Tag Archives: london
Land Registry extends its anti-fraud property scheme to companies in England and Wales
After a successful pilot scheme, the Land Registry for England and Wales has introduced an anti-fraud security measure for companies concerned property might be subject to a fraudulent sale or mortgage. Tenanted, unoccupied or mortgage free properties are known to be particularly vulnerable and property fraud can happen in many ways. For example, fraudsters may attempt to acquire ownership of a property either by using a forged document to transfer it into their own name, or by impersonating the registered owner. Once they have raised money by mortgaging the property without the owner’s knowledge, they disappear without making repayments leaving the owner to deal with the consequences. ‘Recorded incidents of forged transfers and charges are not restricted to individuals. Corporate owners such as landlords of residential and commercial properties are targeted too. Since September 2009, we have prevented frauds on over 160 applications representing properties valued in excess of £70 million,’ said Alasdair Lewis, director of legal services at the Land Registry. With fraud currently estimated to cost the economy £70 billion annually, he pointed out that it makes sense to try and deter fraudsters wherever possible. ‘Together with our top tips, our new restriction can easily be used by companies to help protect their property from being stolen,’ he added. A request by a company for a restriction can be made using Form RQ(Co). The restriction is designed to help safeguard against forgery by requiring conveyancers, for example a solicitor, to certify that they are satisfied the company transferring, leasing or mortgaging the property is the same company as the owner before any new sale, lease or mortgage is registered. They must also certify that they have taken reasonable steps to establish that anyone who executed the deed on behalf of the company held the stated office at the time of execution. There is no Land Registry fee for companies registering this restriction for up to three titles and the move follows the successful launch, three years ago, of a similar free restriction for private individuals who do not live in the property they wish to protect. Land Registry’s top tips to protect property from fraudsters include making sure the property is registered. Innocent victims of fraud who suffer a financial loss as a consequence, may be compensated once registered, so having up to date contact details on the title register is recommended. Property owners can also sign up for the multi award winning free Property Alert service which helps owners guard against property fraud on up to ten registered properties in England and Wales. Private owners and companies who feel their property might be at risk can have a restriction entered on their title register which is designed to help prevent forgery. An example is an application to register a fraudulent transfer of a tenanted property in Princes Risborough, Bucks was recently identified by the Land Registry who worked closely with Thames Valley police in their investigation of the crime. This led… Continue reading
UK residential mortgage market becoming too restrictive, study suggests
Renewed optimism in the UK mortgage industry for growth in 2015 is being overshadowed by the view that the market has become too conservative, it is claimed. Post financial crisis regulation is hampering the market and brokers are reporting difficulties in meeting customer needs, according to the latest research from the Intermediary Mortgage Lenders Association. While optimism is returning some 84% of brokers were unable to help at least one customer in the last six months, up from 78% in July 2014, the report points out. Products for the self-employed or those seeking to borrow into retirement are among those in short supply and people with low incomes or dependents have been most affected by reduced access to finance. Overall 74% of brokers took the view that market conditions are worsening, which is backed by 65% of lenders. It comes despite improving sentiment towards market conditions following a period of changes to lending criteria. IMLA’s previous research in July 2014 found 45% of brokers and 33% of lenders reporting that market conditions were worsening. This followed the implementation of the Mortgage Market Review (MMR) in April and with new macro-prudential controls on the horizon. Their pessimism has since softened with just 23% of brokers and 21% of lenders feeling the same way in January 2015. Some 51% of brokers, up from 41% in July, and 53% of lenders, up from 44% in July, now feel market conditions are currently improving. However, IMLA’s research reveals 84% of brokers were unable to source a mortgage for at least one client during the last six months, up from 78% who said the same in July 2014. A breakdown of the figures shows that 53% of brokers were unable to help a client with adverse credit, 53% were unable to help an interest-only borrower, 50% were unable to help a customer seeking to borrow into retirement and 46% were unable to help a client who was self-employed or had an irregular income. Overall, brokers and lenders both identify low income borrowers and those with dependents as the two consumer groups who have been most impacted by reduced access to finance following the MMR. Among the new rules, interest rate stress tests are seen to have had the biggest effect in reducing the amount people can borrow. More brokers and lenders report that the new rules are having an impact than was the case in July. Some 39% of brokers feel product availability has increased following the MMR, while just 18% feel it has reduced. Yet opinion is more evenly split on product flexibility with 27% of brokers feeling this has improved but 23% that it has not. ‘Regulation is vital to ensure that mortgage lending is safe and in proportion to consumer needs and the wider economy. But when families with dependents are among those who find themselves at a disadvantage, there are legitimate concerns that the pendulum has swung too far as a result of successive, incremental measures,’ said… Continue reading
Millions of home owners suffer damage to neighbour’s renovations, research shows
Some 3.7 million home owners in the UK have suffered property damage due to neighbour renovations in the last five years with only a third accepting responsibility for damages, new research shows. The repair bill for damages across the country totalled more than £1.5 billion with just 33% of neighbours accepting responsibility and 30% blaming someone else, according to the research from Direct Line’s SELECT Premier Insurance. Some 17% did not directly confront neighbours about damage to their property, surprising given that the average cost to repair damages was £533 and for 8% more than £1,000 was required to repair the damage. According to those whose damaged property incurred a cost to repair, the majority of their neighbours, 53%, shared at least half of the cost of repairs and 14% paid over 80% of the costs. However, 19% of neighbours paid nothing towards damages caused by their home makeovers. ‘In the UK we take pride in our homes with many seeing extending and renovating their homes as a way to improve their living standards. As such it is not surprising that in the 12 months to September last year we saw more than 55,000 residential planning applications made in England with more than three quarters of them accepted,’ said Nick Brabham, head of SELECT Premier Insurance. ‘If you or your neighbours are thinking about starting a home makeover project it is worth assessing and discussing the risk of damage to adjacent properties with neighbours. It is also crucial to check whether your home insurance policy covers damage caused by neighbour renovations, otherwise you could be left with a hefty repair bill,’ he added. Damage to fencing was the most common ailment for victims of over exuberant home transformation projects, with 43% suffering damage. A quarter of people highlighted damage to windows and damage to garden features such as fountains and sheds, making these the next most common casualties of neighbour renovations. Some 24% suffered damage to gates, 22% damage to roofs, 22% damage to plumbing include leaks, flooding and moisture, 21% damage to contents, 20% damage to plants, 19% damage to exterior walls and 17% damage to a driveway. Home renovations have also caused other annoyances to neighbours with 26% enduring noise disturbances and 14% experiencing reduced parking. This was a major issue in already congested London where 26% went through reduced parking whilst their neighbours renovated their properties. Continue reading
