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Qualified Title...Help!!!!!!
sarah69696pink
Posts: 657 Forumite
Hi All,
I'm hoping that some of you may have more knowledge of this than me and therefore be able to help!!
I am selling my flat and buying a house. Everything seemed to be going ok and the sale & purchase going ahead.
The today my solicitor emails me to to tell me that the title to the property that I am purchasing is not registered at the Land Registry with the best type of title guarantee "Title Absolute" where the Land Registry guarantee the title. The Property is registered with "Qualified Title" which is essentially because on first registration of the land many years ago, there was a document missing which was a 2000 year lease dating back to 1700's. The reason the Land Registry are unable to register with title absolute is because of the risk that the tenant under that lease could produce the original lease and claim rights to the land.
The house is a newish home and was built in 2004. My solcitor has found out that when the builders bought the land and built house on it they took out an indemnity insurance policy for defective title to comfort the purchaser of the land and also their mortgagee. Therefore I / my lender are covered by the indemnity policy up to the sum of £150,000.00.
My first thoughts were I don't like this at all and should maybe walk away.
However having thought more I'm now a little confused.
Has anyone had any expereince in buying / selling with a qualified title?
I'm afriad that it will effect the ability to sell on the house...ontop of the obvious concern that someone may claim rights to the land!!
Any advice / help is greatly appreciated!!
I'm hoping that some of you may have more knowledge of this than me and therefore be able to help!!
I am selling my flat and buying a house. Everything seemed to be going ok and the sale & purchase going ahead.
The today my solicitor emails me to to tell me that the title to the property that I am purchasing is not registered at the Land Registry with the best type of title guarantee "Title Absolute" where the Land Registry guarantee the title. The Property is registered with "Qualified Title" which is essentially because on first registration of the land many years ago, there was a document missing which was a 2000 year lease dating back to 1700's. The reason the Land Registry are unable to register with title absolute is because of the risk that the tenant under that lease could produce the original lease and claim rights to the land.
The house is a newish home and was built in 2004. My solcitor has found out that when the builders bought the land and built house on it they took out an indemnity insurance policy for defective title to comfort the purchaser of the land and also their mortgagee. Therefore I / my lender are covered by the indemnity policy up to the sum of £150,000.00.
My first thoughts were I don't like this at all and should maybe walk away.
However having thought more I'm now a little confused.
Has anyone had any expereince in buying / selling with a qualified title?
I'm afriad that it will effect the ability to sell on the house...ontop of the obvious concern that someone may claim rights to the land!!
Any advice / help is greatly appreciated!!
0
Comments
-
Make sure the indemnity insurance is upgraded to cover the present market value of the property and make sure the seller pays for it.
This is fairly unusual but the point is that the indemnity insurers do not usually insure anything where the risk is anything but very small, so I'd be inclined not to worry too much.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
Thanks Richard that helps a lot.0
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