HMLR Title Register clarity

I spent my £3 and downloaded an HMLR Title Register for a property the other day. Mostly it looks the same as others I've seen. However, in the Lender(s) section, it has what you'd expect - the name of a Bank (Santander) - and then another line "Homes and Communities Agency", which I did not expect.

Does anyone know what it actually means when you see that?

That's a Government department, I gather... does it imply the buyer participated in a Government first-time-buyer scheme (Help To Buy?) or something like that? It's not going to imply any kind of shared ownership or a Charge is it? I've never seen that before. It's a new build (2015), if that helps.

There's no "lender" section; but an entry in the C. Charges Register means a registered charge of some type.

The HCA originates in the Housing Corporation. There must be some financial arrangements.

But do not worry if you're buying the property; such entries will be removed on registration of the Transfer to you.

Note: it's not "Shared Ownership" unless the registered Lease seems typical of an SO scheme.

Hi, thank you. I mis-spoke when I said Lender(s) section, what I mean is the main header where you see Title Number, Address, Price, Registered Owner(s) and, then, Lender(s). Here I see mention of Santander UK PLC and then Homes and Communities Agency.

This is a new one on me... I've viewed plenty of these Title Registers in my time. I am curious why this Homes and Communities Agency would be mentioned as a Lender.

There is then further mention of the HCA in Section C - "(05.05.2016) Proprietor: HOMES AND COMMUNITIES AGENCY of Arpley House, 110 Birchwood Boulevard, Birchwood, Warrington WA3 7QH" - so are they a Lender of some description and when would you typically see this - when a Government help scheme has been used?

---------- Post added 13-06-2017 at 17:43 ----------

I am only asking this stuff for my own curiosity, really. I am trying to figure out how easy it is for Person B to have themselves removed from a property's Title Deeds when Person B and Person A are currently mentioned on it.

Both Person B and Person A want this to happen.

when would you typically see this - when a Government help scheme has been used?

Yes, this is an equity loan, a Help to Buy Scheme

I am only asking this stuff for my own curiosity, really. I am trying to figure out how easy it is for Person B to have themselves removed from a property's Title Deeds when Person B and Person A are currently mentioned on it.

 

Both Person B and Person A want this to happen.

So the idea is that the two proprietors (A and B) want to transfer to the sole name of A. That's perfectly feasible if either:

a. all existing mortgages and financial charges are removed at the same time as the Transfer is registered; or

b. all existing mortgagees/charges agree by Deed to release B from the relevant obligations in their favour.

Yes, that's the idea - except A and B would become solely B (but that's nit-picking)

Proprietor A wants to remove themselves completely from the mortgage and Title Deeds that she now shares, and is listed on, jointly with Proprietor B (sister). Proprietor A doesn't want any monetary return for doing this; ideally the mortgage would continue as-is, with just Proprietor B being liable (not something a Lender would be ecstatic about, I'd think) - which is, in truth, as it is today anyway... Proprietor A pays nothing towards either servicing the mortgage or the upkeep of the property.

Option A doesn't sound an attractive way forward, really.

Option B seems more interesting.

Sounds like a bad idea from the start, and I've said so. Too messy for my liking.

Is this Help to Buy then if so you should read this:

"Can I own a Help to Buy home and buy a second home?

No. If you can afford to purchase another home you will have to repay the Help to Buy: Equity Loan.

The property purchased must be your only residence. Help to Buy is not available to assist buy-to-let investors or those who will own any property other than their Help to Buy property after completing their purchase.

You cannot rent out your existing home and buy a second home through Help to Buy.

Applicants who make fraudulent claims for Help to Buy assistance will be liable to criminal prosecution. Fraudulent claims will always require immediate repayment of the equity loan

- See more at: https://www.helptobuy.gov.uk/equity-loan/faq/#sthash.1TqRbVna.dpuf"

From https://www.helptobuy.gov.uk/equity-loan/faq/

Thank you so much for this. That's eye-opening. I'll find out more right now.

---------- Post added 16-06-2017 at 13:40 ----------

There can't have been one, at least not anything big, as I know the figures of the property they're 'sharing' - it was £210,000 to buy and they put a £50,000 deposit down (themselves) and the current mortgage balance is around £150,000 as around £10,000 has been paid off in the year and a bit that they have had it.

So... it really begs the question as to why the Homes And Communities Agency are on the Title Register in the Lender(s) portion of the header part. Maybe there was a tiny equity loan? Something inconsequential?

---------- Post added 16-06-2017 at 13:44 ----------

Ah-ha, it's making more sense now... maybe there was a small loan here to bump up the deposit to get the best mortgage rate... it's possibly what happened.

http://www.moneysupermarket.com/mortgages/hubs/first-time-buyers/help-to-buy-scheme/

What's important, I think, is this - "Borrowers can choose to repay the equity loan at any time, without penalty."

---------- Post added 16-06-2017 at 14:08 ----------

OK - got clarity.

There is no Help to Buy aspect. Before she helped her sister out, her sister was going to buy with her boyfriend, but he dropped-out. They were going to do Help to Buy. However, that all changed when my friend got on board - could it be an admin. mistake, something left over when it should not be?

I know - from painful personal experience - that HMLR records are not infallible.

I know - from painful personal experience - that HMLR records are not infallible.

True. But, even so, HMLR registers no more than what somebody applies to register.

Hence the HCA entry is there because somebody applied for its registration.

Maybe you can ask HMLR to disclose who that somebody was?