Mark in land registry and freezing money from sale

[theenquirer]

Hello,

I own a house, solely in my name, and I was about to sell it when somebody went to the Land Registry and applied for a 'restriction' or 'mark' of interest in the house saying that they are entitled to money from the sale of the house. As a result of this application, which is pending, the Land registry 'froze' the Title and the sale cannot proceed. The application may fail, especially if I challenge it succesfully or it may succeed.

The other side did not follow the correct protocol and did not tell my solicitor or myself that they were going to do this with the Land Registry.

They have threatened that, if I challenge the Title matter and I succeed or if the Land Registry dismiss the claim, they will go to court and ask for the sales proceeds to be frozen in a bank account until they make their claim through the court. This could fail too. But I have been told that they could claim legal costs against me for the application to freeze the money.

But, what if I manage to get the application for interest on the property title not applied and I do not sell the house. I pull out of the sale and even tell the other side that there is no sale. I will them bide my time to sell it, until I win in court that is.

In this case, if there is going to be no sale, do they have an excuse to apply to the court to freeze money from a (no) sale? If they go and spend the money in the court application, will it be their waste of money as I stopped the sale?

Thanks in advance.

[MissFM]

Re: Mark in land registry and freezing money from sale

Hello Theenquirer and to LB

Does the person applying for the restriction have any right to do this (any legal/financial interest in the property)?

[theenquirer]

Re: Mark in land registry and freezing money from sale

Hello Miss FM,

Thanks for the welcome banner.

Well that is the thing. I say no, they say yes. It is financial, they say they invested. The matter will have to be resolved in court. Supposing they have 1% valid interest but then I have interest in their assets too. That is why it has to be resolved in court.
But my specific question is if they have a valid reason to apply for the sale proceeds from the property to be frozen, if there is no sale or if I undertake not to sell the house until the matter is resolved. But I still want the mark or interest in my property removed.

[enquirer]

Re: Mark in land registry and freezing money from sale

How did you acquire the house?
Is the person who has placed the Restriction on the property known to you?

[theenquirer]

Re: Mark in land registry and freezing money from sale

How did you acquire the house?
Is the person who has placed the Restriction on the property known to you?

I bought it with my money from a previous property solely in my name. The house was derelict. I invested a lot of money and work refurbishing it for profit for my family. The other person is know to me but I cannot say who in case they identify this thread.

I still need an answer whether they are allowed to ask for the sale money to be frozen if the house is not being sold.

Thanks