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Early Completion and the CML

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The CML Lenders’ Handbook for England and Wales has not been changed to take into account early completion at the Land Registry.

Even though early completion may alter the order of events at the Land Registry the actual conveyancing process remains the same.

The Land Registry change offers conveyancers some protection as far as subsequent registrations are concerned and the move has accordingly been welcomed by lenders and conveyancers alike.

On the subject of the Lender's Handbook the Land Registry has stated that:-
"Completing the applications to register the transfer and new charge subject to the existing charge would not appear to affect the obligations of any party in relation to that existing charge.

Whilst early completion will not prevent the new charge taking effect as a first legal charge; it can never become a first charge until the existing charge is removed. This is so whether or not the new charge is entered in the register. The entry of the new charge under early completion simply protects the priority of that new charge as against any other interest whose priority is not protected at the time of registration."

Early completion does not change the requirements in paragraph 14.1.1.1 of the Lender's Handbook which oblige the conveyancing solicitor to register the mortgage as a first legal charge at the Land Registry. Lenders will not regard the undertakings and duty of care as having been completed until this is achieved.
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