What happens if I’ve lost my title deeds?
Categories: NewsAt ORJ, our conveyancing team deals with a surprising number of cases where the title deeds for a property have been lost or damaged.
From December 1 1990, it became a legal requirement for properties in England and Wales to be registered with HM Land Registry. This means if you bought your home after that date, a copy of the title deeds will be safely stored electronically on HM Land Registry’s system and can be easily accessed for a small fee, along with the property summary and title plan.
However, if you purchased the property before that date and you have not since remortgaged, it’s likely the property will be unregistered and you will still have the original paper deeds. If these are misplaced or damaged, the property cannot be sold easily.
We recently dealt with a lady who was suffering from early dementia and had thrown the deeds away, while we’ve also seen examples of paper deeds being lost to fire or flood.
What happens if I’ve lost the deeds?
Losing the deeds to an unregistered property can be a significant problem – but there is action that can be taken.
Firstly, contact the solicitor you used to complete the conveyancing when you first purchased the property. If they are still in business, there is a chance they might retain copies of the deeds. Your mortgage lender may also be able to help.
Failing that, you will need to complete an application for First Registration and produce evidence to prove your ownership.
You will need to prove 15 years of unbroken ownership. Copies of mortgage statements, utility bills and insurance documents will be considered alongside statements from neighbours and others.
Depending on the strength of the evidence, you will either be granted ‘absolute title’ or ‘possessory title’.
Having possessory title means that you are considered the legal owner of a property, but with some important information missing. The Land Registry cannot legally certify the title in the normal way and the title is therefore classed as ‘defective’. Therefore, it’s possible for a previous owner or an interested party to dispute your right to some or all of the property. This contrasts with owning with title absolute (or absolute title). Here, you can legally prove that you own the property without any possibility of dispute.
You can sell a property with possessory title – but buyers could see the purchase as risky. Mortgage lenders also need to approve the position before lending on the property, they will need to satisfy themselves that the valuation is not affected and that their interest will be protected.
A possessory title indemnity insurance policy is an option to protect buyers if another individual makes an ownership claim on the property (or part of the property) after purchase. The policy will also cover the value of the loss of market value and costs incurred if you have to surrender to the claimant.
If you own an unregistered property – and particularly if you do not know where your deeds are located – it’s highly recommended to seek registration with HM Land Registry before the day comes when you choose to sell.
Contact 01785 223440 or team@orj.co.uk for expert help and guidance.