Removing Registry restriction from liquidated company

by Readers Question

7 months ago

Removing Registry restriction from liquidated company

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Removing Registry restriction from liquidated company

I am in the process of selling my house and our solicitor has advised that there is a restriction on the property from the original builder Bellway homes, however they cannot help because they lost interest in the house when they sold it in 1991 after completing the build of the development.

We are now been told that a company called “ABACUS LAND 1 (PROPCO 1) LIMITED” actually added the registry restriction, but they were liquidated earlier this year so I’m wondering how can we get this restriction removed when the company doesn’t exist anymore, would the land registry simply remove it themselves?

This is the restriction;

“RESTRICTION: Except under an order of the registrar no transfer or lease is to be registered without the consent of Bellway Homes (West Midlands) Limited or the registered proprietor for the time
being of Title Number xxxxxx ”

Many thanks

Benjamin



Comments

Nick Pope

7 months ago

Firstly I suggest you contact Bellway Homes again. It is likely that the company mentioned in the restriction was used for this particular development. This is common as builders want to be able to treat profits/losses separately for each site. II don't suppose that they have anything to gain by preventing you selling. You need a letter from them to confirm that they relinquish all benefit to the restriction.
Next, talk to the solicitor. Such restrictions are common and where the person/legal entity with the benefit no longer exists, as in this case, then you can get an indemnity insurance which will normally satisfy a buyer, their solicitor and the mortgage lender if there is one. Costs for the insurance vary but are normally in the few hundreds rather than thousands of pounds.
If all else fails then the wording of the restriction suggests that the Registrar can remove the restriction and whilst there may be costs involved it would be ridiculous to maintain an entry which is obviously redundant.

Edwin Cowper

7 months ago

Suggest this may be the way forward:
1. The consent is required from a named limited company
2. A search at companies house will show whether that company still exists. If it does not then simply produce the search to HMLR
3. One issue whether it turns up at CR or not to follow is: the company may be the selling company which transferred the plot. So order a copy of the transfer from the land reg. It should show the company number. Thats what is important. If that company number shows up there is still a company which needs to consent.
4. Don't yet see where this other company turns up - if it is a beneficiary in place of the original company there must be evidence. If it has gone bust - provide the coy search evidence to the registry

Jay James

7 months ago

Hi Benjamin
The registered proprietor of the relevant title xxxx must be contacted and negotiated with, (whether or not it turns out to be Belway or Abacus or some other entity). Check who or what that is.
From what you say, ABACUS LAND 1 (PROPCO 1) LIMITED may or may not be the registered proprietor of the title xxxx. They still exist as they are in liquidation and have not been struck off. If they are the owner of the title xxxx, then you need to contact the person acting for them. That is a matter of public record and 30 seconds on the internet will reveal that to you.

Kate Mellor

7 months ago

Surely your solicitor can sort this for you? They should speak to HMLR and see what’s required. We recently had a case of several defunct restrictions on one of our properties that the lenders solicitor insisted had to be removed. HMLR agreed to remove most of these direct with the solicitor but one they would not. I had to track down the beneficiary of the covenant (not the party who registered the restriction) so this would be Bellway Homes in your case, and my solicitor sent them a specific HMLR form to sign to remove the defunct covenant which he then submitted to HMLR-job done! Bellway may charge you an admin fee for signing the form, but it shouldn’t be too hard. Make sure you direct your request to the right person. Do they have a legal department or in-house solicitor?


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