• Cant Buy A House As The Seller Is The Wrong Person On Land Registry

    By Guest on 08th Jul 2016

    I have put an offer in on an empty house that is 7 years old, and we are first time buyers so should have been a quick sale.
    Through documents sent to us by our solicitors we found out the house was a repossession. Our solicitors has found out that the house is still registered under the name of the man who built them and not the bank that repossessed them so we cant proceed as it is illegal.
    The sellers of the house (the bank) are refusing to change the name over as they have sold the identical house next door without changing the name over.
    Our solictior wont proceed without the name and the bank refuse to change it and now our solicitor and estate agent are being ignored by the seller.
    We have paid a £500 reservation fee for the house so if we pull out of the sale we are stuck.
    Any ideas?

  • 1 Answers

    By Guest on 08/07/2016

    It is only ever possible to answer these questions in general terms because of course without access to the files one doesn't have all the facts. When a property is purchased with a mortgage the lender will register a charge against the title. If the borrower then defaults on the mortgage the lender make take possession of and sell the property. This power arises under section 101of the Law of Property Act 1925. Where a lender sells in exercise of its power of sale the buyer (by virtue of s104(2) Law of Property Act 1925) need not be concerned as to whether the power of sale has in fact arisen. The purchaser from a lender selling in exercise of its power of sale takes the property free from any interest of the registered proprietor and any mortgage or charge created after the date of the lender's mortgage. The lender doesn't have to register itself as proprietor to sell and in practice it never would. It simply needs to execute form TR1 (or TP2 if it is selling the property off in lots such as plots on an estate) in favour of the buyer.

    As I say the above is a generally commentary based on standard assumptions and there may facts peculiar to your case that materially affect the position

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