Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • chopkins
    • By chopkins 11th Jan 18, 1:36 PM
    • 17Posts
    • 0Thanks
    chopkins
    Buying house with Possessory Title
    • #1
    • 11th Jan 18, 1:36 PM
    Buying house with Possessory Title 11th Jan 18 at 1:36 PM
    We have an offer agreed on a house, however it turned out the deeds had been lost and as the house was last sold in 1962 it had never been registered with the Land Registry.

    The current owners inherited from their father, and during the sale process received a Possessory Title from Land Registry as they couldn't prove 15 years of deed history, and will be providing an indemnity insurance policy as we can't upgrade to Title Absolute for 12 years.

    Solictor is happy with the details provided, mortgage company is also happy as there is the insurance policy in place.

    We are happy with the risks of a title claim being made to be very small, however our concerns are about the impact on a future valution should we need to sell within 12 years (no way of predicting if we will or won't).

    When we made the offer this title issue wasn't known about, and as we have had explained to us by our solictor it is a secondary class of property title and will be for the next 12 years. Had we known about this at the start we probably wouldn't have made an offer. So my concern is, if in the next 12 years we decide to sell that other prospective buyers will feel the same, or will factor in the added risk and make a much lower offer than the house would be with a Title Absolute.

    My gut instinct is to first go back with a lower offer of around 80% of the original amount and see what the reaction is, and walk away if a reduction cannot be agreed.

    For houses with a Possessory Title, is it generally accepted to have a lower value than a house with a full Title Absolute?
    Last edited by chopkins; 11-01-2018 at 2:18 PM.
Page 1
    • Slithery
    • By Slithery 11th Jan 18, 1:56 PM
    • 522 Posts
    • 800 Thanks
    Slithery
    • #2
    • 11th Jan 18, 1:56 PM
    • #2
    • 11th Jan 18, 1:56 PM
    So you're only going to offer 20% of your original offer. I know what I'd say if I was your vendor (the second word would be off).
    • chopkins
    • By chopkins 11th Jan 18, 2:02 PM
    • 17 Posts
    • 0 Thanks
    chopkins
    • #3
    • 11th Jan 18, 2:02 PM
    • #3
    • 11th Jan 18, 2:02 PM
    Lol yeh that's what I'm expecting. Although the agreed price was for a freehold property with no knowledge of the missing deed and only being granted a Possessory Title that can be challenged for the next 12 years.

    I'm not just asking for 20% off for no reason, I'm just trying to gauge if there is typically a discount for properties without a full title? Is there no discount, 5%, 10%, 20%, 50%? Until buying this house I didn't even know this type of secondary class of property title existed
    Last edited by chopkins; 11-01-2018 at 2:05 PM.
    • lincroft1710
    • By lincroft1710 11th Jan 18, 2:10 PM
    • 10,203 Posts
    • 8,292 Thanks
    lincroft1710
    • #4
    • 11th Jan 18, 2:10 PM
    • #4
    • 11th Jan 18, 2:10 PM
    Do you mean (a) 20% of your original offer or (b) a reduction of 20% from your original offer. If (a) my reaction would be to inform my solicitor to inform your solicitor that under no circumstances would I ever sell the house to you and stop wasting my time. If (b), either justify your offer or if you can't then procedure as in (a).
    • Slithery
    • By Slithery 11th Jan 18, 2:17 PM
    • 522 Posts
    • 800 Thanks
    Slithery
    • #5
    • 11th Jan 18, 2:17 PM
    • #5
    • 11th Jan 18, 2:17 PM
    Ah, I see.

    You didn't say you were going to offer 20% off, you said you were only going to offer 20% (so 80% off).
    • chopkins
    • By chopkins 11th Jan 18, 2:19 PM
    • 17 Posts
    • 0 Thanks
    chopkins
    • #6
    • 11th Jan 18, 2:19 PM
    • #6
    • 11th Jan 18, 2:19 PM
    Updated original post, a reduction of 20% of the original offer.

    My justification on offering a reduction would be the original offer was based on purchasing the property, the land and the full title. The purchase is now a Possessory Title which isn't the same thing and will take 12 years to become a full title.

    The major concern I have is if I go ahead with the purchase and want sell this in 6 years, will it be a lot more difficult as people will immediately be put off by the lack of full title?
    Last edited by chopkins; 11-01-2018 at 2:25 PM.
    • Tiglet2
    • By Tiglet2 11th Jan 18, 5:05 PM
    • 32 Posts
    • 18 Thanks
    Tiglet2
    • #7
    • 11th Jan 18, 5:05 PM
    • #7
    • 11th Jan 18, 5:05 PM
    I bought a house with possessory title (the vendor had lived there for around 5 years, so only 7 years to go). It was never a problem when I was buying, solicitor and lender both happy with the insurance policy. Admittedly I did sell after the 12 years had passed but I don't believe it would have been a problem as another insurance policy would have been in place for a new buyer

    I think your solicitor/lender have covered any potential risks. It really is up to you. I don't personally think the house is worth less. I didn't pay less for mine. As an example, probate properties are often sold with Limited Title Guarantee because the executors will not know the history of the house and often don't have paperwork to back up any work done.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,306Posts Today

9,819Users online

Martin's Twitter