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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.
May I clarify are you a local government in house lawyer please or do you ask for another reason? The purpose of my question is that it would not be at all usual (if in deed possible) for a member of the public to register a statutory charge.
I enquiring from a local authority (in-house lawyer) point of view.
Please what is the answer to the question?
My apologies for the delay in reverting to you. I have been on an outside appointment with clients this morning. I am available however for the rest of the day. Could you tell me if the person against who the charge is to be made is the sole owner of the property or whether he owns the property jointly with someone else?
Can you please provide answers for both scenarios.
No problem. If the property is owned jointly then the charge can only be registered as a beneficial charge under the provisions of s22 of the 1983 Act by registering a restriction in standard form MM, namely:
No disposition of the registered estate made after the death of [specify the name of the person whose beneficial interest under a beneficial joint tenancy is subject to a charge under section 22(1) of the Health and Social Services and Social Security Adjudications Act 1983], or after that person has become the sole proprietor of the registered estate, is to be registered unless—
(1) the disposition is by two or more persons who were registered as proprietors of the legal estate at the time of that person’s death,
(2) notice of a charge under section 22(1) or (6) of the Health and Social Services and Social Security Adjudications Act 1983 for the benefit of [name and address of the local authority] has been entered in the register or, where appropriate, such charge has been registered, or
(3) it is shown to the registrar’s satisfaction that no such charge is subsisting.
Obviously you will be aware that the restrictions is registered using form RX1www.landregistry.gov.uk/_media/downloads/forms/RX1.pdf
In panel 13 of the RX1 form the local authority must state that no declaration has been made in respect of the residents interest in any other parcel of land.
If the person is the sole owner of the property the charge can be registered as a charge against the legal title. This can most simply be registered either using an agreed notice with the owner using form AN1 or if the owner will not or cannot agree using form UN1.
If you are using an agreed notice with the agreement of the owner or attorney then this can be registered together with a copy of the declaration of charge and the same declaration that no declaration has been made in respect of the residents interest in any other parcel of land.
If you are using the UN1 form without the agreement of the owner then you need to set out a conveyancers certificate in panel 13 detailing the Ac the charge is made under, the date of the charge, the name of the person whose interest is charged, the property charged and that no declaration has been made in respect of the residents interest in any other parcel of land.
Is there anything above I can clarify for you?
Is there anything else I can help you with?
If there is a deffered payment agreement in place, can this suffice as the owners agreement? Also under what circumstances do you use an AP1 and/or CH1 form?
It is possible to register the charge as a registered charge as opposed to a notice. In either event the house cannot be sold without the councils consent. If the LA prefers it can register the charge as a registered charge if the property is solely owned and in this case you use form CH1 instead of AN1 or UN1.
An AP1 application is required for some applications in addition to one of the above forms. If an AP1 application is required to accompany the form the notes on the left hand side of the form confirm this.
Thank you for your assistance. Your answers are helpful.
A pleasure. If I can assist any further as the situation develops please do no hesitate to let me know.
Before you go, please clarify the position in relation to the deferred payment agreement.
Should the declaration of charge be contained in the Deferred Payment agreement?
My understanding it is common practice for a local authority to include a provision in a deferred payment agreement giving consent for a charge to be placed on the property in question. I do not believe this is strictly necessary as the right to take a charge is contained in legislation however it seems to me a matter of good practice for the sake of an additional clause on the basis the agreement is to be signed. If it has already been signed and there is no such provision however I do not believe this is fatal because as above there is a right to take a charge under legislation
Does the above answer all your questions or is there anything I can clarify or help with any further?
I am happy with your answers. Thank you very much.
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.