Complicated property purchase!

KatieL767

I’m after some advice… I got a decision in principle from a lender (via a broker). However after the surveyor had been they have withdrawn this offer. 1) because it has an annex - sort of! The house was changed to allow the daughter to move in, but there is still only 1 front door and it’s not separate from the rest of the house. It just has 2 kitchens! There is also only 1 council tax bill for the house. 

The other reason it’s been declined is because it’s currently a small livery yard. The owners are retiring. I’m going to be using it for my own horses only. So not a business, which is how the lenders are viewing it (NatWest and nationwide have both refused a residential mortgage). Even though the advert doesn’t state that any business is included in the sale. It’s says perfect for those wanting a small holding! 

The land is on one title deed and the house and garden on another. 

I’ve gone to a local BS and got a mortgage via a new broker. However they require the title deeds to be amalgamated before the sale. So the sellers have applied for this but it’s been refused as they are under different names. Land - under the daughters name and house / garden under the parents name. Their solicitors have said that the daughter does not want to transfer her legal interests albeit temporarily, particularly when there is no commitment from me. But I’m not sure what commitment they want from me! 

This makes me a bit suspicious that perhaps there is more than meets the eye with the property. All searches have come back fine. 

Would this affect the value of the property, makes me wonder if I’m over paying? 

I’m hoping the building society will accept amalgamation upon completion - if not it will be a struggle to find a new lender. 

If they don’t want to help themselves then they will have the same issue with all other buyers, unless they can find a cash buyer.

 

NameUnavailable

If they are (intending) to sell the land and buildings as one sale, why is the daughter causing issues?

Seems simple from your point of view - either they do what is required to make it mortgageable or you need to walk away.

KatieL767

NameUnavailable said:

If they are (intending) to sell the land and buildings as one sale, why is the daughter causing issues?

Seems simple from your point of view - either they do what is required to make it mortgageable or you need to walk away.

Yes it’s one amount for the lot, not separate transactions. I don’t understand why they didn’t get advised by their solicitor earlier in the process that this would be an issue. My offer was accepted in March so it’s dragged on! 

user1977

KatieL767 said:

Their solicitors have said that the daughter does not want to transfer her legal interests albeit temporarily, particularly when there is no commitment from me. But I’m not sure what commitment they want from me! 

A contract would make sense...

KatieL767

user1977 said:

KatieL767 said:

Their solicitors have said that the daughter does not want to transfer her legal interests albeit temporarily, particularly when there is no commitment from me. But I’m not sure what commitment they want from me! 

A contract would make sense...

I’m willing to sign a contract, but it’s chicken and egg. I don’t want to hand over a deposit if I don’t know the issue with the deeds can be resolved. If the issues cannot be resolved then I’ve lost a tonne of money. They also haven’t asked for a contract to be signed yet. 

user1977

KatieL767 said:

user1977 said:

KatieL767 said:

Their solicitors have said that the daughter does not want to transfer her legal interests albeit temporarily, particularly when there is no commitment from me. But I’m not sure what commitment they want from me! 

A contract would make sense...

I’m willing to sign a contract, but it’s chicken and egg. I don’t want to hand over a deposit if I don’t know the issue with the deeds can be resolved. If the issues cannot be resolved then I’ve lost a tonne of money. They also haven’t asked for a contract to be signed yet. 

If by "the issue with the deeds" you just mean the amalgamation of the title, that can be a condition of the contract. It isn't rocket science for the solicitors to sort this out - though obviously it isn't the only issue you have at the moment.

NameUnavailable

user1977 said:

KatieL767 said:

Their solicitors have said that the daughter does not want to transfer her legal interests albeit temporarily, particularly when there is no commitment from me. But I’m not sure what commitment they want from me! 

A contract would make sense...

That would happen anyway on exchange (of contracts). Not sure how the OP could make any other contract that the solicitors would be comfortable with.

Either the vendors want to sell or they don't and this issue will affect the next prospective purchaser if the OP pulls out.

user1977

NameUnavailable said:

user1977 said:

KatieL767 said:

Their solicitors have said that the daughter does not want to transfer her legal interests albeit temporarily, particularly when there is no commitment from me. But I’m not sure what commitment they want from me! 

A contract would make sense...

That would happen anyway on exchange (of contracts). Not sure how the OP could make any other contract that the solicitors would be comfortable with.

Either the vendors want to sell or they don't and this issue will affect the next prospective purchaser if the OP pulls out.

As I said, if the only complication from a "normal" purchase is this requirement for the titles to be amalgamated before completion, then that could be added as a condition of the contract. That ought to give the vender-daughter sufficient comfort to get on with it (even though it sounds like a pointless hurdle brought in by the OP's lender). Not sure why the solicitors can't advise on this though maybe they just CBA.