Last minute title issues - a long forgotten lease

bigfoot371

Hey,

So after a nightmare of a time I was all set up to exchange and complete on Friday Afternoon before the 4.30pm CHAPS cut off.

3.32PM My solicitor calls, having received the final papers the sellers solicitor hadn't acted on my solicitors requests (They kept me out of the loop, first I'd heard of it).

The issue was that in 1960 odd a lady took a 99 year lease on the property. The property is freehold and I'm buying the freehold. My solicitor had phoned the Land Registry who advise they should be able to have it removed, but no promises.

The sellers solicitor (Premier Property Lawyers) didn't want to do anything, they told the sellers it had expired and was nothing to worry about as it had expired (Nothing on land reg to say this). They messeged me to say I'm just making a fuss, it's no big deal (paraphrasing). My solicitor told me it meant the lady could turn up and request the use of the house. The requested for PPL to have the lease removed as a condition of sale a while back.

Long story short, PPL are adamant that it's not an issue and say I can have it removed if I want. My solicitor advises not to risk it, and a higher-end lawyer friend checked the land reg for me and said he wouldn't buy it with that on the title.

My solicitors asked PPL to have it removed, or provide a guarantee/indemnity to have it removed.

PPL told my solicitor to do it if we want it off, but we cannot do this until I own it. If the Land Reg can't remove it, i'm stuck owning a house where someone else owns the lease.

We are in a stalemate. PPL don't seem to want to entertain the thought of removing the lease, and I'm being advised by multiple advisors not to buy with the lease.

PPL say there is no risk, but won't put the indemnity on it to prove it.

For the past 15-20 years, the seller's family have lived in the house and it is now vacant. The leaseholder has not had possession in living memory.

Anyone seen this situation before? I'm a FTB and this is stretching my understanding of the process.

I'm homeless in 6 days.

silvercar

Listen to your solicitor - that is what you are paying them for.

Hoploz

The seller's side know that to remove it will take time and they don't want to do it as that could delay the sale considerably.

The likelihood is it'll be fine but if left you'll have the same headache when you come to sell.

As you are not in a chain I suggest having asked them to get it removed you sit and sweat it out for a bit and see what happens.

If there is an estate agent involved you could involve them by reiterating that you need the process to be started ASAP as the property cannot be sold like this. He will hopefully put pressure on the sellers as both you and the EA want it to proceed.

davidmcn

Your solicitor (presumably) isn't going to advise your lender to take the risk either, so it's not as if you even have the option of accepting the position.

G_M

If it were me I would not exchange until this was sorted.

I agree the likelihood of a problem is tiny - but it is there. and if someone DID turn up claiming to to be the leaseholder, the problem would be large.

Yes, insurance would compensate you financially for being unable to continue to live in the property (until th 99 years expired), but it would still leave you house-hunting again!

mije1983

Where are you living at the moment? You say you are homeless in 6 days. Are you in rented and gave your notice before you had exchanged?

bigfoot371

Yes, I can't afford to be paying for two places and my landlord had a mate who wanted the place. I agreed with him that I'd have it mostly empty by Weds and gone by end of the month.

Landlord and I are friends, but I'm too much a man of my word to mess him about.

I travel for work a lot, I can have a word with my boss and probably pop off to client visits in Europe for a week or so if pushed and homeless.

Plenty of friends offering spare rooms, but I hate to impose.

I'm too damn British!

bigfoot371

davidmcn wrote: »

Your solicitor (presumably) isn't going to advise your lender to take the risk either, so it's not as if you even have the option of accepting the position.

I understand from them that they already have advised the title was all ok - as they had formally requested to have it removed before exchange.

I now know a friend who successfully sued my solicitor for messing up a transaction. I'm a bit peeved that they didn't confirm this had been sorted in plenty of time of the proposed date of exchange. I just glad they didn't overlook it! My contact at the solicitors is being great as chasing and hassling people, but not informing my very often of progress.

lonestar1

If you havent exchanged run, better homeless than homeless minus whatever you agreed to pay

bigfoot371

Sellers solicitor is basically giving us the silent treatment. When I spoke to seller they fully believed that it wasn't an issue and that PPL are right to refuse to fix.

lee111s

Give them an ultimatum to sort it by X date otherwise you're pulling out. Also advise them you've started looking at new properties.

If they want the sale they'll sort it out.