Caution Against First Registration On Unregister Land

[jdjohn]

We are trying to sell a property that is at present in a very poor state, and their is a caution against first registration, and the amount required is more than the property can sell for, after the mortgage is paid no further monies would be available ( ie negative equity). Can this caution be removed to enable a sale to complete by a mortgagee in possession

[tonywiltshire]

A caution on first registration on unregistered land is usually to protect the interests of someone who will probably be named on the caution and at registration will be picked up by the person making the searches. I would not suggest you seek to remove this caution title which will have a separate registration, take legal advice.

[buildersmate]

Any land transfer (sale) of unregistered land (in England &Wales for sure) requires that the land is registered at LR first. So a creditor has presumably done this to prevent a sale without its knowledge - probably the mortgage company. I`m not sure what you would be trying to achieve here - the debt has to be repaid.

[Eve]

Much more information needed.

If you are trying to sell then are you the mortgagee in possession?

If you hold a charge, what ranking of charge do you have (first, second, charging order?).

Who has the benefit of the caution and why?

If a mortgagee in possession has a right of sale then certain interests (I'm not saying this is one of them) can be disregarded and the sale is done under a different form of transfer (TR2) and able to be registered at the Land Registry.

This is a guidance booklet but it's more for practitioners. See, in particular, 3.2.9 "Cautions in the proprietorship register".

You should obtain proper legal advice from someone who has all information available to them.

[Eve]

Sorry, link would help!

http://www.landregistry.gov.uk/professional/guides/practice-guide-75

[jdjohn]

Property to be sold as first mortgagee in possession, caution is for care home fee's and the person in care has now died

[Eve]

Well, I imagine that you will be subject to any purchaser's solicitors' checks so will need to have the position sorted to ensure them they will not have any problems with registering the purchase and the property at Land Registry.

As you are asking on here I and you say you are the first chargeholder then I'm guessing you are not a mainstream lender. All the more reason to get things done properly.

I'd have a check with Land Registry themselves and would recommend decent legal representation to check everything out for you with the benefit of having seen all the relevant information.

[themas]

1. If you granted the mortgage (I assume you did as you are the first chargeholder) how did you come to do so without making sure the property was registered at the time?

2. Have you discussed the position with the care home? If, as you say, there will be no equity for anyone other than you when the property is sold their caution will presumably end up being worthless. If you can provide them with proof of that, maybe you could get them to remove the caution (with you paying their reasonable costs).