10.1 Specific property issues
| Issue | |
|---|---|
| Jointly-owned property | If your DPA is to be secured by way of a legal charge and the property is jointly owned then all registered proprietors (owners) must sign the legal charge and provide a completed identity form for the Land Registry, they must also confirm in writing that they will not object to the sale of the property when the time comes to settle the debt. You will need to provide proof of the percentage you own and its potential value (at your cost); the maximum legal charge amount would be your share in the total value less 10% and £14,250.00 (the Lower Capital Limit). |
| Shared Ownership and Tenants in Common | A DPA can only be approved if all co-owners and/or landlord agree to the legal charge. You will need to provide proof of the percentage you own and its potential value (at your cost); the maximum legal charge amount would be your share in the total value less 10% and £14,250.00 (the Lower Capital Limit). |
| Equity Release | Where part of the value of the property has been released by equity release the Council will require the person with the benefit of the equity release charge to agree to the Council charge being the first legal charge (by way of a deed of postponement) and the Council will require proof of your residual equity in the property. |
| Leasehold properties | If your property is leasehold you can apply for a DPA, however sometimes restrictions are placed on the title (registered at the Land Registry) and the agreement of the head landlord/ freehold owner is need to arrange placing the legal charge on the property. If this is the case it is your responsibility to arrange for and obtain this consent and to meet any costs. In the event that consent is not forthcoming the Council cannot accept the property as security. |
| Sole proprietor restriction | The property title can sometimes include a restriction that means a single person cannot consent to a change to the title, if this is the case the Council will either ask you to appoint a trustee to act as a second party or ask you to sign two documents that will remove the restriction, an ST5 and an RX3. It will depend on why the restriction is on the title. |
| Unregistered property | you must register your property with the Land Registry for a DPA and legal Charge to be secured against the property. If your property is unregistered the Council will require you to arrange and pay for first registration, you can find further information on the Land Registry website. |
If one or more of the registered owners of the property cannot give consent due to lack of mental capacity, please refer to part 8 of this document in respect of Deputyship.