The Land Registry’s new policy of early completion of applications which await an outstanding form of discharge from a mortgage lender (see Practice Bulletin 16) does not apply on first registration applications. Practice Bulletin 16 states that: “The policy will apply to all situations where an application for a discharge of whole has been made with another application but evidence of satisfaction of the charge has not been provided.” Reference here to “an application for a discharge of whole” means an application in Form DS1 (relating of course to an already registered title), and the Land Registry has confirmed this to be the case. It is not right to say on first registration that an applicant is applying for a discharge of whole. What the applicant does on first registration is to show to the Land Registry that a mortgage, as with any other incumbrance appearing to affect the title, has been discharged.
Nevertheless, one expects commercial property buyers to adopt a consistent approach to requiring mortgage discharges, so that if the buyer elects to require proof of discharge at completion, it will do so whether title is registered or unregistered.
Early completion commences next Monday, 3rd August.