Forms required by Land Registry for lease & equity transfer from joint to one name following divorce

Somerset_Alan

Trying to cut down solicitor's costs, already over £2,000 with exactly zero progress made so want to do as much DIY as possible.

BACKGROUND Situation is: 

Couple with young children in shared equity home (50% with joint mortgage, 50% rented from HA as joint tenants).  Divorced (final order issued last year); no financial settlement or consent order, I don't understand why but there it is.  Ex-wife and children remained in marital home, paying rent and mortage single-handed.  Ex-husband living elsewhere, has made occasional sporadic child maintenance payments but more often has borrowed money for his rent, bills etc.  Now has an IVA and has started working abroad.

WHAT THEY WANT TO DO:

Both ex-partners want to get the house situation settled so they can move forward independently.  

They want the ex-husband's name removed from the tenancy, the mortgage and the Land Registry record of ownership.  They would also like a signed agreement covering child custody provisions and financial settlement of the divorce to set everything in writing and avoid future disputes.  

POSITION SO FAR

1) An agreed draft divorce settlement exists but has not so far been signed;

2) On the basis set out in the draft divorce settlement, they have agreed a price for ex-wife to buy ex-husband's share in the equity (25%);  this price takes into account missed child support payments, repayment of various amounts lent by ex-wife to ex-husband, and assessed value of pensions, so it is less than the market value of this share;

3) Existing Mortgagee (bank) says: Need to pay off existing mortgage and start a new one in sole name; Ex-wife has a mortgage offer in her sole name; Solicitor instructed (the same one who handled the original shared-equity purchase and mortgage);

4) HA says they need an Assignment of Lease to change tenancy agreement;

5) Land Registry entry shows a restriction, the Insolvency Partner (IP) working on ex-husband's IVA must be notified before property can be sold.

The solicitor set off as if to deal with a simple remortgaging.  Faced with ponts (4) and (5) above the solicitor has thrown in the towel and wants to be paid. 

MY QUESTIONS:

What documents will the Land Registry ultimately need to see, to amend the details on the register?  And what form(s) will have to be completed?  I can't make sense of the long list of forms on gov.uk.

Assuming the LR needs an Assignment of Lease, signed as a Deed, will it be OK if this is done without the interference help of a solicitor?  We have drawn one up based on examples found online.  Note that because it is just to remove one tenant, some of the clauses found in online examples seem unnecessary and have been removed.  If we get each party to sign with witnesses, is this sufficient? 

Can the change to the tenancy be done separately from the change to ownership (conveyancing), or should everything be signed on the same day?

If the change to the tenancy is done first, separately, what do we need then for the change in ownership?  I assume this will require a contract drawn up by a licensed conveyancer, is this right? 

Can we wait until both the tenancy and ownership have been changed and then notify LR of both at the same time?

Can the conveyancing contract be done separately from a full divorce settlement (i.e. simply noting the price that has been agreed)?

Once the divorce settlement is signed, can it be presented to the Family Court to make it fully enforceable?

I'm sorry about the length of this post, but thought it best to spell out the problem in full.

RHemmings

This looks like a question for: @Land_Registry

Land_Registry

Somerset_Alan said:

Trying to cut down solicitor's costs, already over £2,000 with exactly zero progress made so want to do as much DIY as possible.

MY QUESTIONS:

What documents will the Land Registry ultimately need to see, to amend the details on the register?  And what form(s) will have to be completed?  I can't make sense of the long list of forms on gov.uk.

Assuming the LR needs an Assignment of Lease, signed as a Deed, will it be OK if this is done without the interference help of a solicitor?  We have drawn one up based on examples found online.  Note that because it is just to remove one tenant, some of the clauses found in online examples seem unnecessary and have been removed.  If we get each party to sign with witnesses, is this sufficient? 

Can the change to the tenancy be done separately from the change to ownership (conveyancing), or should everything be signed on the same day?

If the change to the tenancy is done first, separately, what do we need then for the change in ownership?  I assume this will require a contract drawn up by a licensed conveyancer, is this right? 

Can we wait until both the tenancy and ownership have been changed and then notify LR of both at the same time?

Can the conveyancing contract be done separately from a full divorce settlement (i.e. simply noting the price that has been agreed)?

Once the divorce settlement is signed, can it be presented to the Family Court to make it fully enforceable?

I'm sorry about the length of this post, but thought it best to spell out the problem in full.

First thing to mention is that if the ex-wife is going to take a new mortgage then her lender is very unlikely to allow her/them to do this themselves. They are very likely to insist that she/they use a conveyancer
If the property/legal ownership is to be transferred then our online guidance explains how to use forms AP1, TR1 and ID1/ID3 as appropriate - Registering land or property with HM Land Registry: Change the registered owner name - GOV.UK
Sorting the tenancy agreement/divorce are not matters we can assist with, sorry, and very much something to pursue legal advice/assistance on - sorry as can appreciate the issues faced but identifying a suitable conveyancer to cover this all off or a firm of solicitors specialising in both divorce and conveyancing is your best way forward 

Somerset_Alan

"First thing to mention is that if the ex-wife is going to take a new mortgage then her lender is very unlikely to allow her/them to do this themselves. They are very likely to insist that she/they use a conveyancer"

Yes, a firm of solicitors was selected by the lender; these are the people who have so far proved incapable of dealing with a change where the property is shared equity.  But they will be asked to complete the actual conveyance.

"If the property/legal ownership is to be transferred then our online guidance explains how to use forms AP1, TR1 and ID1/ID3 as appropriate"

This is one bit I particularly need help on from LR - I can't make sense of what forms are required in this particular case.  Looking at the current entry in the register, four things need to be changed:

• The registered ownership - to remove one name;
• The particulars to the lease - to remove one of the parties to the lease;
• The proprietors - to remove one name;
• The restrictions - to remove one restriction.
  

So can I ask:

• Can all these changes be made with a single submission, once all the component parts have been achieved?
• Is TR1 the right form, where although the whole of the land is affected, only part of the equity is affected?
  
• What other form(s) will have to be completed?  Is/are there any extra form(s) for the changes to the parties to the lease and changes to the restrictiohns, in addition to AP1, TR1, and ID1s (and ID2)?
• What documents will the Land Registry ultimately need to see, to amend the details on the register? In particular, (a) for the changes to the parties to the lease does LR need to see a Deed of Assignment? and (b) for the removal of a restriction? 
  

"Sorting the tenancy agreement/divorce are not matters we can assist with"

Understood, not seeking comment from LR on these aspects, but more generally from the community.  I might try re-posting separately on this.  Thank you.

user1977

Everything needs to happen simultaneously. There's probably not much point trying to DIY bits of it as the solicitor will also have to check your work anyway.

Somerset_Alan

Everything needs to happen simultaneously.

That was my initial assumption - but surprisingly neither the lender nor the housing association has stipulated this.  They both seem happy to proceed as though the changes are not connected.

The solicitor (or rather, the member of their staff who's not a solicitor but is licensed for conveyance) has said they think the aspects connected with the tenancy agreement are "too difficult" for them, hence the attempt to do that part separately.

I think we'll get the assignment signed up, then hand it to the solicitor and see what they say.  This has been going on since last Spring and everyone wants to get it done.

user1977

Somerset_Alan said:

Everything needs to happen simultaneously.

That was my initial assumption - but surprisingly neither the lender nor the housing association has stipulated this.  They both seem happy to proceed as though the changes are not connected.

I suspect the personnel involved might not really understand the process. The lender relies on the solicitor to sort it out properly.

Somerset_Alan

I suspect the personnel involved might not really understand the process

I think you're right, at least as far as the HA is concerned; they've been unable to provide a statement of the process they need the parties to follow, or the documents they need to see.  Going to send them the Assignment and see whether they'll sign it!  Up until now, all the HA's communications were through the solicitor, and as noted above the person doing the work at the solicitor's is out of their depth. 

re. the lender, I just saw this on another thread, and I feel sure it (and you) are right:

It would be unusual that a mortgage lender is happy to have an unrelated (to their charge) party still on the title - although not unusual that the removal of that party would be dealt with at the same time as that charge being registered

Pretty sure that it will all have to be handed over to the solicitor to complete; but maybe holding their hand and doing the assignment will ease the process!

Land_Registry

Everything will be generally applied for together so you need to establish how the lease is going to be dealt with as well. If it's a Transfer of equity then forms AP1. TR1 and ID1 are needed plus the lender's involvement and consent
The lease might be dealt with separately re a deed of assignment then but that wouldn't change the actual registered details re the original lease as it's still in play
The conveyancer, who the lender will insist on your using, will pull it all together and submit as appropriate

chalky_white_2

The registered shared ownership lease is the 'tenancy'. By dealing with assigning the registered title into the sole name (which would include dealing with the HA's requirements, such as the licence to assign), then the tenancy aspect is also dealt with.

You should look to:

1. Obtain the consent order from the courts - the Court is the final arbitrator and can overrule what is 'agreed'.
2. Confirm the sale terms with the insolvency practitioner, as they may object to any payment below market value. Monies owed to you should be treated in line with all other creditors owed money, and not take a preference. However, they may be unable to object where the transfer (and payment) are in accordance with a court order.
3. Prepare documents for completing the transfer, being the transfer deed (TR1), licence to assign, new mortgage deed, and any other document that may be noted as required (for example, approve of the new mortgage offer by the HA).
4. Drawdown the new mortgage funds and pay funds to ex-partner and to pay off the existing mortgage and complete (date) all documents noted in point 3.
5. Submit the transfer and new mortgage deed to HM Land Registry (the existing lender should notify Land Registry directly of paid off mortgage) and notify the HA that the transfer has now completed and provide a copy of the dated licence to assign and 'notice of transfer and charge'.

It may be worth checking if another solicitor on the new mortgage lender's panel can assist with the transaction, as they must complete simultaneously. To note, while the HA and new mortgage lender may not state simultaneous completion, this will be the case because (1) the HA does not care if it completes, only that you comply with documents it requires on any transfer and (2) the lender will have a condition in the offer that the Borrower is the legal proprietor, which requires the transfer to complete.

Hoenir

Switch to another solicitor on the lender's panel.