• Unregistered Title

    By Guest on 03rd Mar 2017

    When we bought this property we paid the Solicitors to do a first registration. They charged us for this but did not carry this out. After a while we took out a 2nd charge loan against the property. Can a charge/2nd charge be registered against an unregistered title?

  • 2 Answers

    By Guest on 05/03/2017

    The creation of a mortgage is a trigger for first registration so the new lender will insist the title is registered, otherwise its charge whilst binding against you is not binding against third parties, such as for example your buyer if you subsequently sold without paying off the debt. When did you buy the property? Registration became compulsory for changes of ownership across England & Wales in 1998 and it became compulsory for all transactions affecting the legal title in 2003 but actually, registration was compulsory in most areas long before 1998.

    Where there is a transfer of unregistered land where registration was compulsory at the time of the transfer and it is not registered within 2 months then the transfer is not legally valid, i.e. the "purchaser" is not the legal owner. Instead, the seller holds the property on trust for the purchaser.

    In your case this could mean that you have no legal power to sell or mortgage the property. You should find out whether registration was compulsory at the time of your purchase as I'm afraid if it was you have quite a serious, albeit probably rectifiable, problem.

  • By Guest on 05/03/2017

    We fell into arrears with the 2nd charge and we were mortgage rescued in 1992. We still live in our property but we now pay rent. I was just wondering whether the 2nd charge was legal and whether the loss of our property was legal if the property was not correctly first registered.

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