Help with Welcome Finance....long post!

[miliitant]

Re: Help with Welcome Finance....long post!

if it is not registered as a charge with the land registry then NO, it is not a secured loan but an unsecured loan

have you done an up to date search then on the property to confirm, if no charge then you can sell or apply for a second charge

[m2000]

Re: Help with Welcome Finance....long post!

I have tried to find an answer online regarding my issue of the charge which appears on land registry being the charge for the original loan, a new charge was never put on and the original one remains despite that loan being cleared when taking out a new loan and a separate charge document being signed.

Can anyone confirm if the charge n land registry has to relate to the new loan account rather than the old one. Also,is there a time limit within which the lender has to have sent in the signed legal charge document to land registry offices? Surely a document has a prescribed time limit to be placed within?

Thanks

[miliitant]

Re: Help with Welcome Finance....long post!

if a loan was cleared then the charge needs to be removed. if you took out a new loan then welcome would need to register a new charge as the first agreement no longer is in force. this will cost welcome and it would have been you that would have had to foot that bill. all you need to do is contact the land registry, show them the loan agreement and confirmation from welcome it has been cleared, they should then remove the charge. its welcomes lookout if they did not register the second loan .

the only other option would be the FOS, to get them to look into it

[Ruby]

Re: Help with Welcome Finance....long post!

Many thanks for that M. If I was to re-mortgage or move undoubtedly the new mortgage company would also check our credit records and on that, these two companies in question call themselves 'second mortgages'. Can I assume the new mortgage company would question that and possibly get in contact with the 'second mortgage' companies and question what is going on? Also, these 'second mortgages' were taken out 5/6 years ago. Can the companies in question 'rectify' their mistake after all this period of time and register their interest with LR?

Incidentally I only checked the LR records a couple of weeks ago.....

[miliitant]

Re: Help with Welcome Finance....long post!

The new mortgage company would do a search to see if their is a second charge registered at the land registry. If no second charge was registered then they will allow the loan and its welcomes tough luck. You will have done nothing wrong as it would be welcomes responsability to register the charge

welcome would be unable to introduce a second charge at the land registry unless you signed the document allowing them to do so when you signed the second loan with them

[Ruby]

Re: Help with Welcome Finance....long post!

Is there a time limit that they have to register their interest......

[Nikolai]

Re: Help with Welcome Finance....long post!

The original charge which was registered at LR is sufficient to secure any monies outstanding to the same lender and it makes no difference that you've repaid one loan and taken another.
They won't bother to cancel (correct term is "vacate") the original charge and put another in place because that would mean them having to pay LR fees.
I think generally there's a 30 day limit for registration at LR following any "disposition" of the legal estate, but exceeding this limit does not render the registration void or make the document triggering the registration unenforceable. If you have any doubts phone the LR enquiry line and ask them to explain it to you. They're usually helpful.

[Ruby]

Re: Help with Welcome Finance....long post!

What if the secured loan in question was not registered with LR and now has been sold to a third party ie. a DCA? I have signed a document with the original lender to secure it on the house. The document has the orignal lenders name on it not the DCA. Can the DCA put their interest on the LR? The DCA has said that they now own all the legal rights to the loan.

[dogtired]

Re: Help with Welcome Finance....long post!

It would be interesting to find out Ruby.

[Nikolai]

Re: Help with Welcome Finance....long post!

From a contract law point of view, if the DCA has legitimately acquired the loan by means of a legal deed of assignment, it acquires all the rights of the original lender. I've come across a secured lender (Lender A) selling a loan to another company (Lender B) and B then enforcing the security by selling the property. The original charge registered at LR by A remains unchanged in that situation, and is not altered to reflect B's position. All that I was aware of in that case was a letter written by B to the borrower saying that B had bought the rights to A's secured loan.
Your question is different in that the original lender didn't register its legal charge on the property (very unusual). If that is the case, the loan is unsecured until such time as the original charge is registered. If the property is sold (or I suppose re-mortgaged) in the meantime, the lender loses out as it has no security.
Can the DCA in your case register the original lender's charge at LR? I've not had experience of this happening, and I'm not sure to be perfectly frank, but the DCA can't register its own interest at LR because the DCA wasn't a party to the original charge. Any registration would have to be of the original charge in the name of the original lender. As the DCA apparently has all the rights of the original lender, that suggests they can register it. (They might not have worked this out for themselves.) Sorry I can't be more precise, bit rusty I guess after 5 years out of the game!

[Ruby]

Re: Help with Welcome Finance....long post!

As the DCA apparently has all the rights of the original lender, that suggests they can register it. Under what name?! The deed of assignment is not in the DCA's name and the account is now sold .........

I will obviously not be fueling knowledge to the DCA. Pity I love my home and am very settled otherwise I would sell up and run laughing...........

[dogtired]

Re: Help with Welcome Finance....long post!

I would love to do that as well Ruby, welcome especially they have caused all sorts of problems.