Unadopted Road

coxy1234

FTB here in the process (14 weeks in) of purchasing a property on an unadopted road. This seems to be causing a number of problems and I am looking for advice as to whether I should be concerned: 

Our solicitors have advised us that they will need to write to our lender as the road is unadopted. They have been seeking an explanation for this from Highways but haven’t gotten one so have now asked the developer. Since the road is 10 years old it seems unlikely it will be adopted so they have asked if we would like them to contact the lender without the explanation from the developer.

My questions are:
1. Should we let them go ahead with this, or should we wait for the developer response (although I imagine this will just say they are not intending to adopt) ?

2. Is it likely that the lender will have an issue with this? I imagine this is a fairly common thing and our solicitor is advising for an indemnity policy to be put in place to cover adoption costs (should this happen in the future) 

princeofpounds

Is the developer the vendor, or do you mean the original developer? If the latter, they may never reply, so you can't delay forever. If it's the vendor, then they really should be replying to you, even if it's just to say they don't know. If you have a mortgage broker, have a chat with them first as they may know your lender's attitude to unadopted roads. The council's highways department really should reply to you, so try raising a formal complaint and copying in your relevant councillor.

My guess is that it won't be a problem, unless you are living on the edge with your borrowing. Unadopted roads are very common for new developments. Councils want the council tax but don't want to maintain any more roads. Personally I think it's rather scandalous, essentially creating a two-tier council tax hierarchy, but that's how it is. They are also common in rural areas, but for different reasons.

coxy1234

princeofpounds said:

Is the developer the vendor, or do you mean the original developer? If the latter, they may never reply, so you can't delay forever. If it's the vendor, then they really should be replying to you, even if it's just to say they don't know. If you have a mortgage broker, have a chat with them first as they may know your lender's attitude to unadopted roads. The council's highways department really should reply to you, so try raising a formal complaint and copying in your relevant councillor.

My guess is that it won't be a problem, unless you are living on the edge with your borrowing. Unadopted roads are very common for new developments. Councils want the council tax but don't want to maintain any more roads. Personally I think it's rather scandalous, essentially creating a two-tier council tax hierarchy, but that's how it is. They are also common in rural areas, but for different reasons.

Developer is referring to the original developer and a lack of response was my concern - especially since this has been dragging on for far too long now! So I think I will just go ahead and let them contact the lenders now, rather than delay for what could be for no gain

I think we are at the top end of our borrowing so I will be crossing all the digits I have 

davidmcn

If there's a suitable indemnity policy in place, the lender is unlikely to care.

coxy1234

davidmcn said:

If there's a suitable indemnity policy in place, the lender is unlikely to care.

Fingers crossed! 

princeofpounds

coxy1234 said:

I think we are at the top end of our borrowing so I will be crossing all the digits I have 

Yeah I didn't mean to frighten you. To be clear, I doubt it would cause them not to lend, but it might effect their LTV tolerance a bit.

coxy1234

princeofpounds said:

coxy1234 said:

I think we are at the top end of our borrowing so I will be crossing all the digits I have 

Yeah I didn't mean to frighten you. To be clear, I doubt it would cause them not to lend, but it might effect their LTV tolerance a bit.

No not at all, that can only be expected after all! 

comeandgo

I can't think of any of the properties I've lived in where the roads had been adopted.  It's never caused any problems or extra expense.

moneysavinghero

When i brought my house there was a hold up due to an unadopted road too. Estate was just under 10 years old. Think the delay was something to do with developer needing to enter into a section ???? agreement with the local council before they would adopt it. Can't remember what the actual remedy was but it took a while - council were slow with there responses.

coxy1234

moneysavinghero said:

When i brought my house there was a hold up due to an unadopted road too. Estate was just under 10 years old. Think the delay was something to do with developer needing to enter into a section ???? agreement with the local council before they would adopt it. Can't remember what the actual remedy was but it took a while - council were slow with there responses.

Section 38 agreement I think ?? 

I think here the feeling is that there is no intention for the road to be adopted and as such no agreement exists 

missile

I have purchased a house where the road was not adopted by the council. I was not aware until after purchase. There was no comment from my mortgage provider.