How to proceed with a property purchase when you find a problem with the boundary plan
The legal process of buying a property is long and complex. Your solicitor will seemingly disappear for weeks, leaving you feeling like everything is on pause and there is no progress. You will likely only hear from them if they uncover a problem. But what kind of problems could they find?
The legal process of buying a property is long and complex. Your solicitor will seemingly disappear for weeks, leaving you feeling like everything is on pause and there is no progress. But, they are busily working behind the scenes, checking plans and searches and negotiating contract terms with the other solicitors.
You will likely only hear from them if they uncover a problem.
But what kind of problems could they find? And how should you handle them?
A common issue at this property purchase stage is a discrepancy with the boundary plans. Often lines on the plan don't quite line up perfectly with the fences of the property boundary.
What can you do if there is an issue with the boundary plan? Is it a lost cause, and is the property unsaleable? Do you have to pull out and find a different house to buy?
In a short answer, no!
Boundary issues can come up on lots of properties. After all, the title plan is simply a red line around the supposed boundary of the property, and there are plenty of ways that this could be out slightly.
The best way to resolve the issue would be to have Land Registry amend the plan, and then you can proceed with the purchase. But that would take time, usually around 6 weeks, which is often impossible in a chain of connected sales.
The next best option would be to arrange for the amendments to be made to the plan with Land Registry at the point of completion, as Land Registry will be dealing with the registration of the property ownership changeover at completion anyway. The mortgage lender would need permission for this to occur. It can all be confirmed in a written undertaking by the solicitors and provided to the lender for approval.
The Land Registry department is busy and will not work on the plan for the property twice in a short time. Also, if you require the plan to be changed BEFORE proceeding further, there will be at least a 6-week delay to your moving date whilst the plans are amended.
So, the fastest solution will be to proceed with the plan to be amended based on a signed underwriting from the solicitors, approved by your lender. Then, when you complete the purchase, your new registration of ownership of the property will also have the amended plan attached to the registration.
If you are trying to work through the legal process of buying a property and have questions, get in touch. Our team of property experts have years of experience dealing with sales of property and can help to guide you through.