Buying remainder of property title

[Donpich]

Hi all,

I am about to exchange on a property buy, with mortgage.
The title register and plan, as currently held by HMLR, includes a dwelling house and a garage.

The seller sold the garage separately to another buyer, I have a copy of the TP1 which has been completed end of October, and, I believe, has been submitted for registration to HMLR.

At first, the seller's sollicitor provided mine with a second TP1 for the remainder of the title (the house). This was before the completion for the garage.

Now that the sell of the garage is completed, seller's solicitor said that TP1 is not needed, but TR1 for the remainder of the title (the house).

I have been asked by my solicitor to sign the TR1 as well as modified, by the seller, title plan now excluding the garage.

So far it seems ok even though I find a bit strange that seller can modify title plan, but ok, why not...

Below is a message sent by my solicitor to me:

We have confirmation that the garage has now completed however what would happen now is that the transaction is completed that Land Registry will provide an updated property register which would not include the garage. Although we have confirmation the garage has completed is not yet registered with Land Registry therefore the risks would be after completion there could be issues out of our control to be able to register the house in your name.

The sellers solicitors have advised they will assist with any issues post completion however you have to confirm whether your happy that there could be these potential issues after completion.

This sounds super risky to me as I am unable to wait for updated register as it will take HMLR months to publish it.
I do not really understand why it would be an issue to register me as legal owner of the title remainder as I think my case is probably not that common but at least not really unusual either.

I am scared to have to fight, after completion, to be registered, with the potential time and legal costs which could be involved.

Also, I really do not trust seller's solicitor will "assist post completion", as mine by the way. They will get their money, full stop.

What do you think? Should I go ahead in this situation?

[islandgirl]

Does the mortgage provider know about this issue? I would not go ahead until the situation is properly resolved.

[atticus]

I agree with IslandGirl.

And you are clearly not happy to take this risk, so don't do it.

[dslippy]

Your solicitor is doing you a proper favour. The TP1 for the garage will/may leave entries on the register for what is left of the title. You do not know exactly what these will be.

Have you seen the TP1 for the garage? What plan was used?

[Donpich]

islandgirl I doubt lender is aware of this. What do you mean by "properly resolved"? To wait for the updated register?

atticus I am actually realising that I forgot, in my original post, to ask how it is possible that such "deadlock" situation could happen, it is surely not an uncommon procedure, no?

dslippy They are doing me a favour by informing about the risk? Well, I consider this is what I pay them for, as well as finding solutions
By saying "be issues out of our control to be able to", they are clearly discharging their responsibilities, don't you think?

I have the TP1 + plan signed by the seller. TP1 clearly mentions the title on paragraph 1 and "Garage at <address>" on paragraph 3
Used plan is the original one from HMLR which, I believe, has been printed B&W and garage edged in red, by the seller.

The TR1 I have signed indicates "<title> (Remainder of)" on paragraph 1, and house edged red on the plan.

So to me there is nothing dodgy.
There is a rentcharge on the property, but the seller is not aware of any claim in the last 10 years+. This is something I would be ok to take for the garage. Other than that it is crystal clear.

This is exactly why I am confused, I do not think there is anything problematic, registration with HMLR may take longer than usual but I am not planning to sell in the next few years anyway.

Something that is sure is that I cannot wait for the updated register as I would lose my mortgage offer which is fairly competitive in the current situation.

How could I mitigate the risk to bring it to an acceptable level?
I have asked the seller to provide, in written form, a confirmation that they will assist in resolving hypothetical issues.
Anything else I could request as backup to cover myself?

Thank you

[dslippy]

Recognise that there are things indeed out of their control. I am not saying there is anything dodgy, but I have too often seen the unpredicted arise from such registrations.

The red edging by the seller; does any part of it extend over the boundary of what you want to buy?

The TP1 is creating a new border between the two properties. What rights does it create and what rights are needed as between the two properties? Without seeing the plans it is not possible to predict what right will be necessary or will have been granted.

They can pay to expedite the registration of the TP1. It will not have a huge effect.

[islandgirl]

The lender may not be happy to proceed if there is any kind of issue with the boundary. I would want it sorted before completion. I would not rely on any confirmation signed by the seller to "resolve hypothetical issues". It is literally not worth the paper it is written on. Any other buyers will come up against the same issues so it should not prevent the seller from keeping to their agreement and waiting until this is all settled.