Distributed to: All registered social landlords and former panel solicitors

Summary: Announces the Housing Corporation proposals for dealing with those deeds of registered land still remaining charged to the Corporation.

Introduces a Housing Corporation administration charge for sealing forms of release (Land Registry form DS1) and for storing RSL deeds where the Corporation charge is no longer securing a loan.

1. Introduction

1.1 The Corporation has recently received a report from HM Land Registry which lists the registered title numbers of those properties still in charge to the Housing Corporation. As the report only lists the title number the Corporation has matched the title numbers on the report to its database of deeds information to discover the RSLs and property addresses. This process has identified approximately 400 RSLs with deeds still in charge to the Corporation.

1.2 The vast majority of these deeds should not be in charge to the Corporation as they either -

1.3 RSLs legal transactions are often delayed as the time to deal with the dormant Housing Corporation charge is not factored in by RSLs and their solicitors. As the Corporation can now identify those charges it no longer needs, we intend to reduce the time taken in future legal transactions by informing RSLs of these charges and providing a form of discharge for each title by the end of October 2001.

2. Deeds transferred to Orchardbrook

2.1 As the Land Registry report contained a number of titles which were not on the Corporation's deeds database, we are currently obtaining office copy entries to discover the RSL names and property addresses. The Corporation aims to complete this task by the end of July. This information will allow the Corporation to complete the final transfer of missing security to Orchardbrook.

2.2 There have been 6 further transfers of deeds to Orchardbrook since the sale of the Corporation's loan book in March 1997. A substantial number of charge certificates have yet to be passed to Orchardbrook so that they can be changed into their name from the Corporation's. However provided that the particular charge has been included in one of the transfer documents the benefit of that charge will have been transferred to Orchardbrook even if the individual charge certificates are still in the name of the Housing Corporation.

2.3 Nevertheless to avoid confusion to both RSLs and their solicitors in future legal transactions on these titles, the Corporation has asked the solicitors last known to be holding these deeds to forward them to Orchardbrook's agents, Crown Mortgage Management.

2.4 When the last transfer of charges is completed in July, the Housing Corporation will write to RSLs with a list of deeds where the charge certificate is incorrectly in the Housing Corporation's name. We will ask each RSL to liaise with their solicitors to ensure that these charge certificates are updated into Orchardbrook's name.

2.5 After the last transfer the Housing Corporation does not accept responsibility for the whereabouts of these deeds and will not enter into any further correspondence on these deeds.

3. Deeds which can be released from Housing Corporation charge

3.1 A large number of RSLs have discharged their loans to the Housing Corporation without releasing the legal charge which secured the loans. In July following completion of the analysis exercise, described in 2.1 above, the Housing Corporation will send to the relevant RSLs a sealed Land Registry form DS1 for each such title which needs to be discharged from the Housing Corporation's name. We will ask each RSL to liaise with their solicitors to ensure that the DS1 and charge certificates are presented to the Land Registry for discharge. Where charge certificates are held by former panel solicitors the usual deeds production fee of £41 plus vat will be charged as per Circular 20/99. The Corporation proposes to discharge all these charges via this process by the end of October 2001.

3.2 Certain RSLs have secured sealed discharge documents from the Housing Corporation but have not submitted the documentation to the Land Registry to effect the discharge. Some of these RSLs have had to seek fresh discharge documents as they have lost the original or the Land Registry form of discharge has changed and they missed the deadline for submission of the old forms.

3.3 Any RSL that requires the Housing Corporation to prepare a second form of discharge will be charged an administration charge of £50 plus VAT for each registered title discharged (Land Registry form DS1).

3.4 From the end of Octember 2001 the Housing Corporation will not accept responsibility for the whereabouts of these deeds and will not enter into any further correspondence on these deeds.

4. Deeds which are held by the Housing Corporation

4.1 The Corporation will notify RSLs if the Corporation are in of possession of any of their title deeds and of the relevant action to be taken. RSLs are reminded that the Corporation charges £35 plus VAT per deed as per Circular 20/99 to cover the administration involved in the return of these deeds to RSLs or their solicitors.

4.2 RSLs who choose to leave these remianing deeds in storage with the Housing Corporation which are no longer required by the Housing Corporation as security for loans, will be charged £25 plus VAT per annum for the storage of each deed.

5. Lists of titles which are in charge to the Housing Corporation

5.1 Any RSL which requires a list of their titles which are still in charge to the Housing Corporation so that they can expedite these matters should contact Mick Winter at the Housing Corporation Mick.Winter@housingcorp.gsx.gov.uk

6. Unregistered Land

6.1 This circular does not affect any Housing Corporation charges on unregistered land. Any RSL which has any unregistered titles still in charge with the Housing Corporation should contact Mick Winter by e-mail or on the address below.

Any queries on this Circular should be addressed to Mick Winter at the Finance Division, the Housing Corporation, 149 Tottenham Court Rd, London W1T 7BN, telephone number 0207 393 2240 or the e-mail address above.