Unregistered land found in a search for the property in purchasing

Bexxie1979

I am currently in the process of buying  a property and have recently been told by my solicitor that the searches have discovered a very small piece of unregistered land at the very end of the garden. 

It’s a massive garden, we aren’t too worried about it to be honest but our solicitor said the only way to proceed is for the current owner to contact land registry and get it registered. Which could take months. We are already 5 months in and I am getting quite stressed with it all, plus the stamp duty deadline is looming....
Is there another way? 

davidmcn

Yes, the other way is to accept that it's a very small piece at the very end of the garden and sort it out in your own time...

Bexxie1979

The solicitor said this isn’t an option?

davidmcn

Bexxie1979 said:

The solicitor said this isn’t an option?

Why not?

Also, do you mean "unregistered" as in the sellers have a title, but it isn't registered, or they simply don't have any sort of title to it?

greatcrested

Bexxie1979 said:

The solicitor said this isn’t an option?

We don't know what he said. Why ask us!?

But seriously, if the boundary of the registered property, excluding this plot, is enough to satisfy you, then just buy the property as it is currently registered.

The solicitor work for you, so you can instruct him as you wish.

Of course, if you are getting a mortgage, he also works for the lender, so if the value of the property is reduced as a resut of this lot being excluded, your lender might refuse to lend....

You can always seek to buy, or claim via Adverse Possession, the additional 'small piece of land' later.

To this end, ask the sellers to provide a 'Statement of Truth' showing how many years they have used that land as their own.

https://www.gov.uk/government/publications/adverse-possession-of-1-unregistered-land-and-2-registered-land

Bexxie1979

The solicitors have told me it’s unregistered. Looking at the picture of the map they sent me it appears that most of the houses on the street are the same. 

They have told me that it would mean that The mortgage company wouldn’t lend to us on this basis and that the only option is the current owners need to register it.

I have no experience at all with any of this so am blindly accepting what the solicitor is telling me.  

davidmcn

Bexxie1979 said:

They have told me that it would mean that The mortgage company wouldn’t lend to us on this basis

Has anybody bothered asking them? The solicitors are correct in saying that they can't just proceed without checking the lender is also happy to accept the position, but if the bit in question isn't a significant size (and doesn't e.g. have a building on it or used for access etc) then it's probably irrelevant, just needs the valuer to confirm that to the lender.

Bexxie1979

There is rear access.

I think I shall give Halifax a call tomorrow to find out. I’m just going on what the solicitors have told me.

Thanks for the helpful comments.

greatcrested

To be clear, the property itself is registered yes? In the seller's name?

It's just this small plot that is unregistered?

Is the rear access significant?

A small plot at the end of a large garden would reduce the value of the main property insignificantly, though if the rear access had some significant importance that might reduce the value a bit more.

And it is the value of the property that the mortgage lender is concerned about. If they had to sell after repossessing, would they get back their loan?

Phoning the Halifax will not help. The adviser you speak to, even if you get to a manager, will have no idea of the respective values with or without the extra plot. They will probably want a surveyor to do a 2nd Valuation. Chances are this will be the same as the first one, though it might be a bit less.

Bexxie1979

Yes the property and the 120 ft garden is registered. Just literally a 6 foot strip at the bottom of the garden with a gate which backs onto farmland.
We have a fairly big deposit so I wouldn’t have thought it would matter too much to the lender.
The whole thing is driving me (and the seller who i am in contact with) insane!

ProDave

Proceed on the basis the garden is 6' shorter and has no legal rear access.  As long as the valuation on that basis is okay I don;t see an issue.