Ask an Property Solicitor. Get an Answer ASAP.
Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.
What is the nature of the entry on the register please? Is it a restriction or a formal legal registered charge?
What is the relationship between you and the property owner in question? Do you hold power of attorney for them?
Why do you consider they lacked capacity at the time? Was any money given in consideration of the charge - e.g. a loan?
Hello - it is a formal registered charge. It's not a mental capacity issue. The people that consented did not have capacity in that they were not directors of the company which owned the property. The charge is in the name of a bank which gave the people a loan.
I hope I've answered your question!
Thanks - that is very helpful. Who were the individuals in question that signed the charge deed in relation to the company if not directors please?
I'm afraid I do not know.
Thanks so do I understand that you believe this effectively to be a mistake whether deliberate or accidental that the charge has been registered against your company's property in relation to money given to someone entirely unconnected with your company? Do I also presume that you are a director of the company property that has been incorrectly charged?
Yes I believe it to be a mistake. I am not a director myself. I am just trying to help a friend by pointing in the right direction.
If this is complicated, I will tell them to go to a solicitor
I thought it would take me 5 minutes to look up on google
Thanks. The starting point is relatively straighforward...
Your friend (who is a director or failing which a director of the company will need to consider completing form DS1 and writing to the bank in question setting out the position as he understands it and stating that his company never benefited from any loan or money from the bank and in deed had no contact with the bank in relation to any loan or money.
On this basis he is enclosing form DS1 and requests that the bank executes it within10 days in order to remove the charge at H M Land Registry or failing which adduces evidence to support their claim to have lent his company money. In addition your friend will wish to aver that the charge deed has not been signed by any officer that was a director of the company at the time nor in deed any party that has ever had any connection with his company if that is the case.
The bank will no doubt investigate the matter. If they accept that a mistake has been made then all that needs to happen is for them to execute the DS1 form and for this to be sent to the Land Registry for it to be removed. If the charge has also been registered at Companies House this will also need to be notified to remove the registration.
what if the bank says no and refuses to accept the mistake?
does it go to court?
If the bank refuses to sign the DS1 then your friend can initially consider making a report to the Registry of a potential fraud against his company's property. The Registrar can investigate and has the power to rectify the register if he finds that there has in deed been a fraud. This will be done in concert with asking the bank for information.
He can contact the Registrys suspected fraud line on 0300(NNN) NNN-NNNN/strong>
If the bank is able to produce information that suggests there is a link between the loan and his company though as you say this is presently not thought then the issue may have to go to court to be resolved but this would be something to consider only if the above steps are not successful in resolving the matter.
Is there anything above I can clarify for you any further?
I will just have a read and check I understand
Certainly. If I can assist any further as the situation develops please do no hesitate to let me know.
just one question
on the land registry website
I think it says that DS1 needs to be sent in with AP1
Would you say both of those forms should be sent to the bank
and then to the land registry if the bank refuses to agree there was a mistake
No the application form (AP1) does not need to be signed by the bank. Only the DS1 requires completion by the bank.
So when do they use the Ap1? sorry to be dense...
If the bank agrees to sign the DS1 it must then be sent with an application form (AP1) to the Registry to remove the charge. It is the applicant (your friends company) that completes the AP1 form.
Does that all make sense?
Yes that's perfect. Thank you.
I will authorise payment
thank you for your assistance
you were very clear
A pleasure. Many thanks
If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with though please reply back to me though.
Alright thank you
will this conversation be made public?
as in will it be available to others to read?
I haven't used any names though so I think it is ok
This website is not secure though there is no personal information disclosed that I can see. I can ask customer services to lock the thread if you wish which will prevent any third party access?
No that is fine, thank you very much. I didn't name anyone so it is alright.
Thanks for your help.