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Lease Plan Error Before Buying
Moneysavingquery
Posts: 2 Newbie
Hello, My partner and I are prospective first time buyers about to buy a 'Tyneside Flat' property. We have closed our H2Bs, have a mortgage approved and all ready to go when our solicitor has just informed us that there is an error on the lease plan.
Essentially the plan shows that we do not have the shared pathway in front of the property (we are the upstairs flat and share a lease with the downstairs one). The lease itself contains the correct clause, it is just the plan itself that is incorrect. The lease and lease plan for the downstairs flat is also correct showing the shared land in front of the property. Our solicitor has raised this with the Vendors solicitor which they have said that as the other flat lease and plan is correct and given the Tyneside flat arrangement, the intention and right is clear.
Our solicitor is now saying we need an indemnity policy to provide protection for us and our mortgage should a dispute arise in the future. He has gone to the vendors solicitor to ask to pay for this as it is a defect in their lease which we await their response (if they refuse it falls on us to pay for it). The issue is, if we go ahead and obtain the indemnity policy, a buyer in the future may refuse this when we come to sell the flat and insist on the lease plan being corrected. This would need the permission of the downstairs flat and their mortgagee if they have one and can apparently cost several thousand pounds to correct and may take several weeks.
What is the best course of action to now take in this scenario? Our solicitor has basically said that the venders are unwilling to correct the lease plan so we are unsure what to do now.
Essentially the plan shows that we do not have the shared pathway in front of the property (we are the upstairs flat and share a lease with the downstairs one). The lease itself contains the correct clause, it is just the plan itself that is incorrect. The lease and lease plan for the downstairs flat is also correct showing the shared land in front of the property. Our solicitor has raised this with the Vendors solicitor which they have said that as the other flat lease and plan is correct and given the Tyneside flat arrangement, the intention and right is clear.
Our solicitor is now saying we need an indemnity policy to provide protection for us and our mortgage should a dispute arise in the future. He has gone to the vendors solicitor to ask to pay for this as it is a defect in their lease which we await their response (if they refuse it falls on us to pay for it). The issue is, if we go ahead and obtain the indemnity policy, a buyer in the future may refuse this when we come to sell the flat and insist on the lease plan being corrected. This would need the permission of the downstairs flat and their mortgagee if they have one and can apparently cost several thousand pounds to correct and may take several weeks.
What is the best course of action to now take in this scenario? Our solicitor has basically said that the venders are unwilling to correct the lease plan so we are unsure what to do now.
0
Comments
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I would take the indemnity policy and get on with it. In the circumstances I'm not sure how "difficult" the neighbours could ever be about it, given it's obvious what the error is.0
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