Old land charge - company dormant

[markelanduk]

Hi, hope you can help.

I was hoping to exchange on a property yesterday until our solicitor found a land charge on the property we're looking to purchase. This land charge dates to the mid-1970s and the bank/company/lender no longer exists/the company is dormant. The seller is not aware of the existence of the land charge (ugly divorce - the husband used to deal with financial matters), and they have no paperwork relating to the matter. Would you kindly be able to advise how the seller (the wife) goes about removing the charge from the property please? Given the charge is so old, I'd like to think it was paid off but it's a question of finding proof. Many thanks.

[dslippy]

I assume you mean a registered charge at the land registry ('land charge' usually refers to something slightly different). If so then it is for the seller to deal with it. All your solicitor does is to point out top you that you cannot complete without its removal. How it is removed depends entirley on its nature and the facts.

It sounds like a minimum delay of several weeks at best.

[markelanduk]

Thanks for your response. I'm just hoping to understand more about it as the seller's solicitor didn't seem sure themselves.

The document states 'Application for Registration of a Land Charge' and is from 1978.

[markelanduk]

It's a class C (1) charge, BTW, which is apparently a second mortgage. As the lender no longer exists as a company - and as there's no paperwork - I wonder how the seller's solicitor is supposed to rectify this.

[atticus]

There is a great deal of difference between a company no longer existing and being dormant.

A dormant company can awake.

If we are talking about a company that has been dissolved, its assets (including debts owed to it) may have been transferred, or else they vest in the Crown as bona vacantia (orphan goods).

[markelanduk]

I just wish I knew how much the outstanding amount is, assuming it hasn't been paid off already.

I can't believe that there's not some kind of online register showing outstanding debts and who they should be paid to if a company is dormant or dissolved.

[atticus]

You will have to believe that - there is no such register.

[markelanduk]

Does anyone know if the wife - whose name is on the document along with the husband - can accept responsibility/liability for any outstanding monies leaving us free to exchange?

[atticus]

If there is a debt of unknown amount secured against the property, do you really want to be giving this lady lots of money without having the property released from any liability?

[markelanduk]

I was just hoping the property liability could be removed if the wife accepted a personal liability.

[dslippy]

The chances are high that it is a repaid debt. What is needed is someone to sign a release, which will only be done if it can be shopwn that the account is closed.
Most such problems are now resolved by an insurance policy. I am not sure one would be available or acceptable in this case.

[markelanduk]

Thank you for the information.

If a company is dormant, is there any way that you know of to contact them or find someone to sign a release?

[atticus]

Registered Office and directors' details will be shown on Companies House website https://find-and-update.company-info...ervice.gov.uk/

[markelanduk]

Many thanks for your solicitude.

Do you know what happens if no one at the address responds?

[markelanduk]

Also, do you know of any law firms which would specialise in this area? Thank you.