Land Registry - Removal of Charge when owner of charge cannot be found

ewainwright

I am selling my deceased parents house and there is a historical charge for £1200, on the house relating to the initial (private) mortgage from 1965. The person named on the charge died in  early 1966. The mortgage would have been paid, but there are no records, 

The executors listed on the will of the original seller of the house, seem to have died many years ago (as expected for a charge almost 60 years old); the one beneficiary on the will of the original seller, also seems to have died.

Apparently the land resister wont cancel the charge without the executors signing a form, but since they are dead that isn't possible and the conveyancers  don't seem to be progressing with anything.

Is there a way for the sale to continue with the charge being paid to the crown, so it goes into the vacant estates pot or can the land registry cancel the charge in the absence of the executors signing a form?

silvercar

What does your solicitor say?

and paging @Land_Registry, though you seem to understand their position.

user1977

I suspect the answer is going to be a court action. The Crown can only collect the debt if they know that the debt is actually due, which doesn't seem be the case here - and I think they'd want to know that the creditor really can't be traced, rather than just nobody can be bothered finding out (by "person named on the charge" do you mean the creditor rather than a previous owner of the property?)

silvercar

If the mortgage was taken out in 1965, it is unlikely it would have been repaid before the charge holder died in 1966. So you are initially looking to see if the benefactor of the deceased actually did receive payment, with a private mortgage it could be the benefactor was unaware or that there was something in the will of the deceased that turned the mortgage into a gift or specified who should benefit from repayment of the loan. 

You could be looking for 2 or 3 generations on from the original mortgagor.

Land_Registry

The charge forms part of the deceased lender’s estate until dealt with. If their executors didn’t deal with it and they’ve all died you need to consider whether a chain of representation exists. Essentially executors for executors and are they alive and able to deal with it. 

It’s all a Q of probate law and if a chain of representation doesn’t exist then you may have to look at someone applying to alter/amend the original probate so someone can deal with the charge 
It doesn’t read like a matter for the crown to deal with but probate law, not land registration, is where the answers will lie. 

GDB2222

I'd happily buy a house where there's potential for someone to claim a fixed £1200 charge. I'd just reduce my offer by £1200.

The real issue is that the Land Register doesn't specify the amount of the charge. 

silvercar

GDB2222 said:

I'd happily buy a house where there's potential for someone to claim a fixed £1200 charge. I'd just reduce my offer by £1200.

The real issue is that the Land Register doesn't specify the amount of the charge. 

Would there be interest due? Also, you may be happy, if you need a mortgage the lender may not be happy to become the second charge even if the amount is small.