Advice needed on title ownership - Portion of Garden Land

cool_techie

Hi forumites,

Some advice needed please.

I'm in the process of buying a detached house. The vendors have owned it from new, since 1996. We have just started the buying process, as in instructed solicitors and mortgage application going in next week.

We have today been informed by the vendors that, there is a small patch of land at the bottom right of their garden (approx. size 3 ft. x 5 ft.), the title of which is not in their name.

Background to this is - In 1996 when they bought the house, it was one of the first few in the then new development and this patch of land was being used by the builders to keep a skip. As part of the purchase, the vendors had asked the builders in writing to transfer ownership of this patch to their name for nil consideration and the same was confirmed in writing by the builders. However, this transfer never took place on LR. Approximately 5 yrs back in 2004, a new neighbour moved in and knocked on their door, enquiring about this patch and claimed ownership. The vendors updated him about the above communication with the builders and showed him the letter. Since then, the neighbour has never come back and all has been quiet.

As a result of the current transaction though, his solicitors have pointed out this discrepancy and he has in turn informed me about the same.

His position is - I will not be walking up to the neighbour's door and asking him to transfer title, since that could result in (an unknown sum of) money being asked for the same.

As i said, the land in question is a very small part of the garden and lies flush behind the said neighbour's double garage.

I have uploaded the link to the images and in the 1st image, marked the area in question as red.

https://www.dropbox.com/sh/krs44haxdsg5kzj/AAD3ek3EGB0I0jgZsyufZM7ca?dl=0

What is your suggestion about, how do we go with resolving this title issue? The house in question is good and suits our requirements to a T.

Thanks, CT

elsien

If it's not in the vendors name, whose name is it in?
The neighbour? The builders? None identified?

cool_techie

elsien wrote: »

If it's not in the vendors name, whose name is it in?
The neighbour? The builders? None identified?

We are finding it out, but seems to be none identified. The builders seem to not have transferred it to any of the householders.

davidmcn

You might need a larger post count before being allowed to put URLs in your post - you just need to suitably obscure it by putting in spaces etc.

It's not clear from your post who has been occupying the land in question and what you mean by the neighbours "claimed ownership" - what have they actually done?

cool_techie

davidmcn wrote: »

You might need a larger post count before being allowed to put URLs in your post - you just need to suitably obscure it by putting in spaces etc.

Thanks David. I have now corrected my original post to relfect the URL, by removing the Image option.

davidmcn wrote: »

It's not clear from your post who has been occupying the land in question and what you mean by the neighbours "claimed ownership" - what have they actually done?

They landed up at the vendor's door enquiring about the piece of land. On the vendor informing them about the said conversations with builder and showing them the correspondence, they went away and the vendors have never heard back from them. This was in 2004.

Thanks, CT

davidmcn

cool_techie wrote: »

They landed up at the vendor's door enquiring about the piece of land. On the vendor informing them about the said conversations with builder and showing them the correspondence, they went away and the vendors have never heard back from them.

So why haven't the vendors followed it up with the builders and got title registered? Is it because it's actually registered in the neighbours' name?

cool_techie

davidmcn wrote: »

So why haven't the vendors followed it up with the builders and got title registered? Is it because it's actually registered in the neighbours' name?

According to the vendors, it is not registered in the neighbour's name. It is just that they have not followed it up with the builders, who completed the development in 1996.

I am meeting the vendors tomorrow and will be asking them to write to the builders (who still exist) and their then solicitors (will need to find out, if they are still in business as the same entity) to complete the title transfer for the patch of land.

Thanks, CT

davidmcn

Fair enough. Seems a bit daft of them to be aware of this potentially being an issue, but not bother sorting it out before they put the house on the market.

cool_techie

davidmcn wrote: »

Fair enough. Seems a bit daft of them to be aware of this potentially being an issue, but not bother sorting it out before they put the house on the market.

True.

A question, What in your view, will be the impact on purchasing this property? As in, solicitor refusing to exchange, Lender refusing mortgage etc. Any other potential pitfalls?

Thanks, CT

silvercar

Worst case scenario is you buy the property without this piece of land.

davidmcn

cool_techie wrote: »

True.

A question, What in your view, will be the impact on purchasing this property? As in, solicitor refusing to exchange, Lender refusing mortgage etc. Any other potential pitfalls?

If they get title from the builders to the missing bit, that sorts it. If not then probably simplest to take a worst case scenario and assume that bit doesn't exist for the purposes of valuation. Other option would be for them to stay quiet and claim adverse possession, though the fact they've specifically discussed it with the builders doesn't help.