Advice Needed - Application for restriction on title put on property

GDB2222

ab1512 said:

We have already exchanged as the check with the land registry didn't take place until minutes before completion unfortunately. 

I have read that I could serve a notice to complete, but I think the issue there is that the Form N application is still on the land registry and my solicitor still cannot complete in these circumstances. This is to protect myself and the interests of the bank who the mortgage will be with. 

If I had known about this before exchange I would not have proceeded!

Okay, stay calm. You need advice from your solicitor, not a bunch of strangers on the internet.

Nevertheless, my  2p worth is:

The standard house buying contract requires the seller to provide the property free of any charges/mortgages/etc. The seller cannot do that, so it's the seller who will be in default on completion day, not you.

The contract does not make time of the essence. That means that you could get to completion day, the seller says 'sorry can't complete', but the contract still continues in force.

This is obviously no use to you, so there's a process whereby you serve a completion notice, which makes time of the essence, and gives the seller up to two weeks to get rid of the restriction, so that he can complete. You need to do this, but only after careful discussion with your solicitor. 

You need to make sure that the mortgage funds are available at short notice, just in case the seller gets rid of the charge and suddenly says he's ready to complete. This is a practical problem that you need to discuss with your solicitor (by email so you have a record).

At the end of the two weeks, assuming the charge is still in place, you can rescind the contract and get your deposit back. You will also theoretically be entitled to some compensation, which, frankly, you won't receive. 

ab1512

Thanks for the responses, very useful. There has been an update, the vendor thinks the application for restriction will be removed this week allowing for completion once this is confirmed. However, I shall believe it once it is confirmed by the other solicitor.

I have read through the standard house buying contract and it does look like the notice to complete is a realistic option should I feel it necessary. Hopefully it doesn't get to that stage as I am willing to let this go to the end of the month.