Problem registering transfer of freehold title

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    Problem registering transfer of freehold title

    Hi,

    Hopefully this is the right channel for this question, but apologies if not...

    I'm a leaseholder in a block of about 50 flats, all with about 90 years left on their leases. Last September (11 months ago) we finally completed on a Collective Enfranchisement process that has taken about 4 years to come to fruition. However, now that we've started looking into renewing our leases to 999 year, our solicitors have advised that the Land Registry has actually declined to transfer the title because there is still a charge registered on it by a high-street bank against the previous owner, and we need to get this cleared before we can start the lease extension process (because we can't grant a lease extensions if the Land Registry doesn't recognise our limited company as the new freeholder).

    We have the signed and completed TP1 forms for the original purchase, and we transferred the freehold premium funds last September, but according to our solicitor the freeholder's lender has elected to deal with the Land Registry themselves to release the charge rather than provide us with a DB3 form so that we can do it ourselves. That's all fine and dandy, but the lender is dragging their heels with the process and seemingly not doing anything to actually release the charge, as is evident by the fact it's nearly a year since we completed the purchase (delays caused by the Land Registry themselves notwithstanding!).

    I'm a director of the our new freehold company and I'm engaging regularly with our solicitors to try to resolve the situation, but they've effectively said we're powerless to move this forward until the lender voluntarily removes the charge. I've been told this is a relatively normal situation and I've had a good experience with the solicitor so I don't really have any reason to doubt them, but...

    Are there any steps we can take to force or persuade the bank to speed up their processes to release the charge on the title - firstly from a technical legal perspective, and then also from a practical cost / success rate point of view? I was thinking maybe the FTT or even the FCA or some other industry watchdog might have opinions about how long it's taking the bank to release the charge, but I don't know if that's just wishful thinking...

    Thanks in advance,

    M








    #2
    https://forums.landlordzone.co.uk/fo...-v-s-mortgages

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      #3
      Lawcruncher - thanks for the pointer - I didn't find that post when I was searching...

      So I've looked up and read http://www.legislation.gov.uk/ukpga/1993/28/section/35 and it seems to say that the *mortgage* is discharged on completion, but it sounds like the Land Registry needs some some of official notification of the fact afterwards, via a "Mortgage: Release of part of the land for lenders (DS3)" form (https://www.gov.uk/government/public...or-lenders-ds3) in order for them to believe it and remove the *charge* from their register.

      However, I've just paid £3.00 to download the latest Title Register from the Land Registry site and it still shows the "Lender" as the bank in question, so they've clearly not notified the Land Registry, and that's blocking us from doing our lease extensions.

      Is there anything *we* can invoke as the new freehold company that will allow the Land Registry to unilaterally remove the charge without waiting for the lender to submit a DS3 form? Or are we truly stuck until they get rounds to doing it?

      Cheers,

      M

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        #4
        I would make a complaint to FCA , which is the regulator for conduct of banks and finance related companies

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