Getting a mortgage with indemnity insurance + land issue

ParenR

Hi

I was accepted for a mortgage. After the solicitors started the searches, it was established the back garden is not actually part of the estate and is unregistered by mistake.

The Land Registry informed the current owners they need 3 x signed statements from current/past owners for the last 12 years. The current and previous owner combined have been there for 11 years combined. They can't get hold of the 3rd previous owner.

The current owner has purchased indemnity insurance to protect the value of the property (whilst I sort with the Land Registry as the 3rd owner to provide a declaration and after the 12th year).

However, would this cause any issues with my mortgage acceptability? I.e. is it likely they would then turn it down due to this issue?

Thanks

kingstreet

The surveyor doing the valuation will take it into account.

That's about it.

I had one a few years ago where part of the garden wasn't registered and the surveyor decided it didn't affect the value.

ParenR

kingstreet wrote: »

The surveyor doing the valuation will take it into account.

That's about it.

I had one a few years ago where part of the garden wasn't registered and the surveyor decided it didn't affect the value.

Okay thanks.

The valuation was already done a while ago before this issue was brought to our attention.

My solicitor said they have already sent a letter to the lender informing them of the situation. Hence do you think they will refer this back for another valuation?

Thanks again

davidmcn

If you assume worst case scenario (i.e. the property doesn't come with the relevant bit of the garden), how does that affect the value?

ParenR

davidmcn wrote: »

If you assume worst case scenario (i.e. the property doesn't come with the relevant bit of the garden), how does that affect the value?

Would it not affect the value of the overall estate?

Thanks

davidmcn

ParenR wrote: »

Would it not affect the value of the overall estate?

Not sure what you mean by "estate" here - you're just buying one house? The lender is valuing the property you're buying. If that's a house with a smaller garden than expected, it's likely that it still has most of its value. If the "missing" land has been built on or is important for access, things may be different.

ParenR

davidmcn wrote: »

Not sure what you mean by "estate" here - you're just buying one house? The lender is valuing the property you're buying. If that's a house with a smaller garden than expected, it's likely that it still has most of its value. If the "missing" land has been built on or is important for access, things may be different.

By estate, I mean the land with the property.

It affects the whole of the back garden, not just part of it!

kingstreet

ParenR wrote: »

Okay thanks.

The valuation was already done a while ago before this issue was brought to our attention.

My solicitor said they have already sent a letter to the lender informing them of the situation. Hence do you think they will refer this back for another valuation?

Thanks again

No. It will be referred to the orginal surveyor to see if the valuation is affected.

ParenR

kingstreet wrote: »

No. It will be referred to the orginal surveyor to see if the valuation is affected.

Ah okay

Just hope it does not cause further issues then!

Thanks