Under a new scam, ID fraudsters fake documents that “prove” they own your home, then either sell it or take out a mortgage on the property. Either way, you foot the bill. But there is a way of fighting back.
Everybody expects to feel a master in their own home, but you’ll feel a bit more secure if you register that fact.
When you bought your home, your solicitor or conveyancing agency should have listed it on HM Land Registry, the definitive record of property ownership in England and Wales. It proves you are the legal owner and makes it easier to change, sell or pass on your home in the future.
This also gives you valuable protection against a new type of fraud. Empty houses, rentals, unmortgaged homes or properties where the owners are overseas are particularly vulnerable.
Identity fraudsters may create phoney documents that supposedly prove they are the property owner, say by applying for ID such as a replacement driving licence or passport with a photograph of themselves instead of the rightful owner.
They then advertise the property for sale and instruct a solicitor to complete the transaction. After completion, they disappear with the proceeds while the true owner has no idea what’s happened until too late.
Alternatively, fraudsters take out a mortgage using the owner’s stolen identity, and disappear with the cash leaving the real owner with the debt.
Don’t panic, it’s quite rare. Especially if you live in our home, although buy-to-let landlords should be wary.
However, it’s worth taking a simple precaution by signing up to the free HM Land Registry Property Alert Service at Gov.uk/guidance/property-alert.
This takes minutes and you can monitor up to 10 properties, all you need to know is the address or postcode. This means you can also monitor the property of a relative.
You may get an email alert if, say, someone applies to change the register or the Land Registry receives a notification that an application may be due.
It will also inform you who the applicant is and the date and time the request was received. You can then judge whether the activity is suspicious and whether to seek further advice.
Since 2022, there has been a 26% increase in the number of property owners registering with the alert service, with another 150,000 homeowners signing up.
Olly Thornton-Berry, managing director of Thirdfort, which was handed the data following a Freedom of Information request, said more property owners need to protect themselves fraudulent transactions. “With increasingly sophisticated methods of identity fraud, all properties are at risk, although empty properties, tenanted properties and those without a mortgage are particularly vulnerable.”
In total, 734,687 property owners have signed up, but that covers barely 3% of the UK’s 24.8million homes. “We continue to urge more people to take this simple but effective step,” Thornton-Berry said.
Property experts at HomeOwners Alliance also encourage owners to use the alert service and suggested going a step further.
Those who want further reassurance can put a restriction on the title deed. This stops the Land Registry from registering a sale or mortgage unless a conveyancer certifies the application was made by you.
Again, this makes it harder for ID fraudsters to sell or take out a mortgage on a property owned by someone else.
However, it also places a restriction on you, as you will need a professional conveyancer or solicitor to verify your identity before you can mortgage or sell.
Given that your property is probably your biggest asset, it makes sense to stay alert.
