Charges on property

[Andyson]

If 3 people own a house and all three are named on the Land Registry can 2 of the owners raise a loan and charge on the house without the knowledge and agreement of the third owner?

[shomer42]

Yes, but the lender is unlikely to agree. The lender would want the third owner to know so they are secured against his claim to title. Otherwise the lender is only secured against the two owners and not the three. Just my opinion, not an expert in this area.

[anniebird]

No. Any company lending money on a secured loan should check with Land Registry to see whose name is on the deeds before agreeing to the loan and on seeing the third name should refuse to complete unless the third person becomes a party to the agreement.

[Andyson]

Am I correct in saying that if the bank wants to recover the loan or re-mortgage they cannot take possession of the house without the agreement of the third owner. Does this mean that the bank would have to negotiage with the third owner who does not live in the house and had no idea that a loan/re-mortgage had been applied for and obtained. It looks like a criminal offence may have been committed.

[lawsanass]

The other owners would have to declare a third party interest and the lender would have to contact you, they would be in lots of deep poo if they didnt