Land Registry Title Merger

pkdotm75

Hi,

I have a house with mortgage which I bought 22 years ago. It has x2 Title Deeds, one Freehold, one Leasehold, both covering the same Title Plan. The Leasehold Title has the mortgage company named on charge and includes an easement which I think pertains to right of access for the neighbours. I want to sell and the buyers lenders won't accept it in it's twin titled state and have requested I merge the Titles into one Freehold. Can anyone help as my brains frazzled, I understand there's someone called @Land_Registry who knows there stuff who might be able to help? Title Numbers are WYK676164 and WYK428703. Basically, I would like to know if it's doable, how to do it and how long it could take?

Many thanks in advance,

Paul

Maximus5

There is a land registry thread, might be worth posting in there to make sure they see it. We had the same, held both a freehold and leasehold title. Our buys lender took a while to decide if it was freehold or not but eventually decided it was ok without having to have the titles merged 

loubel

The solicitors will put the merger in the paperwork so that it takes place on completion so it's not something you need to do anything about.

propertyrental

Who is shown as owning the leasehold?

If the a mortgage company is listed on the leasehold title, do you believe you have a mortgage with them? For how much? To be paid off by when?

Does your mortgage lender have a charge listed against the freehold? Does any other lender or bank?

loubel

I don't think the OP has any questions about their ownership or mortgage. Although it's unusual for the lender not to have wanted a charge over both titles, the value is currently in the leasehold one so is the one you would definitely expect to be charged.

pkdotm75

Thanks for the replies.

I have a mortgage on the property with the lenders being named on charge on the leasehold.

The buyers lenders won't accept a twin titled deed so cannot proceed in current situation.

eddddy

pkdotm75 said:

Thanks for the replies.

I have a mortgage on the property with the lenders being named on charge on the leasehold.

The buyers lenders won't accept a twin titled deed so cannot proceed in current situation.

But the buyer's solicitors can 'fix the problem' on completion (by merging the titles).

Is there a reason the buyer's solicitors won't do that?

For example, is it because the buyer has chosen a 'bulk online conveyancer' who will only do simple, straightforward things? And they don't have the expertise to merge titles?





edit to add...

pkdotm75 said:

The Leasehold Title ... includes an easement which I think pertains to right of access for the neighbours.

Are you mentioning the easement because your solicitor said it was an issue?

My understanding is that easements in leases used to be an issue for merging titles, but since an appeal court ruling in 2007, it's been clarified that an easement in a lease can be transferred to the freehold, if the titles are merged. (But check the details with your solicitor.)

Land_Registry

it’s doable and It can be expedited to reduce the wait time 
Practice Guide 26 explains how to do it.
https://www.gov.uk/government/publications/leases-determination
looking at later posts too there’s a couple of things to flag 
1. lenders offer a range of mortgage products each of which have a different risk profile and acceptance process. So whilst one lender/product may say Yes to charging both FH and LH at same time others may not 
2. The ‘big’ point to consider here is the easement as IF that’s only for the benefit of the LH it will be lost when the lease is determined. There’s the option to get a new right granted by the neighbour etc but that’s extra cost and work 
The buyer may be aware of that and/or can’t change lender/mortgage product and in some ways it’s not your problem as they’re insisting on the lease being determined. But worth pointing out here 

pkdotm75

Thanks for the above, I've spoken to my solicitor who has said he can organise the transfer once I've redeemed my mortgage (I'm happy to do this) and says it takes 2 weeks.

The buyers solicitor has told them that they believe the changes could take  6 - 12 months due to Land Registry backlogs.

Do you happen to have any idea how long it should take in the current climate? The buyers have an approved offer at pre-Truss/Kwarteng rates which expires on 8th March 2023 hence their concern over timescales, etc

Land_Registry

pkdotm75 said:

Thanks for the above, I've spoken to my solicitor who has said he can organise the transfer once I've redeemed my mortgage (I'm happy to do this) and says it takes 2 weeks.

The buyers solicitor has told them that they believe the changes could take  6 - 12 months due to Land Registry backlogs.

Do you happen to have any idea how long it should take in the current climate? The buyers have an approved offer at pre-Truss/Kwarteng rates which expires on 8th March 2023 hence their concern over timescales, etc

As posted expedition can reduce the wait time markedly. That should get it considered and processed within 2 weeks. Everything then hinges on it being in order of course. 

Just ensure whoever is applying knows that by expediting it the changes shouldn’t take as long as they appear to think. Surprised they haven’t mentioned that to them