Flaws within the lease

Antithermal1723

Hello,

I am recent homebuyer of an 4 bed house and am in the process of exchanging contracts. The solicitors have recognised that the lease has a few minor flaws such as incomplete / missing information on the seller’s side that may impact myself if I were to sell the property in the far future. 

My lender has agreed for an indemnity policy but the solicitors have offered me the opportunity to vary the lease so that the flaws can be resolved. 

Would it be wise to fix these flaws with the lease now or proceed with indemnities policy route. I have yet to hear about a completion date. 

Thanks for reading. 

Browntoa

Fix the flaws now , saves issues when you sell 

ExEstateAgent

Fix now and I would expect the seller to meet any costs - it's their lease and their problem! 

eddddy

Antithermal1723 said:

My lender has agreed for an indemnity policy but the solicitors have offered me the opportunity to vary the lease so that the flaws can be resolved. 

What are the flaws?

Just to clarify - which solicitors are you talking about?  Do you mean that the freeholder's solicitors have agreed to a lease variation? 

gm0

If it is mortgageable and a regular lender is fine with the sticky tape (indemnity).  Then I'd be (as a seller) firmly in the space of we are done here.  Get on with it.  And not keen at all to fill the pockets of my solicitor and freeholder costs (for their solicitor) and delay the transaction with you while it all ticks over slowly in holiday season - all  solely for the tidy mind benefit of the buyer's conveyancer.  At my cost.  err....no.  We have a solution. Move on. Or move off.

So I'd say exchange or go away.

Bear that in mind before getting OCD over it.

Antithermal1723

eddddy said:

Antithermal1723 said:

My lender has agreed for an indemnity policy but the solicitors have offered me the opportunity to vary the lease so that the flaws can be resolved. 

What are the flaws?

Just to clarify - which solicitors are you talking about?  Do you mean that the freeholder's solicitors have agreed to a lease variation? 

The lease is missing the property plans as well as some lease clauses so the solicitors can’t establish a full report, for my reassurance, I ideally want a completed report but then again I’m delaying the process and getting farther to completion 😭

gm0

Title plan missing sounds more serious.   A picture of the structure showing the demised space alongside lease clauses on who is responsible for / has access to what for things like windows, balconies etc. is table stakes for a flat.  Car space demised numbers/pictures are very helpful evidence where there have been developer shenanigans on allocation and plot/parking space/lease numbering are messy.  Or people have been occupying the spaces of the carless for many years and don't like a newcomer claiming what is now their property. (Even if the occupation is just opportunistic - the evidence is helpful to shut it down)

So important comfort item about what is being bought (as known at LR).  Regardless of the legal advice you get on specific risks to conveyancing a title.  Personally I'd be downloading all the neighbouring titles and doing the jigsaw puzzle to look for anything odd.   Is there an X shaped hole in the other ones you are not buying - so that if you buy title X - you probably get what you think.  And have seen on site.  If it adds up. It is somewhat reassuring. If it doesn't look right. More digging required and handing the problem back to the seller.

Conveyancers don't go to site.  So are fine on the legal position but you need to be awake to accuracy/encroachment/plain old dishonesty about what has gone on prior.

eddddy

Antithermal1723 said:

The lease is missing the property plans as well as some lease clauses so the solicitors can’t establish a full report, for my reassurance, I ideally want a completed report but then again I’m delaying the process and getting farther to completion 😭

So it sounds like part of the lease is missing, as well as the lease plan.

Your initial post was a bit vague, and you haven't clarified whether the freeholder (and/or their solicitor) has agreed to a deed of variation - and who will pay for it. (The extra costs could add up to £1k or £2k - or more if the freeholder wants a chunk of cash in return for helping you and the seller out.)


If the freeholder has agreed, it's probably worth going for - and telling the seller that you want the seller to pay the costs.

If the freeholder hasn't agreed, it might be a prolonged fight - and ultimately the freeholder might simply refuse to do a deed of variation.