Charge on a property but lender can't be found.

RonsDaughter

Any insights appreciated please! I can only give scanty information so this is all I am currently aware of...
I am purchasing a probate property but my lender has found that there is a charge against it because the deceased owner had taken a loan secured on the house. The finance company Reid was taken over by or renamed Sun Securities (Poole/Bournemouth) but they no longer exist and no-one can find any evidence they ever existed.
I understand that the sellers have proof the loan was repaid but Reid/Sun did not tick the relevant box and the Land Registry won't/can't deal so the sellers solicitor has referred it to the Treasury.
Can anyone explain what is likely to happen next please?
I'm wondering whether to cut my losses?

user1977

If it's been referred to the Treasury Solicitor that means someone seems to have reached the verdict that the charge was last held by a company which is now dissolved? That is progress of sorts, though I have encountered difficulty with such cases because the Treasury took the view that they can only deal with assets held by the dissolved company - so they can discharge the security if in return they're receiving redemption of a loan, but can't sign a discharge if there's nothing actually due to them. Don't know whether that's still the case. Ultimately a court can get it discharged.

RonsDaughter

Thank you user1977
I understand the documents show Reid financed the loan. They became, or were taken over by Sun Securities. Apart from the receipt there is no evidence that either company ever existed. 

user1977

So there's some doubt about whether these were ever UK limited companies? Are these names the only details, no full company names, numbers, addresses etc? What era are we talking about?

RonsDaughter

I understand Reid and Sun Securities were both based in Poole, Dorset.
The loan was 10-20 years ago.
The sellers solicitor has checked Companies House but it seems they have concluded the Sun Securities listed is not linked to this
I checked https://find-and-update.company-information.service.gov.uk/ but no luck there either.

If they have evidence the loan was repaid wouldn't the Land Registry be able to remove the charge whether the company still exists or not?

GDB2222

You don’t have to worry about any of this detail, as it’s the responsibility of the seller to get the charge removed. 

Your only problem is the timescale. If the treasury solicitor is prepared to remove the charge, that would be quick. The seller just needs the completed form. It does not need to be removed at the land registry, as that can be done at the time of registration of your purchase. 

On the other hand, if the treasury solicitor refuses, and the sellers have to go through the court system that will take months. 

GDB2222

When you say cut your losses, you don’t need to withdraw from this purchase. You could tell your solicitor not to do more work until the seller has sorted out the charge. At the same time you can start to look at other properties. If you find something that you prefer, then you can decide what to do. 

RonsDaughter

GDB2222 thank you, that is more encouraging!

user1977

RonsDaughter said:

I understand Reid and Sun Securities were both based in Poole, Dorset.

So you don't have exact details of who the chargeholder is?

If they have evidence the loan was repaid wouldn't the Land Registry be able to remove the charge whether the company still exists or not?

No, it takes a court action. And "the loan was repaid" isn't necessarily reason enough for the security to be removed.

RonsDaughter

I understand the loan was taken out through Reid but Reid changed hands and became Sun Securities. The loan was repaid to Sun Securities so would they be the charge holder? I don't really have much more info though I think someone said something was unregistered...
Re the repayment, apparently there is a receipt/proof of payment or other paperwork to prove repayment (with no address) so I don't really see why there is a problem but the Land Registry wouldn't deal with it and referred the seller's solicitor to the Treasury. 

GDB2222

There’s a a Land Registry representative who visits the forum, and he can explain their processes. However, I’m not surprised that a receipt is not enough to get the charge removed.