seller lost the deeds!

DGJ_2

Price reduction ?
This is purely a legal paperwork issue that can be solved without playing silly games with the agreed sale price

kingstreet

If this is not registered land and the title deeds are lost;-

- the property will not be suitable security for many lenders

- the value will be approx 60% to 75% of market value.

This is not a simple matter to rectify and will affect any owners ability to sell, until the title is reconstructed.

DGJ_2

posts #9 and #11 are the most likely to be helpful here

gld73

Definitely speak to HSBC - they have the tightest lending criteria of any of the banks, so what may be acceptable to others may not be acceptable to HSBC. My solicitor audibly groaned when I told her my mortgage was with HSBC .... and a few days ago, a week before I was due to complete, my mortgage got refused because of some paperwork missing on the vendor's side. Apparently some lenders would have been fine with what the vendor could provide, but as I say, HSBC have very strict rules (and hence the lowest rates!).

be96erj

Yes I shall be contacting HSBC on Tuesday and asking them the question.

I'm still a little confused! Some say I shouldn't ask for money off the house others say it devalues the house by around 35%! Can anyone offer me a definitive answer?

Thanks

stylus360

I bought my first house without deeds (lost) back in 97, i had to get indemnity insurance.

be96erj

Stylus,

did you manage to get any money off the price?

Richard_Webster

I am assuming here that the title never has been registered so the loss of the deeds is significant.

If you speak to HSBC the people on the end of the phone won't have clue what you are on about (they are not lawyers and don't understand this sort of thing) so forget it. You will just stir up an unnecessary hornet's nest.

Essentially it depends on how credible the seller's evidence is about their family's ownership of the property and what other supporting evidence they can produce. If they can show they have been in possession for 12 years the Land Registry will usually give them a Possessory Title (which is nor as good as an absolute title and can be overturned if someone else can prove some rather obscure points - in most cases all that matters is possession. After another 12 years of Possessory Title you can apply for it to be upgraded to Absolute Title (which is unchangeable).

The Possessory Title will have to be supported by an indemnity policy paid for by the sellers. Provided the evidence by means of statutory declarations/statements of truth makes sense the value of the property should not be affected at all. The chances of challenge are usually pretty small and that is covered by the policy. You might ask for a reduction of no more than say £5K to cover the "fear" factor that might put off another buyer, but I don't think it would go further than that.

In most cases it is only when the contract etc comes through to a solicitor that he finds that the title is not absolute, but possessory. He will look at the supporting evidence and explain the position to the buyer and put it in context. He may have to report the circumstances to a lender, but in most cases, provided that there is adequate indemnity insurance, they will usually accept the position.