Loan not shown on title on land register

ruth56_2

We paid for a house for our son. Did a proper loan agreement and the solicitor handling the purchase was specifically asked to put a charge on the land registry. On checking the title, there is no charge on the property......it is shown as title absolute in my son's name only. The purchase was made in September 2023 and is all recorded other than the charge. Should it be showing as a charge by now or is this done separately from the purchase? Silly question to most but want to be absolutely sure. We have decided to gift the loan to him in the next year so any charge would be removed anyway. 

Keep_pedalling

I would have thought the charge should have been added at the same time, but if this is a mistake by your solicitor and they never applied for the charge to be put on it could work to your advantage as far as IHT planning is concerned, as the 7 year rule clock on your gift will have started much earlier.

What is the reason for delaying the gift for another year? For large gifts the earlier yo7 make them the higher the chance of gift not being subject to IHT.

ruth56_2

Our son is vulnerable and he was being taken advantage of by a group of "friends" so we wanted to ensure that he had no current control of the selling of the property. The situation has resolved now, we think, so we are happy to remove the charge. The purchase was made using the proceeds from a property owned by us, thus the loan was legitimate. But if the solicitor never registered it with the purchase, we won't have to "remove it"! Very annoyed if he didn't as we paid extra due to the loan being part of the transaction,but may work out ok. 

Green_hopeful

I loaned my son the money for his flat. I have a mortgage registered with the land registry to protect the money. I don’t think my son will get into financial difficulties but he can make mistakes and I wanted to protect both of us from him been taken advantage of. I would go back to the solicitor and ask them to resolve it. 

AskAsk

My husband looked into lending money to his dad to buy a house and we found that the conveyancer can not do the charge as there are laws in the UK for lending so we had to instruct a specialist solicitor who does equity loans, who would do the charge separately to the purchase.

They said that the law in the UK for lending is very strict so it is not always possible to claim the money if the other person disputes it, even if it is a charge.  A charge can also be non registered, which may be the case for you.

We found from our experience, that it is not as easy as we had thought with putting a charge on a property through a loan.  The purchase never went ahead as the purchase fell through.

user1977

It may be following on. Why not just ask the solicitor?

propertyrental

What explanation has your original solicitor given you?

ruth56_2

Waiting for reply from the solicitor. 

Southend_2

We completed a sale and purchase 1 September 2023, the sale was showing on the land registry within 3 months however our purchase still isn't showing up yet. Could just be land registry delays, but worth confirming with the solicitor