Sale fell through at last second due to 'leasehold interest not registered upon the freehold'

spartant333

Afternoon all,

First time buyer and first time poster.

After a lengthy process and on the day of exchange, our buyers solicitor has chosen not to exchange due to the' leasehold interest not being registered upon the freehold'.

Im in disbelief. I dont understand how this wasn't picked up at any point during the conveyancing.

My Fiance purchased the property 'shared ownership' in 2020. I wasnt involved in the process at that time.

What confuses me, is that we do have a leasehold title, and the freehold is owned by the association.

Their grievance is that ' although both the leasehold title, and the freehold title are in order - the leasehold interest is not registered upon the freeholds section C charges'.

Ive spoken at length to land registry, who claim it cannot be expedited - they have also advised it can take up to a year as there are 8 prior applications.

Has anyone come across a similar situation? 

Would this be a discussion between solicitors, or is the sale dead?

A few facts:

• The property is an apartment in a shared block of 6

• At the time of original purchase the apartment was a new build (2.5 years old)

• We do have a perfectly in order leasehold title 

• The property is shared ownership, with the association 'Sage' owning the freehold and a percentage of the apartment.

Thanks so much,

T

user1977

"Not registered" as in it has been submitted but is still pending completion of registration?

EssexHebridean

Is the situation that the registration of the LH title into your fiancee's name is still in a queue waiting at the LR? For a purchase in 2020 this is - bizarre as it seems - still possible. The LR WILL expedite where there is a need for it due to a pending sale, or remortgage, though. 

propertyrental

Might be worth posting on the Land Registry thread here (LR reps reply there).

Make sure you clarify the facts eg as per user1977's question above, and the '8 prior applications'. Are these all applications against the freehold?

spartant333

user1977 said:

"Not registered" as in it has been submitted but is still pending completion of registration?

Hi,

The freehold title has been registered. As i understand it, and as the solicitor words it -' The properties leasehold interest  needs to be registered upon the freehold, Showing in the C section of charges'.

Ive spoken to Land registry at length, because the freehold is a 'developers' freehold, there are multiple in-front of it.

spartant333

EssexHebridean said:

Is the situation that the registration of the LH title into your fiancee's name is still in a queue waiting at the LR? For a purchase in 2020 this is - bizarre as it seems - still possible. The LR WILL expedite where there is a need for it due to a pending sale, or remortgage, though. 

The freehold title has actually been registered, that came through in October. As i understand it: The properties leasehold interest needs to be registered upon the freehold, Showing in the C section of charges.

So it appears to be something else entirely! 

propertyrental

Yes freeholds that are subject to a lease have that lease noted in the Charges register.

By the way - no need (or point) in repeating the same explanation in response to every reply!

AmiNicoleKnight

Hi, I am having this issue right now with selling mine? Did you resolve this?