Help...So close yet so far

Burnsidecottage

Hi all. I am new to the site, but thought I would ask what other users of the site think of the situation I find myself in.

During the middle of January, I received a call from the estate agent to say a property had come back on the market, as it had failed to exchange the day before. Details were emailed over and it ticked all the right boxes. So the following day, I made the 9 hour trip from Skye to Sussex, by car, air and car to see the property. The following day I put in an offer and it was accepted and I would get the purchase through as quickly as I could.

Stupidly, I put all my eggs in one basket. Not only using the estate agents to find me a property, but to use the services of the mortgage broker and the conveyancing service they also offered. Survey fees and local searches paid.

What came to light early on in the proceedings, was 3 of us in the very short chain of 4, were all using the same firm of solicitors via the estate agents conveyancing service. Which I understand is being conducted under rule 6.

A piece of land was purchased in the 1950’s to make the garden larger. It looks like this was not registered with the land registry correctly. I was asked to get an expert out to check the title plans and report back. Which he has done. The area of land is correct, but he goes on to say that I may have possessory title rather than an absolute one. Should this cause an issue with my lender?

The full survey picked up on one issue, which was an internal wall that had been removed. Delays from by sellers solicitor in sending paperwork over planning permissions granted to the property which he had sat on since the January reviled that building regulations had not been granted. As the surveyors report picked up that the removal of this wall may have caused slight movement in the property. My solicitor told me that they could not get insurance for this, as a possible know fault has been mentioned. A structural engineer was sent out on Friday and he has given me a verbal report and he is happy with things. But the property still does not have building regulations. So do you think my solicitor can go back and get insurance?

The final twist, is that the person I am buying from, told me yesterday that if we do not exchange by Wednesday, 3 days time,(contracts signed and deposit paid to solicitor) the person he is buying from will not wait any longer, as he has waited so long, due to the first buyer of the property I am buying pulling out at exchange day. Can a solicitor, who is being so neurotic over this whole process, get this resolved. It has really been a case of jump, how high and I have done it. I have told them I am happy with things and to get it sorted, but they keep telling me they must ensure the lender is happy and I am not getting a 100% mortgage.

Help…..

silvercar

its always one person who sorts everything out and everyone piggy-backs. been there got the t-shirt, last summer I was sorting out my buyer's buyer's deposit, while he was at a business conference in Brazil.

Anyway your problems. Ring round for building insurance, tell them of the potential problem and that you have a structural report that it has not caused a problem. Once you have sorted out the insurance you can tell the lender that the insurance is sorted and hopefully they will be satisfied with that and the structural survey.

lack of building regs consent is not relevant now that a few years have passed and you have a survey saying the building is solid.

Possessory title should be OK - I don't know whether you can get an indemnity policy for this or not as extra security.

As far as someone in the chain pulling out, this is a risk. The bottom line is they won't be able to find anyone else able to exchange in the next couple of weeks, so they may threaten to remarket but if they get a phone call to say yo can exchange now (even if "Now" is next Monday) they are likely to say yes.

Burnsidecottage

Thank you for the reply. My solicitor tried to get indemnity insurance and was unable to do so, due to the lack of buiding regs and the possible problem caused by the removal of the wall with the movement in the building. I hope the engineers report will now allow them to get indemnity insurance.

silvercar

Its building insurance you need. If you can't get building insurance you'll have to walk away.
Iindemnity insurance is a waste of time if the wall was knocked out more than a year ago. What's it indemnifying you for? the council asking you to put the wall back in? Not going to happen, if it was done over a year ago. Shoddy workmanship? Not covered by indemnity insurance.

Burnsidecottage

I am happy with the work. It is the solicitor who is wanting indemnity insurance in place as the wall did not have building regs. I just feel I am in a now win situation and the solicitor will not move this forward with out it, dispite giving them my instructions. The company I am using for my buildings insurance are fine with what I know about the wall.