Buying our first house - nightmare?

ST1991

Hiya, i'm new here. I have searched online for someone in the same position a me, but struggling and really need some advice/an outside opinion.

We viewed the house and fell in love with it in Jan this year. Very quickly we put in an offer, and after best and final we were accepted. Mortgage approval came through quickly afterwards (we already had MIP) and solicitors engaged after that.

It took a while for the tenants to vacate the property - but they left at the end of April. After a few queries from the searches, we are still left with one... the dreaded right of way.

The house is a middle terrace of 3. There is a right of way from the end house to ours, and next doors. It has never been used, and is blocked by the end terrace.

The property has been empty for months, and the seller cannot afford to pay the mortgage. If things do not complete by the end of July, they will need to tenant it out again until the ROW is sorted.
All 3 houses must enter into a deed of release... which is taking a long time as the neighbours are in no hurry.

We have 2 options...
Exchange, and move in under licence until completion (the seller is not keen)
Move in under tenancy, until we can exchange - once the ROW has been sorted.

If we do not move in and pay rent, they will be looking to get someone else in...

I love this house, but by husband is fed up of waiting a good 5-6 months already...
What are the implications of renting under a tenancy without exchanging?

p.s our mortgage lender will not lend funds until the ROW is removed from the deed, as it as seen as a defect.

eddddy

ST1991 wrote: »

What are the implications of renting under a tenancy without exchanging?

I guess the implication is that the RoW issue may never get resolved, so you may never exchange. (Or, for example, the seller may change their mind, and decide not to sell.)

And if you have signed an AST with a fixed period for 6 months / 12 months, that may be very inconvenient for you - if you decide you want to buy somewhere else. So you might want to negotiate very flexible break terms in the AST.

Also, check the expiry date of your mortgage offer.

Cakeguts

This ROW is probably why the house has had tenants in it. The owners probably can't sell it. I would suggest that someone like you goes round to ask the neighbours who they would prefer to live there. You or some more tenants. If they would prefer an owner occupier then they need to get onto the ROW problem.

Mojisola

Cakeguts wrote: »

I would suggest that someone like you goes round to ask the neighbours who they would prefer to live there. You or some more tenants. If they would prefer an owner occupier then they need to get onto the ROW problem.

Owner occupiers can be horrible neighbours and tenants can be lovely ones!

ST1991

Thanks everyone.
The neighbours have provisionally agreed to the deed of amendment, but it is going through their solicitors - so they are in no hurry to push things along. It is at their own cost, so we are lucky they have agreed at all!

I guess i am just unsure about moving in before exchanging... as we'll effectively be paying the sellers mortgage.
But, if we don't move in... someone else will, and it will be another 6 months before we can do anything with the worry that they might be nightmare tenants!

mildredalien

I'd only agree to move in & pay rent if it was absolutely explicit in whatever contract you sign that the tenancy could end upon exchange, whenever that was. I would also want a clear break clause should the sale not go ahead.

Cakeguts

Mojisola wrote: »

Owner occupiers can be horrible neighbours and tenants can be lovely ones!

I agree. But tenants tend to move more frequently.

ST1991

So... we still haven't completed! We have moved in to rent as this was really out last option to proceed with the purchase.

Everyone has agreed to the deed, and we are just waiting on 2 signatures.
Does anyone know how long it takes to register a deed of release with the land registry? I'm struggling to find timelines anywhere.

DoaM

Signatures from whom?

How much is this ROW costing? Could you speed things along by offering to cover the cost?

ST1991

All 3 parties had to sign. The seller of the house we are purchasing, and the neighbors either side (along with lenders of all parties)

The seller is covering the legal costs of the neighbors as she is desperate the sell. Neighbors on one side has been around to tell us they have signed and sent off, other side is on holiday and back today.

Our mortgage offer runs out on 2nd Sept and we need 2 weeks between EXC and completion due to our help to buy ISA

Land_Registry

There are no hard and fast rules re timescales re this type of application but providing it is in order and it affects already registered titles, with no other complications, then registration can normally be completed within 7/10 working days.

A release of a right of way in this example would be completed by way of a legal deed between the affected parties. Hence the need for each party to execute that deed.

When the application has been submitted the solicitor should advise us of the linked transaction and ask us to expedite it. If all in order then this can speed it up but it has to be in order or we go back to the solicitor to resolve any issues