Buying a house with Possessory Title of driveway

handbrakebob

Hello all,

First time poster so please go easy on me!

My fiancee and I are currently trying to buy our first house, but we're having some problems as the title plan doesn't include the entire plot. Essentially the end of the driveway (about 40m2 where it meets the highway) is unregistered. The missing land is enclosed by the property's boundary wall and fence. There are declarations from the current and previous owner that confirm that the physical boundary hasn't been changed since 1968.
Our solicitor advised that we should ask the vendors to apply for adverse possession, and that we should seek Absolute Title.

After several delays (it took the vendor 2.5 months to find the statutory declaration from the previous owner) the application was made to the Land Registry. The Land Registry have now confirmed that they're willing to grant Possessory Title only.

The solicitor is currently asking the LR to confirm why they haven't granted Absolute Title, but we've done a bit more reading and it seems that Possessory Title has always been the likely outcome.

It seems likely that the only way to proceed will be to accept the Possessory Title and an indemnity policy.

To finally get to the point, we have a couple of concerns:

1. Sellability. If we sell the property before the 12yrs is up (fairly likely) how much of a problem is this likely to be?

2. Value. How much do you think this detracts from the value of the property?

The plot's large (~730m2) for a house of this type (3-bed detached) so the 'missing' 40m2 is a relatively small proportion (there's space to build another drive if the worst happened). However, due to the size and shape of the plot it's possible (subject to planning etc) to build another house in the back garden but the access would need to be constructed over the 'missing' bit of land. We've got no intention of doing this, however it would be nice to retain the development potential.

What we (well, I) would like to do is build a new garage/man-space and this would be heavily compromised if we couldn't use the current driveway.

3. If this does detract from the value, should we attempt to renegotiate?

We're reluctant to walk away or do anything that might annoy the vendors as this is easily the best house we've seen, however we need to be sure we aren't taking any undue risks.

Many thanks, Rob.

princeofpounds

I quote from the excellent Jeffrey from LLzone forums:

Possessory Tile (based on adverse possession) is a 'holding' title. No-one can register deeds-based ownership unless the Chief Land Registrar first serves Notice on you* and considers that the possessory title was wrongly awarded. Yes, you* can build on it or sell it; but, in either case, an Indemnity Insurance policy is essential.

If no deeds-based ownership challenge or registration is lodged within twelve years from the date of first registration, you* can apply for the title to be upgraded (fee currently £40) to absolute; and thereafter no-one can disturb it at all.

http://www.landlordzone.co.uk/forums/showthread.php?19750-quot-Possessory-title-quot-what-does-it-really-mean

Now I'm no legal expert, but if you collect good evidence that the physical boundaries have been in place for many years with continued use and possession then you are unlikely to ever face a successful challenge. So I'd think this would be a very low risk. But again, that's a totally lay opinion.

TBagpuss

1. It's unlikely to be a massive problem - obviously some buyers are much more risk-averse than others, so it's possible that you slightly narrow your 'pool' of potential buyers.
2. Very hard to say - there is a slight risk, there will be some costs involved in getting the Posessory title made Absolute in due course and any transaction of tat land is going to be slightly more complicated
3. It depends. It souens as though the sellers have applied or posessory title so they have already met that cost, and presumably they will also be paying for any indemnity policy. Given that, on the basis of your descriptipon it sounds as though it is highly unlikely that anyone will pop up after 45 to challenge the ownership, so at most your likely exposure will be to the the cost of paying for an indemnity policy for your buyers when you move out, or applying to the LR for Title Absolute f you stay put.

Speak to your solicitor about whether the Posessory Title is likely to create any other problems.

However, if this house is 'easily the best' you've seen, you need to decide whether it is worth it *to you* to risk losing it

handbrakebob

Thank you both - appreciated.

Richard_Webster

Sellers should pay for insurance in case the title is challenged.although as others have said , this is very unlikley.

When you sell you do not make a huge fuss about it. If you have to say something, talk vaguely about a legal quirk about the driveway that you solicitor says is a technicality. Your solicitor will simply produce the paperwork to the buyer's solicitor, and provided it is supported by indemnity insurance, should also tell his clients it is a technicality.

OP has posted a query about it here but most people wouldn't go to these lengths and would be pacified by their solicitor. Not really worth a price reduction- £500(?) for minor hassles perhaps?

handbrakebob

Thanks again for your comments.

Better-half and I are currently arguing about whether we should seek a renegotiation. Any further thoughts or arguments for or against?

Thanks, Rob.