F2-20/99 Housing Corporation Panel of Solicitors
Distributed to: All registered social landlords and panel solicitors
1. The Panel
1.1 The Corporation set up its Panel of Solicitors in 1975. At that time Housing Association schemes approved by the Corporation depended upon loans from us and required appropriate mortgage documentation. The Panel was set up to simplify the legal processes involved and to reduce costs, which it did effectively and well. The panel also held to the Corporation's order the title deeds to the properties during and after the development period.
1.2 Following the implementation of the 1988 Housing Act, most housing projects came to be financed through the private sector rather than depending upon Corporation loans and from March 1996 the Corporation stopped approving schemes requiring public lending. The sale of the Corporation's loan portfolio to Orchardbrook in March 1997 and the subsequent transfer of deeds, eliminated the need for the continued existence of the Panel. Accordingly, the Corporation has decided to take appropriate steps towards the winding up of the Panel.
2. Title Deeds
2.1 However some of the panel solicitors still hold deeds which are charged to the Corporation. These deeds are still charged to the Housing Corporation because they -
- were overlooked in the exercise identifying those deeds to be transferred to Orchardbrook.
- were charged to the Corporation but should have been discharged because of redemption, consolidations etc.
- are for properties which still have Corporation loans e.g. co-ownership and Right To Buy schemes.
2.2 The Corporation as part of the process of winding up the panel aims to -
- transfer the outstanding deeds to Orchardbrook
- release charges which should have been released previously so that registered social landlords may have access to unencumbered security
- hold the few deeds which ought to be charged to us in one place - Trowers & Hamlin's London office.
2.3 Panel solicitors will be relieved of their responsibility for the holding of our deeds. The Corporation have asked panel members formally to confirm how many if any deeds they hold which are still charged to the Housing Corporation.
2.4 Registered social landlords may also be in possession of deeds which are charged to the Corporation. We would be grateful if they would notify Kim Bennett or Louise Cadore-Gregson at the address below of any deeds which they hold.
2.5 Those solicitors who are holding deeds for registered social landlords for whom they no longer act, have been asked to return those deeds to the Corporation.
2.6 Those solicitors who are holding deeds for registered social landlords for whom they continue to act have been asked to provide us with a list of the title numbers and addresses of the properties concerned. The Corporation will then inform the solicitors which of these should be discharged and which need to be returned to us or transferred to Orchardbrook.
2.7 The Corporation will notify registered social landlords if the Corporation come into possession of any of their title deeds and of the relevant action to be taken. The Corporation will charge £35 plus VAT to release these deeds to registered social landlords or their solicitors, panel solicitors can charge £41 plus VAT to cover their costs as per Practise Circular 6/ 82 - a copy of which is attached.
3. Releasing deeds from charge
3.1 To release deeds from Corporation charge, registered social landlords should ask their solicitor to prepare the relevant Land Registry Form (normally DS1) for registered property. For unregistered property, solicitors will provide the relevant discharge details.
3.2 These release documents plus details of the Corporation's development account number for each title should be sent to Louise Cadore-Gregson at the address below.
Any queries on this Circular should be addressed to Kim Bennett or Louise Cadore-Gregson at the Finance Division, The Housing Corporation, 149 Tottenham Court Rd, London W1P 0BN, telephone number 0171 393 2239 or 2213.
