

So the order of events and undertakings are important but again as posted these are things the seller has to resolve to your solicitor's satisfaction