Completing purchase with pending TP1

Sward88

I'm currently selling my house and we're otherwise ready to proceed, but a historic boundary correction and pending TP1 application is causing a problem.

In 2023, it was discovered that the fence between my property and my neighbour's had originally been built in the wrong place. To correct this, I transferred a very small strip of land from my title to my neighbour using a TP1. The transfer completed in 2023 and the boundary/fence has been treated accordingly ever since.

Unfortunately, my neighbour's failed to register the TP1 with Land Registry at the time. They eventually submitted it recently, while my current house sale was already progressing.

HMLR has now raised three requisitions, 2 of which are resolved. The other one relates to the existing mortgage charge over my title. (I subsequently remortgaged so my current lender has a charge over the existing title, including the strip that was transferred)

The third point is now causing the difficulty.

My current solicitor has started the process of getting the bank to release/discharge their charge from the small piece of land transferred in 2023, however we are unsure of how long this will take. However, we're also about to sell the entire property, at which point the HSBC mortgage will be redeemed and its charge over the whole title discharged anyway.

My understanding is therefore that, following completion of my sale, the bank's charge causing the TP1 requisition would cease to exist. The discharge could then be provided to the solicitor/HMLR to satisfy the outstanding requisition and allow the TP1 registration to complete.

The suggestion being considered is therefore that my buyer completes the purchase while the TP1 application remains pending, with my solicitor giving an undertaking to provide the lender's discharge to Conveyancing / Land Registry advice needed – pending TP1 holding up house sale

The difficulty is that the buyer's solicitor is advsing that this would be unacceptable to the lender

I'm trying to understand:

• Is completing the sale while the TP1 remains pending, backed by a solicitor's undertaking regarding the discharge, a reasonable conveyancing solution?
• Would redemption of the mortgage on completion normally satisfy the substance of HMLR's charge requisition?
• Is there any other practical mechanism (retention, indemnity, undertaking etc.) that could give the buyer/buyer's lender sufficient protection to allow completion?

The frustrating part is that the underlying land transfer isn't disputed by anybody, the TP1 was signed and completed in 2023 and relates to a tiny boundary strip. The issue exists because it wasn't registered at the time and has now collided with my house sale.

Any views from conveyancers/property lawyers or anyone who has dealt with something similar would be very welcome. as soon as it becomes available following completion. The TP1 could then be completed at Land Registry.

user1977

Sorry, no idea why that isn't acceptable to the buyers. In a straightforward transaction it's normal to rely on a solicitor's undertaking for the discharge of the mortgage, I don't see why the transfer of title makes any difference to that.

Sward88

Thanks. I have a feeling it could be risk aversion on the buyer's part. I do wonder if offering a retention for a period of time would settle their fears

sheramber

Your post infers it is the buyers’s lender who does not agree, it the buyer.

Land_Registry

Whilst the sequence of events you refer to are possible in conveyancing terms if the buyer's mortgage lender says No you will have to pursue your lender for the discharge of part (form DS3)

It really doesn't matter if it's possible from your conveyancing perspective as it's the buyer's lender who has the final say. The mortgage product and offer in place simply won't allow the conveyancing to go ahead whilst the pending TP1 application is in play as that's the risk assessment attached to that specific mortgage offer.

You/your conveyancer need to chase your lender for the DS3