Judy C Posted March 2, 2020 Posted March 2, 2020 We are part-funding our build through a self-build mortgage. We did all the research, got good advice, got everything together, jumped through all the hoops we needed to. Applied for the mortgage and got an offer 3 months ago. The plot involves transferring land between us, to separate it from the house we still live in. We've just been told that the land registry will take at least another 6 weeks as someone senior needs to review it. This is just a warning for anyone looking for finance this way to allow many months more time than you could possibly imagine you would ever need. 1
Critical Path Posted March 3, 2020 Posted March 3, 2020 We are currently doing exactly the same and had to change solicitors as our usual guy was proving hard work. we have had to apply to register the plot in my name only as opposed to the joint names on the current larger plot, all with the blessing of HSBC whom we still have a mortgage with whilst we build. The new solicitor didn't seem to think it would take longer than a month.... its only been a week so far!!
Judy C Posted March 3, 2020 Author Posted March 3, 2020 Well we have started our build, confident that the loan would be in place ages before we ran out of our own funds - now we are beginning to worry!
Moonshine Posted March 3, 2020 Posted March 3, 2020 23 hours ago, Judy C said: We are part-funding our build through a self-build mortgage. We did all the research, got good advice, got everything together, jumped through all the hoops we needed to. Applied for the mortgage and got an offer 3 months ago. The plot involves transferring land between us, to separate it from the house we still live in. We've just been told that the land registry will take at least another 6 weeks as someone senior needs to review it. This is just a warning for anyone looking for finance this way to allow many months more time than you could possibly imagine you would ever need We are looking to do this, so i am interested in this potential pit fall. Could you give me a summary of what your process was as a step by step approach?
Judy C Posted March 3, 2020 Author Posted March 3, 2020 Spend week talking to brokers and trying to compare costs and second guessing how long you need finance for. Find a good solicitor (if one exists) who knows what they are talking about. Have a really good breakdown of your costs - you won't get a loan if the numbers don't stack up. Dot all the i's, cross the t's and hopefully get a mortgage offer. Hope your solicitor (who has otherwise been very good) doesn't sit on the land registry application for 6 weeks before sending it in. Hope the land registry don't take more than 6 weeks to sort things out and that you can complete your mortgage before the money runs out. We have enough funds to pay for work already done (to soleplate); for the timber frame - due in 10 days, but might struggle to carry on after that if the land registry still delays - 6-8 weeks is really all we have before things get sticky.... 1
Temp Posted March 3, 2020 Posted March 3, 2020 I believe the reason for the delay mentioned in the OP is because the land registry don't like splitting land into two titles unless one is being sold at the same time. One reason for this is because you cannot grant yourself a covenant (or an easement?). So for example I don't think you can give yourself a right to run services over the existing plot if you still own both.
Temp Posted March 3, 2020 Posted March 3, 2020 Google found... https://www.morrlaw.com/commercial-property-law/easement-rights/ To be an easement certain criteria need to exist: snip 3) The owners of the two parcels of land cannot be the same – this means you cannot grant the easement to yourself.
Judy C Posted March 4, 2020 Author Posted March 4, 2020 You are right - but we thought our solicitor had raised that and dealt with it already. Maybe he hasn't!
Moonshine Posted March 4, 2020 Posted March 4, 2020 16 hours ago, Temp said: 3) The owners of the two parcels of land cannot be the same – this means you cannot grant the easement to yourself. Oh, interesting to know, as part of the foundation footing of the new house i am planning to build would be on the existing houses land (the external wall would be on the boundary line), and I think i would have to put a convenient on the existing house's title that building in that small section of land (8m x 0.5m) would not be permitted. Also the plan would be to run the drain of the new house in the land of the old house as a shared drain, and there may be issues with this as would this need an easement?
Ferdinand Posted March 4, 2020 Posted March 4, 2020 (edited) There's a thing called a "quasi easement" that is relevant here, but I cannot remember the detail. I think it has to do with intention to create an easement. Edited March 4, 2020 by Ferdinand 1
Temp Posted March 4, 2020 Posted March 4, 2020 6 hours ago, Judy C said: You are right - but we thought our solicitor had raised that and dealt with it already. Maybe he hasn't! Are your surnames the same for both plots?
Judy C Posted March 4, 2020 Author Posted March 4, 2020 Yes surnames are the same for both plots (actually there are 3 plots involved).
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