Buying a house, seller has lost deeds?!

frankfrankly

Hi all

A few questions about a house we are trying to buy. It is a house we like, obviously, but there are plenty of others out there at the moment so won't be too upset if we don't get it.

We were ready to proceed and have agreed the sale of our own house. The problem is the seller can't find the deeds. The property has been inherited and has not been sold since 1968, it was only sold once when it was first built in 1922. It is therefore not registered with the Land Registry.

The questions!

How long do you think it will take for new deeds to be established?

If they are only granted a possessory title and therefore I need an indemnity policy, how much does this cost? will it effect future resell? is it a negotiate point on the price?

If it does fall through I am seriously annoyed, how can someone try to sell a house without deeds, I have wasted £800 on a survey!!

Thanks for all your help!

Bananamana

If they have owned since 1968 they should be able to apply for possessary title (at their own expense). After 12 years you can apply for the title to be upgraded to absolute.

You will require indemnity and the seller should pay for this (this is not a point for negotation)

Yes it will affect resale and some lenders may not be happy to lend on it.

frankfrankly

Thanks bananaman. I dont think I was clear though. It has not been sold since it was first built in 1922 since then it has stayed in the same family, 3 generations apparently. I mentioned 1968 as I believe this is the date the Land Registry began holding deeds.

It has only just been inherited, therefore they have not personally lived there for 12 years.

You say it will effect re-sale but is not a negotiating point, how can this be so? They didnt realise the deeds were lost until recently.

DVardysShadow

The not a negotiating point is that the vendors pay for indemnity insurance.

frankfrankly

But if it potentially effects resale value then surely that is a negative point?

DVardysShadow

Yes, the issue about the deeds is a negative point. The seller paying for indemnity insurance should not be a negotiating point.

G_M

Do not negotiate or compromise on the indemnity policy. The seller should pay.

By all means negotiate on purchase price if you wish.

frankfrankly

Yep, sorry new to this forum malarky so a bit unclear!

I am sure the vendor will par for the indemnity. It is just a real pain these things never seem to be easy!

How much of a risk do you think getting the house in these circumstances will be?

Any idea how long this sort of things take, bored of our rental flat.

nollag2006

For something as basic as this, their solr can do it over the phone in 20 minutes. Shouldn't hold things back at all

Bananamana

To clarify

1. seller needs to apply for posessory title at his own expense - he can show 12 years possession by his own and neighbours declaration
2. If seller is granted said title he will need to provide indemnity - again at his own expense

You should hold off ant further work/ costs until 1 has been dealt with. If he cannot satisfy the LR he has the right to the title then you should not buy.

Bananamana

nollag2006 wrote: »

For something as basic as this, their solr can do it over the phone in 20 minutes. Shouldn't hold things back at all

errr no

declarations will need to be prepared and an application in writing to the land registry

I presume you mean indemnity however