Repaying Help-to-buy - Land Registry Deed Issue

Krypter

Hello,

I’m seeking advice on repaying my help-to-buy loan in full before interest starts accruing in December when my Land Registry Deed isn’t in my name.

I have the funds available due to accumulative savings over the past five years and can provide transaction history. I’ve paid for a RICS valuation report, which Help-To-Buy has accepted until October 21st.

The problem is that the Help-To-Buy repayment process requires solicitors to be instructed to work on my behalf, which I did. Still, they found that my previous solicitor didn’t submit the land registry application on completion of the property. Therefore, the deeds are still in the property developer's name, even though I have email confirmation that this was sent and received completion certificates from the council/developer, etc. This has caused my current solicitors to inform me that they cannot continue to work with me until this is rectified, and perhaps previous solicitors could work with me due to the error.

My previous solicitor firm has apologised but said they would send this off ASAP. However, they couldn’t fast-track it because I'm not going through a “full remortgage”; I’m doing a product transfer, which could take 12 months. They haven't taken over the process and said they would contact “the same email address that they dealt with when you purchased the property asking for assistance”.

I’m now in a weird situation: I want to pay back my loan; payment details are on the GOV website, but I am stuck between two law firms speaking legalities and admin errors. I will likely run into additional costs around interest payments on my help-to-buy loan or have my RICS valuation report become invalid, and I must get a new one.

Have you encountered this situation before, and can you provide any advice?

silvercar

I would ask your previous firm to expedite it on the grounds that your help to buy offer has a limited timescale. I would also be seeking any extra costs you have incurred as a result of their mistake. This means if you miss the October deadline due to their mistake, they should pay all the costs you incurred as a result. Fast tracking is a request to expedite the registration with Land Registry. There is no reason that they couldn’t ask for it to be done, though LR have the option to refuse.

Five years is a long time to fail to register a property. Given that they also act for the lender in registering their charge, they are responsible not just to you for getting it right. Apologising and saying they will do it asap, isn’t really enough imho.

I do wonder if, given you are now clearing the HTB loan, you could do so and the solicitors then have no need to register it at all. You could start a conversation that you don’t want to take the HTB loan and see where that goes. After all any papers you signed are now 5 years out of date, so requiring you to sign again gives you the option to decline. 

You need to be assertive with this firm. Either they agree to cover all out of pocket costs by their delay, or you will make a formal complaint and they will incur investigative costs with the ombudsman if you can’t reach agreement. All legal firms have professional indemnity policies to cover their mistakes, their premiums depend on their claims history, so they should be eager to settle with you.