Flying Freehold Query

wwfwilla

The lenders solicitor has now responded with the following:

6. The title states that the first floor as to the part coloured blue on the filed plan is excluded but this appears to contradict the sales particulars we have looked at on Rightmove which shows that the part of the bedroom overhangs the passageway. Why has the Land Registry stated that the first floor is therefore excluded? How do the sellers anticipate getting the documentation changed with the Land Registry as we will need the docs to be changed.

We will not be in a position to accept your request for funds until all matters have been satisfactorily resolved.

I get the feeling a straightforward indemnity policy may not be as straightforward as first thought. I'm a bit lost on some of it but it looks like they are after paperwork changes?

greatcrested

Looks like they want the seller to get the LR Title/Plan altered to reflect reality.

This will inevitably involve also altering the neighbour's Title/Plan.

So there will be a delay while

* the seller is convinced to do this

* the neighbour is convinced to do this

* the neighbour appoints a solicitor (and then claims your seller should pay as he's not bothered about the change)

* the respective solicitors agree new wording and Plans

* the solicitors submit these to the LR

* the LR expadites the submission from a 2 month wait to a 3 week wait (if requested due to a related sale)

* the LR checks the submissions

* the LR(possibly) appoints a surveyor to visit and report

* Finally the LR changes the Titles

wwfwilla

greatcrested said:

Looks like they want the seller to get the LR Title/Plan altered to reflect reality.

This will inevitably involve also altering the neighbour's Title/Plan.

So there will be a delay while

* the seller is convinced to do this

* the neighbour is convinced to do this

* the neighbour appoints a solicitor (and then claims your seller should pay as he's not bothered about the change)

* the respective solicitors agree new wording and Plans

* the solicitors submit these to the LR

* the LR expadites the submission from a 2 month wait to a 3 week wait (if requested due to a related sale)

* the LR checks the submissions

* the LR(possibly) appoints a surveyor to visit and report

* Finally the LR changes the Titles

So are we past the point of using an indemnity policy to take things across the line in the short term do you think?

RAS

Suggest that your vendor explains to the neighbour that unless this is sorted, they'll also have difficulty selling.

Also vendor and neighbour need to inform their insurers who may refuse to cover at all. Although NFU are understanding about flying freehold.

Land_Registry

Any exclusion is generally made on the basis of the deeds submitted when the title(s) are registered. So no site visit/survey as reliance is on conveyancing and deeds done historically. 

You’ll obviously know what’s there in reality but it’s the floor level that counts from a registration perspective. You refer to a bedroom but that’s what it’s used for and not a floor level issue.
But these matters now appear to be something you need resolving and negating the indemnity policy option I suspect. But your solicitor needs to confirm for you and if the floor level exclusion is wrong that needs correcting, in my experience 

wwfwilla

Just to update. My solicitor has summarised that the indemnity policy for £125 would solve the FF if that was the only issue.
TSB's solicitor have conveyed that nothing will move further forward and I will not get funds without the Land Registry being amended.
I have passed this info onto the Estate Agent. They state the seller in all likelihood would still want to proceed because of how much time and effort has already gone in and another 5-6 months of starting the sale from scratch is not what is wanted.
So I left the EA to speak to the seller and the sellers solicitor for a plan of action. I did say that I kind of have to sit out the process until its sorted with the Land Registry.
So i'm just waiting to hear back about the way forward.
I'm assuming the only way the seller would pull out is that either its too expensive/time consuming or the neighbour won't engage to resolve the issue so we hit a brick wall.
I've said as long as the issue can be sorted then I will still buy, but can't do anything further until that point.