CASE STUDY: Protecting our lenders against fraudulent borrowers
Posted by: Titlesolv
What triggered the claim? The Lender was approached by Mr M for a short term loan to be secured as a second charge against the Property he jointly owned with his mother, Mrs Y. Once the loan was complete, Mrs Y would relinquish her interest in the property and Mr M would become the sole owner. Mr M was living at the property with his wife and Mrs Y and confirmed that they would be letting the property out and produced a tenancy agreement to reflect this. 6 months later, Mr M defaulted on the loan. The lender discovered that not only was Mr M still living at the property, but Mrs Y alleged that she had no idea why the property was no longer in her name, that she didn't know the solicitors who had acted on her behalf and that she did not understand the documents Mr M had asked her to sign.
What are the hidden risks for lenders post purchase?
Posted by: Titlesolv
Whilst all land in England and Wales is required to be registered at HMLR, following any significant change in title, only around 85% of all land in England and Wales actually is.
A valuable lesson
Posted by: Titlesolv
Recent data from the Bank of England's Credit Conditions Review on Q4 of 2016 noted a return to "greater credit availability for borrowers with LTV ratios above 75%."
Stand and deliver
Posted by: Titlesolv
As the government comes under increasing pressure to meet housing targets, compulsory purchase orders (CPOs) are gaining favour as a means of allowing a public body to take a property by right where it is needed as a matter of public interest.
Be on your guard
Posted by: Titlesolv
When buying land it is vital to ensure that the seller has exclusive possession of the land and also owns the paper title. It is only possible to convey and receive title to a parcel of land if this is the case. The recent decision in Heaney v Kirkby brings this into sharp focus and demonstrates the problems that can arise when someone claims ownership over a piece of land by adverse possession.
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