One title for two properties?

Cuilean

We've had an offer accepted on a house which was part of a back land development, built about 10 years ago. The development consists of two detached houses, along with an access road to take you to the main street. Both houses were sold to an investor, who has rented them out from day 1 before putting them on the market separately this month.

My solicitor has informed me that the two houses are on one Land Registry title. I understand that this is how estate building works - the whole site has one title at the start, and as the plots are sold, they're sliced off the site title and assigned their own title number. This would suggest to me that since our vendor was purchasing the whole development, nobody bothered getting the two plots their own titles at the point of sale.

Is this a common situation? A little Googling seems to reveal that our lender will understandably not be happy, and the best course of action will be for the vendor to get the houses their own titles ASAP.

Doozergirl

They have to split the titles. No two ways about it.

It takes a while, so they should get on with it!

davidmcn

Why would a lender be any unhappier than in, say, the usual situation when purchasing a newbuild plot? The vendor conveys you part of the title, you register it.

Cuilean

We've had a proposed solution from the vendor this evening, which seems to be a recognised answer to situations like this. They're proposing to transfer part of the registered title to us to allow the conveyancing to proceed, and in the meantime, they'll get on with the process of splitting the site into the two plots it should have been. We'll then get the title documentation for our house in our name once Land Reg has registered it. This process is explained fairly well on Sam Conveyancing. Doozergirl, you were spot on with your warning about the timescale though - we have been told that the new title won't be with us for some time.

G_M

Normal practice.

When you complete the purchase you (your solicitor) submits form TP1 (Transfer of Part) to the Land Registry (instead of TR1 Transfer of Whole).

Make sure that the contract accurately describes what you are buying ie which part of the larger existing Title, along with a Plan.

The Plan will need to be submitted with the TP1. The LR will then split the existing Title and record your purchase as a new Title.

Cuilean

G_M wrote: »

Normal practice.

When you complete the purchase you (your solicitor) submits form TP1 (Transfer of Part) to the Land Registry (instead of TR1 Transfer of Whole).

Make sure that the contract accurately describes what you are buying ie which part of the larger existing Title, along with a Plan.

The Plan will need to be submitted with the TP1. The LR will then split the existing Title and record your purchase as a new Title.

Thank you G_M, that is a very helpful plain English explanation.

Tom99

You also need to think about the access road which is presumably within the title of the two houses.
It's likely the access road will be included on the title of only one house when the title is split but that the other house will have a right of way at all times and for all purposes over the access road in addition to contributing say 50% to the upkeep of the road.