Disposition Restriction found on land registry title during remortgage

n15h

Hi, any help on the below would be appreciated 

I'm going through the process of re-mortgaging for the first time and the solicitor acting for the lender that I am re-mortgaging to, have found a restriction on the land registry property title deed. The restriction is: "No disposition of the registered estate by the proprietor of the registered estate is to be registered without a certificate signed by a conveyancer that the conveyancer is satisfied that the person who executed the document submitted for registration as disponor is the same person as the proprietor."

Having looked at my paperwork when i bought my house 2 years ago, I cannot find any information from the solicitor who handled my property purchase, informing that this restriction was going to be added.

I have a copy of the mortgage deed that i signed during the purchase and there is nothing on it about this restriction.  I have checked my paperwork from when the registration at Land Registry was completed after the purchase and saw the restriction was added to the updated title. My solicitors never made me aware at the time that this restriction was added to the title.

The new lender's solicitor has requested that I obtain a certificate from a solicitor or licensed conveyancer which confirms that I am the registered proprietor and the same person that has signed the mortgage deed, however this would be at my own expense, since the lender's solicitor is only covering standard legal fees.

I have been made aware of a Form RX3 that can remove restrictions. I'm unsure if this will work or will affect the re-mortgaging process. 

I'm unsure if this is a common issue faced by others and if anyone can help on what I should do, that would be appreciated.

Thanks in advance.

Tom99

It's an anti-fraud measure designed to prevent a 3rd party selling or mortgaging your property. Mostly seen on properties owned by companies or non-resident owners but I think owner occupiers can now ask to have the restriction applied at no cost.

I would email a few local solicitors to see how much they would charge you for the ID certificate.

I am sure someone will be along to point out how to remove the restriction but it almost certainly cannot be done without meeting the current ID restriction so you might as well be finding out how much it costs.

Is the solicitor acting for the mortgage co local, could they do the ID check?

Falafels

Can you get the conveyancer who handled your purchase to witness an ID certificate? The Land Registry issue a standard form that you can download; the website won't let me put a link on here, but if you do a search for 'Completing forms ID1 & ID2' on the Gov.UK website, it should come up.

Removing the restriction at the Land Registry will incur a charge, you would still need the ID to process it, and it would make the whole transaction take longer.

davidmcn

Falafels said:

Can you get the conveyancer who handled your purchase to witness an ID certificate? The Land Registry issue a standard form that you can download; the website won't let me put a link on here, but if you do a search for 'Completing forms ID1 & ID2' on the Gov.UK website, it should come up.

I'm not sure that's the same thing. I think that's "I've seen suitable ID for Joe Bloggs", not "this Joe Bloggs is the same Joe Bloggs who owns this property", which is what the restriction wants confirmation for.
We've seen many similar queries about the restriction and it seems to cause endless problems - even the previous solicitors sometimes refusing to certify it.

Linton

davidmcn said:

Falafels said:

Can you get the conveyancer who handled your purchase to witness an ID certificate? The Land Registry issue a standard form that you can download; the website won't let me put a link on here, but if you do a search for 'Completing forms ID1 & ID2' on the Gov.UK website, it should come up.

I'm not sure that's the same thing. I think that's "I've seen suitable ID for Joe Bloggs", not "this Joe Bloggs is the same Joe Bloggs who owns this property", which is what the restriction wants confirmation for.
We've seen many similar queries about the restriction and it seems to cause endless problems - even the previous solicitors sometimes refusing to certify it.

ISTM that there cannot be any foolproof check that the two Joe Bloggs are the same as the only proof that Joe Bloggs owns the house is in the deed itself.  But as the disposition requirement is that the conveyancer is satisfied rather than absolute certainty is guaranteed common sense should prevail.

davidmcn

Linton said:

davidmcn said:

Falafels said:

Can you get the conveyancer who handled your purchase to witness an ID certificate? The Land Registry issue a standard form that you can download; the website won't let me put a link on here, but if you do a search for 'Completing forms ID1 & ID2' on the Gov.UK website, it should come up.

I'm not sure that's the same thing. I think that's "I've seen suitable ID for Joe Bloggs", not "this Joe Bloggs is the same Joe Bloggs who owns this property", which is what the restriction wants confirmation for.
We've seen many similar queries about the restriction and it seems to cause endless problems - even the previous solicitors sometimes refusing to certify it.

ISTM that there cannot be any foolproof check that the two Joe Bloggs are the same as the only proof that Joe Bloggs owns the house is in the deed itself.  But as the disposition requirement is that the conveyancer is satisfied rather than absolute certainty is guaranteed common sense should prevail.

I suspect the issue is that the solicitors don't fancy the risk and/or hassle of simply providing the certificate other than as part of a chunkier transaction - and the remortgage factory's margins won't cover it. 

Land_Registry

Tom99 has covered it for you in his post
The form ID1/ID2 process and our verification of your identity would not work here. The requirements are set out in the restriction itself so a conveyancer has to certify that they have verified your identity. The same applies if you want to apply to now cancel it as well as a certificate would also be required for that too.
The restriction is aimed at those who consider themselves to be at moist risk from property fraud. That would not usually include a person living at the property itself but there is no bar from applying for same. However only the conveyancer who acted for you at the time could clarify why it was applied for. If there was no need in hindsight that would not now negate the need to comply with it now

xylophone

those who consider themselves to be at moist risk from property fraud. 

Going to be soaked?

n15h

Thank you all for your help.

The solicitor acting for the new lender is some 100 miles away. I asked them whether they can assist, however it is not a service they provide.

I have found a local solicitor who can help and am seeing her later this week, so hopefully it all works out with the certification.

I will get in contact with the conveyancing firm that dealt with my purchase to find out why the restriction was added to the title in the first place as I never asked for it, and they never advised it was being added.

Does anyone know if a Form RX3 would remove the restriction?

Falafels

Does anyone know if a Form RX3 would remove the restriction?

The Land Registry rep who posts on this forum could probably help with that.

Land_Registry

n15h said:

Thank you all for your help.

The solicitor acting for the new lender is some 100 miles away. I asked them whether they can assist, however it is not a service they provide.

I have found a local solicitor who can help and am seeing her later this week, so hopefully it all works out with the certification.

I will get in contact with the conveyancing firm that dealt with my purchase to find out why the restriction was added to the title in the first place as I never asked for it, and they never advised it was being added.

Does anyone know if a Form RX3 would remove the restriction?

Form RX3 plus a certificate of compliance re your identity also