Q&As

How can you obtain DS1 forms (notice of cancellation of entries relating to a registered charge) from two mortgagees, where one mortgagee is dissolved and the other mortgagee is in liquidation?

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Published on LexisPSL on 10/11/2015

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • How can you obtain DS1 forms (notice of cancellation of entries relating to a registered charge) from two mortgagees, where one mortgagee is dissolved and the other mortgagee is in liquidation?
  • Dissolved mortgagee
  • Mortgagee in liquidation
  • Discharging a charge

Dissolved mortgagee

According to our Practice Note: Voluntary striking off and dissolution, housed in our Lexis®PSL Corporate module:

'If a company is dissolved while it still owns or has an interest in property, that property will be deemed to be bona vacantia (meaning that it is 'vacant’ and without a legal owner) and will pass to the Crown under CA 2006, s 1012.'

The Government Legal Department (GLD) (which was called the Treasury Solicitor’s Department until 1 April 2015) is the government department in England and Wales dealing with bona vacantia property on behalf of the Crown. Within the GLD, there is a specific Bona Vacantia Division (BVD) which deals with (among other things) the collection of money owed to a dissolved company (and now due to the Crown) under a mortgage.

The GLD/the BVD have issued a guidance entitled ‘Send money due to the Crown under a bona vacantia mortgage (BVC5)’. This guidance states that the BVD has a duty to obtain market value for bona vacantia assets. In the case of mortgages, this involves collecting the full amount outstanding, including interest. Once any outstanding amounts have been repaid, the BVD will consent to the removal of the charge from the title to the property.

According to the guidance:

  1. the BVD will check whether the charge has passed to the Crown as bona vacantia. If the BVD is

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