So the Bank may have Securitised Your Mortgage – What’s next?
If you have evidence that the bank securitised your mortgage and the wrong name is on the land registry title deeds, it could potentially invalidate the mortgage contract.
Here are a few key points:
- Securitisation involves the bank selling your mortgage debt to a third-party investor or trust. This severs the contractual relationship between you and the original lender [1].
- For the mortgage to be valid and enforceable, the lender must be the true owner and holder of the promissory note and mortgage deed [3]. If the bank sold your mortgage through securitisation, they may no longer have standing to enforce the mortgage.
- The land registry records should accurately reflect the true owner of the property and any mortgages/charges. If the wrong lender's name is listed due to securitisation, it could call into question their legal claim over the property [3][5].
- You may be able to argue that the mortgage is void or unenforceable if the proper chain of title and ownership was not followed after securitisation [3]. However, this is a complex legal issue that would likely require court intervention.
- The burden would be on you to provide clear evidence that your specific mortgage was improperly securitised and that the named lender is not the true holder of the mortgage [3].
So, in summary, having proof that your mortgage was securitised to a third party while the original lender remains on the land title could potentially invalidate their legal claim over the mortgage and property. But this would depend on the specific circumstances and evidence presented [3].
Citations:
[1] https://www.gov.uk/government/publications/hm-land-registry-sign-your-mortgage-deed/sign-your-mortgage-deed-guide-for-homeowners
[2] https://www.legislation.gov.uk/ukpga/Geo5/15-16/20/part/III/crossheading/mortgages
[3] https://voidmortgage.net/land-registry/
[4] https://www.ros.gov.uk/services/digital-discharge-service
[5] https://www.gov.uk/guidance/registering-a-charge-mortgage-for-a-company
Here is the typical process for correcting errors on land registry title deeds in the UK:
Reporting the Error
The first step is to report the error to HM Land Registry. This can be done through their online contact form or by writing to them [1][4]. You'll need to explain the nature of the error and provide any supporting evidence, such as certified copies of property deeds.
Land Registry Review
The Land Registry will review your request to determine if there is indeed an error that needs correcting [1]. Simple errors like spelling mistakes may be corrected within 10 working days. More complex errors can take longer to investigate.
Notifying Affected Parties
If the error prejudicially affects another registered proprietor, the Land Registry must notify and get consent from that party before making a correction [1][3]. For example, if a mapping error incorrectly included part of your neighbour’s land in your title.
Formal Application
For more complex errors, the Land Registry may request that you submit a formal application for rectification [1][3]. This involves providing evidence and details to correct the register.
Rectification Process
If approved, the Land Registry can then rectify (alter) the title register to correct the mistake [3]. This may involve updating boundaries, removing incorrect entries, or amending other details.
Compensation
There is a compensation scheme for anyone who suffers loss due to a mistake on the register, the failure to rectify it, or loss from the rectification process itself [1][3].
The key points are to provide clear evidence of the error, follow the Land Registry's process for reporting and applying for rectification, and be prepared to get consent from affected parties for prejudicial mistakes [1][3]. Consulting a solicitor can also be helpful for complex title rectification cases.
Citations:
[1] https://www.brecher.co.uk/news/how-do-i-fix-a-mistake-at-the-land-registry/
[2] https://www.pinneytalfourd.co.uk/mistake-land-registry-titles/
[3] https://www.trowers.com/insights/2021/december/for-the-record-how-to-rectify-your-registered-title
[4] https://www.gov.uk/your-property-boundaries/correct-boundary-mistake-title-plan
[5] https://www.lexisnexis.co.uk/legal/guidance/the-title-register-alteration-rectification-indemnity