Change of Freeholder Holding up Sale

GangsaGuy

I am in the process of buying an apartment on leasehold. The building is a converted office block. Since having the offer accepted, the developer has sold the freehold to a third party.  My lender's solicitor now says that they cannot complete until the transfer of freehold is registered with the land registry.  My solicitor tells me this can take up to 12 months and that the lenders solicitor is being ludicrous as this is quite common in new build properties and is not a concern. The word back from my broker is that what the lender and their solicitors are stating is correct, it puts the Bank at significant risk if the Freehold title isn’t complete prior to being able to register the leasehold title.  They have suggested the sellers solicitors expedite the registration at Land Registry.  My solicitor is now trying to contact the seller's solicitor to start the process.  In the meantime, I have been on the Land Registry website and found that the buyer can also request that the registration be expedited, which I have done hoping that this might jump-start the process. My question is directed to the Land Registry: How long would the expedited process take? I am at risk of losing the apartment because I have been informed that, even though the developer initiated the sale of the freehold, they may pull this plot sale if the registration takes too long.  Enquiry reference: 211123-005824 Application reference: Title number: NYK451667

Any comments from members on the solicitors positions would also be appreciated. 

zagubov

GangsaGuy said:

I am in the process of buying an apartment on leasehold. The building is a converted office block. Since having the offer accepted, the developer has sold the freehold to a third party. 

My lender's solicitor now says that they cannot complete until the transfer of freehold is registered with the land registry.  My solicitor tells me this can take up to 12 months and that the lenders solicitor is being ludicrous as this is quite common in new build properties and is not a concern.

The word back from my broker is that what the lender and their solicitors are stating is correct, it puts the Bank at significant risk if the Freehold title isn’t complete prior to being able to register the leasehold title.  They have suggested the sellers solicitors expedite the registration at Land Registry. 

My solicitor is now trying to contact the seller's solicitor to start the process.  In the meantime, I have been on the Land Registry website and found that the buyer can also request that the registration be expedited, which I have done hoping that this might jump-start the process.

My question is directed to the Land Registry: How long would the expedited process take? I am at risk of losing the apartment because I have been informed that, even though the developer initiated the sale of the freehold, they may pull this plot sale if the registration takes too long.  Enquiry reference: 211123-005824 Application reference: Title number: NYK451667

Any comments from members on the solicitors positions would also be appreciated. 

Just breaking up the block of text so that more people will answer it.

GangsaGuy

I've reposted under the heading "Land Registry questions" as the question is directed to them and they appear to monitor this thread.

AFF8879

GangsaGuy said:

The word back from my broker is that what the lender and their solicitors are stating is correct, it puts the Bank at significant risk if the Freehold title isn’t complete prior to being able to register the leasehold title. 

That’s just it though, the freehold title isn’t being created (this would have already been done), it’s just being transferred. I’m not a qualified solicitor by any means but I’m inclined to agree with yours here, it sounds like the lender’s representation is being overly cautious 

user1977

I agree, no idea what risk the lender's solicitor thinks they're trying to protect against. If the purchase of the freehold has completed, the new freeholder is the freeholder, irrespective of whether the Land Registry has completed registration of their title.