Property - Errors

What is the process for discharging a mortgage?

1. Determine who mortgage is in favour of

2. Obtain redemption figure from bank

3. Ensure seller is happy to pay redemption figure

4. Pay off mortgage on completion

5. Give mortgage discharge certificate from bank to buyer’s solicitors to apply to discharge the mortgage to the Land Registry

What is the process for obtaining mortgage monies for a new property?

1. Contact Bank with proposal

2. Clarify with Client that we do not provide financial advice and recommend speaking with independent financial advisor

3. Confirm date for transferring funds (usually minimum 5 working days)

4. Explain this info is located on UK Finance website

5. Explain that the solicitor also acts for the lender and must comply with regulations

6. Confirm sufficient notice for mortgage funds to arrive before completion

What must you send as evidence to register a new mortgage?

The signed mortgage deed

What must a letter state where it indicates a person will not obtain an interest in property?

1. Name

2. Address of Property

3. Amount of Gift

4. Confirmation the amount is a gift and there is to be no repayment

5. Confirmation the donor will not gain any interest

Which conveyancing devices may be used to restrict other parties?

1. Restrictive/ positive covenants

2. Grant or reservation of an easement

3. Licences

4. Compulsory renewed covenants

5. Estate rent charge

Do positive covenants bind successors in title?

No and so the beneficiary should obtain an indemnity agreement or a compulsory renewed covenant

What is a compulsory renewed covenant?

When a restriction is placed on the register that the property cannot be transferred or subleased without the new occupant confirming the original positive covenant

What are the two types of easement?

Grant and reservation (both must be created by Transfer Deed)

Where do covenants, easements etc appear on the Official Copies?

In the Charges Register of the burdened land and the Property Register of the benefitting land

What are the requirements for an express easement?

1. Dominant and servient tenement

2. Easement must accommodate the dominant tenement

3. Tenements must be different pieces of land

4. Right must be capable of forming the subject matter of a grant

5. Duration must be freehold or leasehold

6. Must be created out of a legal estate

7. Must be completed by registration

How do you make a covenant?

By deed

What is the key difference between positive and restrictive covenants?

A positive covenant does not bind successors in title

What are the key characteristics of a lease?

1. It is for a determined period

2. It gives the lessee exclusive right of possession

3. Is a legal interest

What does an estate rentcharge permit?

It requires the burdened landowner to pay a sum to the benefitting landowner for the purpose of performing a certain act ie maintaining shared areas. If the benefitting landowner does not carry out their obligation the burdened landowner may enter the land, carry out the works and recover the resulting costs