Leasehold help urgent!!!

bionic_25

There is a house under offer that I am desperate to get my hands on. The Estate agent says I have about 10 days to outbid. However, he has also informed me that the purchase would only give me the freehold and there is some ancient leasehold agreement that is no longer being used but COULD be if someone realised they had inherited or whatever. Apperently, to previous buyers have not been able to secure a mortgage on the property because the bank's solicitors had noticed the unaccounted for leasehold and considered it too risky to approve. I do not want to be left with a house I can not sell on at a later date because it is unmortgageable.

So my question is this: is there any way I can either find out who has the lease now, or apply for it to be scrapped?

Here is the letter the estate agent sent me about it:

Thank you for your email regarding the above property. The property is freehold and therefore it is not a question of an unknown freeholder. However there is a lease registered against the title dated 28 July 1905 between **** Company Limited and ***** (person) ***** and **** (person) ******. The lease is for a term of 1000 years from 14 June 1905. The Leasehold title is unregistered and the proprietors of the Leasehold title are not known.

As we cannot obtain further information regarding the proprietors of the leasehold title or if they even exist the lease remains registered against our freehold title. This has lead to the previous buyer pulling out of the purchase as there solicitors have advised us that there is a risk that the proprietor of the leasehold title could claim a right to use the whole of the property. Furthermore we have offered to provide indemnity insurance but the buyers solicitors would not agree to proceed on this basis, although we believe that due to the age of the lease the risk is minimal.

We are unable to deduce title to the unregistered leasehold title so cannot include this in the title sale of the property. We also unable to surrender the lease as we do not know who the proprietors of the leasehold title are and therefore the property can only be sold subject to an unregistered leasehold title.

Here is the online title information i paid for from the land registry website:

Title Number : *******
This title is dealt with by Land Registry, Plymouth Office.
The following extract contains information taken from the register of the above title
number. A full copy of the register accompanies this document and you should read that
in order to be sure that these brief details are complete.
Neither this extract nor the full copy is an 'Official Copy' of the register. An
official copy of the register is admissible in evidence in a court to the same extent
as the original. A person is entitled to be indemnified by the registrar if he or she
suffers loss by reason of a mistake in an official copy.
This extract shows information current on 2 DEC 2014 at 18:51:53 and so does not take
account of any application made after that time even if pending in the Land Registry
when this extract was issued.
REGISTER EXTRACT
Title Number : ******
Address of Property : **** (Address)
Price Stated : Not Available
Registered Owner(s) : ****current owner**** of ****address*****
Lender(s) : Nationwide Building Society
1 of
2This is a copy of the register of the title number set out immediately below, showing
the entries in the register on 2 DEC 2014 at 18:51:53. This copy does not take account
of any application made after that time even if still pending in the Land Registry when
this copy was issued.
This copy is not an 'Official Copy' of the register. An official copy of the register
is admissible in evidence in a court to the same extent as the original. A person is
entitled to be indemnified by the registrar if he or she suffers loss by reason of a
mistake in an official copy. If you want to obtain an official copy, the Land Registry
web site explains how to do this.
A: Property Register
This register describes the land and estate comprised in
the title.
BATH AND NORTH EAST SOMERSET
1 (14.01.1986) The Freehold land shown edged with red on the plan of the
above Title filed at the Registry and being *** (address)
B: Proprietorship Register
This register specifies the class of title and
identifies the owner. It contains any entries that
affect the right of disposal.
Title absolute
1 (09.07.1996) PROPRIETOR: **** ****** of *** ** ******,
**** ****, **** ***** (address).
C: Charges Register
This register contains any charges and other matters
that affect the land.
1 Lease dated 28 July 1905 to *** ***** and **** **** for
1000 years from 14 June 1905 at the rent as therein mentioned.
2 (09.07.1996) REGISTERED CHARGE dated 28 June 1996 to secure the moneys
including the further advances therein mentioned.
3 (16.12.2008) Proprietor: NATIONWIDE BUILDING SOCIETY of Nationwide...

All the solicitors I've spoken to so far have been pretty useless and I am desperate to know if there's anything i can do as it's my dream house! Any help is truly appreciated

princeofpounds

This will be a fun one...

I suspect this is a case where the freeholder should have applied for adverse possession of the leasehold title. Not something I've heard before but apparently it can work that way. I can't understand why they would not have done this.

But you are going to have to get your solicitor and perhaps most importantly your lender to agree this type of possessory title is sound.

Don't go chasing the original leaseholder without legal advice; if you notify them you likely won't get indemnity.

Realistically, this isn't going to happen within ten days, although you could always try an offer and drop out before exchange if required, though it is a bit mercenary.

bionic_25

Thanks for your reply princeofpounds. I should mention, it's a bank repossession so I think they are just selling it 'warts and all' and not sorting such things. I potentially don't need a lender (might buy cash), so the worry isn't getting a mortgage in the first place. The fear is that when I want to sell it no-one will buy because of leasehold issue/unmortgageable issue. Is it something I could be 100% I could fix once I have bought? Any ideas?

Thanks again for your help, already more than I've had out of a lot of snooty solicitors! :beer:

princeofpounds wrote: »

This will be a fun one...

I suspect this is a case where the freeholder should have applied for adverse possession of the leasehold title. Not something I've heard before but apparently it can work that way. I can't understand why they would not have done this.

But you are going to have to get your solicitor and perhaps most importantly your lender to agree this type of possessory title is sound.

Don't go chasing the original leaseholder without legal advice; if you notify them you likely won't get indemnity.

Realistically, this isn't going to happen within ten days, although you could always try an offer and drop out before exchange if required, though it is a bit mercenary.

bionic_25

Does anyone else have any advice?

Could adverse possession of the leasehold still be acquired despite the fact it is now bank owned through repossession? The previous owner ws living there with the freehold only so could they still get the adverse possession for me? Or could the bank having been the owner (mortgage wise) for a number of years apply for adverse possession?

Anyone got ny idea?

Cheers

Ozzuk

What does your solicitor advise? Given the level of risk I'd want professional advice as this sounds like a potential minefield.