Other considerations
Other Conditions Precedent
The Loan Agreement and/or Security Trust Deed will set out all the Conditions Precedent which the Lender or its solicitors will require before the Legal Charge can be completed. In addition to the Certificate of Title, the following are Conditions Precedent which are usually required:
1. A copy of the block insurance policy and up-to-date Schedule for the RP or RSL with evidence that the interest of the mortgagee has been noted on the policy. Most insurance policies contain an automatic noting of mortgagees’ interests but some mortgagees (including Prudential Trustee Company Limited) do require specific confirmation from the insurers that their interest has been noted on the policy and may not accept the automatic noting clause.
2. The Valuation. The original of this will be sent direct to the mortgagee but a copy of this will be required by us so that we can check that it covers the correct properties and can check that the assumptions made in the Valuation are correct.
3. The Legal Charge. This will be prepared as soon as the Certificate of Title has been approved by the Lender’s solicitors and will be sent to the RP or RSL, in duplicate, for execution in accordance with the relevant Board Minutes. The RP or RSL will be asked to provide us with a letter, typed on their headed paper and signed by the Secretary of the RP or RSL, confirming that the Legal Charge does not contravene any of the provisions of the their Rules when returning the executed Legal Charge to us as this is a requirement of the Land Registry.
4. The standard forms of tenancy agreements and shared ownership leases (if applicable) used at the properties to be charged.
The Loan Agreement and/or Security Trust Deed may contain other Conditions Precedent which are required by that specific mortgagee such as a Certificate by the RP or RSL confirming the number of the properties being charged which are let, a Certificate by the RP or RSL confirming that they have no Floating Charges or giving details of any which they do have or a Certificate by the RP or RSL confirming that the Conditions Precedent previously provided when the Loan Agreement was entered into are still correct, complete and in full force and effect. Any such Conditions Precedent will be requested from the Registered Provider as soon as a copy of the Loan Agreement has been received by us.
If the properties are being charged to a Bond or Private Placement, there will be additional Conditions Precedent requirements such as a Sampling Methodology Letter and an Initial or Additional Property Certificate which we will prepare and send to you for execution prior to completion.
Pre-Completion Searches
As soon as all the Conditions Precedent have been provided to the mortgagee or its solicitors (including the executed Legal Charge and the signed Certificate of Title), the following pre-completion searches will be carried out:
1. Searches at the Land Registry. These are carried out to give the Legal Charge priority over any other applications which are sent to the Land Registry after the Searches are carried out. If the Titles are registered, OS1 or OS2 Searches will be carried out. These Searches will give the Legal Charge priority for a period of six weeks from the date that they are carried out so that, as long as the Legal Charge has been completed within that period and the application to register the Legal Charge has been sent to the Land Registry within that period, the Legal Charge will have priority. The results of these are available to us instantly from the Land Registry as they are carried out using our Securitisation Toolkit. If the Titles are unregistered, Land Charges Act Searches will be carried out. These only have a three week priority period.
2. A Companies House or Financial Conduct Authority Search. This is carried out to reveal any Floating Charges which the RP or RSL has. If any Floating Charges are revealed, we will apply for Letters of Non-Crystallisation in respect of the Floating Charges from the Floating Charge holders to be sent to us on the morning of the date set for completion. These will need to be sent to the Lender’s solicitors on the day of completion.
Post-Completion Matters
Following completion, the Legal Charge will be registered at Companies House or the Financial Conduct Authority and the Land Registry.
When the Title Information Documents are received back from the Land Registry following registration of the Legal Charge against the Titles, they will either be stored here or sent to the mortgagee or its solicitors if requested by them.
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