Land Registry launches early completion practice

07 May 2009



In a bid to make sure registration applications are made on time, the Land Registry has announced it is to launch an early completion practice. The measures are hoped to lead to more applications being completed as quickly as possible.

The practice is due to come into effect on 3 August and will apply to any situation in which an application for a discharge of whole has been received alongside another application, but evidence of the discharge was not present. Figures from the Land Registry suggest that in 2006/07, delayed discharges cost the body - alongside lenders and conveyances - a minimum of £7 million, which is then passed on to customers through related fees.

Through the new practice, the Land Registry will be able to reject an application for discharge, but is still able to accept other applications where it is possible to do so. Once proof of satisfaction is received, entries made in connection with the existing charge will be left in the register.

Chris Hardy, partner in the residential property practice group comments: "The Law Society was consulted by the Land Registry and indicated that it was not in favour of this proposal. Despite this, it is going ahead with effect from 3 August 2009.

"The cause of the problem is that mortgage lenders are very slow in sending the necessary evidence of discharge to the land registry once a mortgage has been paid off. Without that evidence, the Land Registry will not complete the registration for the new buyer, but now proposes to do so leaving the old mortgage on the title.

"This clears the matter from the Land Registry's desk but will cause confusion and difficulty from our point of view, as the title document will not be satisfactory to our clients and their lenders until that old mortgage is cleared. It would have been better had they exerted pressure on the lenders to act more promptly."

If you require legal advice, for either your private affairs or organisation, please call Gerrards Cross based B P Collins Solicitors on 01753 889995, complete the online enquiry form or email enquiries@bpcollins.co.uk.

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