Can a flat be sold with an incorrect title?

1122abc

A property is comprised of two flats as share of freehold. The lease was updated in December 2021 during the sale of the one the flats. This sale was completed in December. There are delays at the land registry, confirmed by calling them. The title of the sold flat is still in the seller’s name and cannot be changed to the buyer’s until Dec 2022. 

The second flat is now being sold. Can this second flat complete on a sale despite the title of the other flat having the name of the sellers, not the current owners? The land registry says maybe but I’d like to know a bit more about why this is?

user1977

1122abc said:

The title of the sold flat is still in the seller’s name and cannot be changed to the buyer’s until Dec 2022. 

What do you mean by that? I'd expect there to have been an application for registration submitted - the fact it might take a while for the LR to process isn't really relevant from a legal point of view.

In any event, I can't see why it makes a difference to the title of the other flat.

What's your involvement?

1122abc

user1977 said:

1122abc said:

The title of the sold flat is still in the seller’s name and cannot be changed to the buyer’s until Dec 2022. 

What do you mean by that? I'd expect there to have been an application for registration submitted - the fact it might take a while for the LR to process isn't really relevant from a legal point of view.

In any event, I can't see why it makes a difference to the title of the other flat.

What's your involvement?

The application has been submitted to change the title to the buyer’s names but this will take at least a year from the sale. I’m the first buyer. Land registry said it might be problem for the sale of the other flat, just trying to understand why. 

user1977

1122abc said:

user1977 said:

1122abc said:

The title of the sold flat is still in the seller’s name and cannot be changed to the buyer’s until Dec 2022. 

What do you mean by that? I'd expect there to have been an application for registration submitted - the fact it might take a while for the LR to process isn't really relevant from a legal point of view.

In any event, I can't see why it makes a difference to the title of the other flat.

What's your involvement?

The application has been submitted to change the title to the buyer’s names but this will take at least a year from the sale. I’m the first buyer. Land registry said it might be problem for the sale of the other flat, just trying to understand why. 

No idea. Have the owners of the other flat been in touch with you about it?

If there's a reason for your application to be expedited, you (or your solicitors) could do that, but I can't see that there is a good reason from what you've told us.

kingstreet

I was looking at a "normal" sale from September 2021 today. It is not yet on the LR figures.

We have had mortgage completions delayed where flats have remained unregistered nearly two years after sale.

1122abc

user1977 said:

1122abc said:

user1977 said:

1122abc said:

The title of the sold flat is still in the seller’s name and cannot be changed to the buyer’s until Dec 2022. 

What do you mean by that? I'd expect there to have been an application for registration submitted - the fact it might take a while for the LR to process isn't really relevant from a legal point of view.

In any event, I can't see why it makes a difference to the title of the other flat.

What's your involvement?

The application has been submitted to change the title to the buyer’s names but this will take at least a year from the sale. I’m the first buyer. Land registry said it might be problem for the sale of the other flat, just trying to understand why. 

No idea. Have the owners of the other flat been in touch with you about it?

If there's a reason for your application to be expedited, you (or your solicitors) could do that, but I can't see that there is a good reason from what you've told us.

Yes they have. Land registry can’t expedite it on my behalf. Not sure what else I need to do or why it’s an issue. Might call again to speak to someone else tomorrow. 

user1977

1122abc said:

user1977 said:

1122abc said:

user1977 said:

1122abc said:

The title of the sold flat is still in the seller’s name and cannot be changed to the buyer’s until Dec 2022. 

What do you mean by that? I'd expect there to have been an application for registration submitted - the fact it might take a while for the LR to process isn't really relevant from a legal point of view.

In any event, I can't see why it makes a difference to the title of the other flat.

What's your involvement?

The application has been submitted to change the title to the buyer’s names but this will take at least a year from the sale. I’m the first buyer. Land registry said it might be problem for the sale of the other flat, just trying to understand why. 

No idea. Have the owners of the other flat been in touch with you about it?

If there's a reason for your application to be expedited, you (or your solicitors) could do that, but I can't see that there is a good reason from what you've told us.

Yes they have. Land registry can’t expedite it on my behalf. Not sure what else I need to do or why it’s an issue. Might call again to speak to someone else tomorrow. 

It's really your neighbour's problem (if it's a problem at all), I wouldn't bother doing the running around for them.

eddddy

I'm not sure if this might have something to do with it... a 'share of freehold' comprises of 2 things:

Option A ) Those 2 things might be:

1. A leasehold flat
2. Joint ownership of a freehold building (i.e. the 2 leaseholders jointly own the freehold building)

Option B ) Or those 2 things might be:

1. A leasehold flat
2. A share in a company (And the company owns the freehold building)

If the set-up is option A - every time one of leasehold flats is sold, the title of the freehold building has to be transferred to the revised 2 joint owners. So a transfer of the freehold building occurred in Dec 2021. Maybe that's what can't be registered until Dec 2022.

And the freehold title would need to be transferred again when the other leasehold flat is sold. But I'm surprised that a delay in registration would prevent the freehold title being transferred again - but I don't know much about that kind of stuff.


The Option B set-up would have avoided this complication.

user1977

eddddy said:

And the freehold title would need to be transferred again when the other leasehold flat is sold. But I'm surprised that a delay in registration would prevent the freehold title being transferred again

It doesn't, it's just that some solicitors appear to be lazy/risk-averse and can't be bothered dealing with anything which involves ongoing applications for registration. And in this case I don't see why it would matter, if the "risk" from the new buyer's point of view is (at worse) that the other half of the freehold remains in the name of the old owner of the OP's flat.

But like I said, it's for the OP's neighbour's solicitor to sort out, not for the OP to fret about.

Land_Registry

We wouldn’t be able to tell you whether it’s a problem or not or maybe as you are referring to completion. Not registration, which is what we do. 

As others have posted if you’ve got 2 leaseholds and each lessee owns part of the freehold then when you complete on the lease sale/purchase you also complete on the freehold transfer to other lessee plus new one. That application is in and protected. 

Second flat being sold so completion on that happens as normal. Freehold transfer can also complete as they know what the freehold register says, have a copy of the freehold transfer, and can confirm all of this to ensure the conveyancing ducks are all in a line. 

However whether you/they do depends on the conveyancer and any lender. The latter often has more say as their mortgage product decides on the level of risk it works on. 

So from a registration perspective all is possible without expediting things. But as we come after completion the Q is not one for us to answer as it’s solely down to conveyancer/any lender