The Land Registry has updated its Practice Guide 75 which relates to transfers under a charges power of sale to include confirmation on how a mortgagee sale is affected by a restriction protecting an ACV. The restriction entered by the local authority is in standard wording and is intended to ensure that the moratorium on disposals imposed by section 95 Localism Act 2011 is complied with. The wording on the title register states:
“No transfer or lease is to be registered without a certificate signed by a conveyancer that the transfer or lease did not contravene section 95(1) of the Localism Act 2011.”
The restriction catches a sale by a mortgagee in possession whether or not the charge was registered before or after the entry of the restriction, although the disposition itself is exempted under the Act. A certificate will be required to confirm the transfer does not does contravene section 95(1) of the Localism Act 2011 when the buyer submits their application to register the transfer. The property will remain an ACV and so the entry will remain on the register after sale.