The following Property guidance note provides comprehensive and up to date legal information covering:
As of 3 August 2009 HM Land Registry has applied a policy of early completion to applications to register a new owner (and their lender) where there is no immediate evidence of the redemption of the existing (seller’s) mortgage. Early completion applies only to applications for the transfer of the whole of a registered title (not part) but HM Land Registry will keep this position under review.
In most cases HM Land Registry will no longer sit on the application until evidence of redemption is produced. Instead, they will register the transfer to the new owner and the new charge, without first removing from the register the entry protecting the seller’s existing mortgage. This means that the buyer’s lender will be registered as second chargee unless and until the evidence of discharge of the first mortgage is presented. This will breach any undertaking given by the buyer’s solicitor to the new lender that its security will be a first legal charge.
However, in some cases (where there is a restriction on title), failure to produce evidence of discharge of the seller’s mortgage within one month of submission will lead to the cancellation of the registration application. This will expose the buyer and its lender to the possibility that the priority period conferred by the pre-completion search expires before the application can be re-submitted
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234