Splitting Freehold title before exchange of contract

Dear Sirs

I am in the process of buying a freehold property.

The property along with a plot next to it (same title) was bought by the current seller/developer in 2022. He developed a new detached house on the plot with planning permission. The seller put the old property on sale which I put an offer on and applied for mortgage. 

I have received a mortgage offer from the lender on the condition that I have to provide an updated title matching the description of the property before they can release the fund, becasue the valuer could not determine the value of the property based on the current/original title plan  which includes the new development (not included in the sale). 

My solicitors wrote to the Seller's Solicitors for an updated title of the property that I am buying or a confirmation that they made an application to split the title before we can go ahead with the sale. We have received the following response from the Seller's solicitor:

"We will not be making such an application prior to an exchange – you will appreciate our client cannot grant a Transfer of Part to themselves.  The Transfer of Part is being granted directly to your client and we see no reason why this cannot be registered by you upon completion as would be standard practice.

We look forward to your approval of the Transfer of Part."

Now my concern are as follow:

1) When the title split application can be made in the current circumstances? Before or after exchange of contract? (specially when completion wont take place until title split)
2) Who should make such application? seller or buyer?
3) What is the application fee for such application?
4) What documents are required from both the seller and the buyer for the application?
5) What is the time frame to get a decision on such application and is there any option to expedite the application in the current circumstances (considering mortgage offer will expire soon)? 
6) If there is an option to expedite the above application, what is the fees for it and how long will it take? 
7) Any usual/common grounds for refusal of such application that I should be aware of?
8) If the above application is refused (which means the lender won't release the funds and the sale cannot go ahead), will I be bound under the contract exchanged? what can be done to limit/exclude my liabilities?

As a First time buyer, I am really worried about the whole process and would highly appreciate any light on these. 

Kind regards

Md Mahar Abbasy

Dear Md - these things can be difficult especially as your lender's mortgage product has a certain set of requirements to be met before they will lend.
1) the seller can apply to 'split' their actual title and then transfer the whole of the part you are buying. Based on what you have shared you would need that split to happen before you could complete.
2) the seller

3) and 4) They

• must apply on form AP1, notifying us that a transfer is not required.

• must explain in a covering letter the reason why sub-division is required. 

• will need to clearly identify the extent on a plan that complies with our registration requirements. You can find out information about plans in HM Land Registry plans: guide overview (PG40).

• If the land is subject to a mortgage, consent to the subdivision of title must be obtained from the lender.

• There is a fee of £40.00. Cheques/postal orders should be made payable to HM Land Registry. We do not currently accept card payments for applications.

5) and 6) Lengthy so once they have applied they need to request that it is expedited to get it processed asap. Expedition generally means processed within 2 weeks but everything must then be in order. There is no fee for expedition
7) None - other than if their application is insufficient/poorly made
8) one for your conveyancer t answer
 

Hi, Thank you for your prompt reply. Its really helpful. So, just to clear my understanding, once the contract's been exchanged, seller will need to make the split application and once that approved then only they can transfer the title to us upon completion (as completion wont take place without the fund from lender).

But from the above reply from the seller's solicitor I understand they want our approval for Transfer of Part. Is it possible to transfer the title before completion, without splitting the title in this circumstances? 

which needs to happen first split or transfer?

Many thanks 

Md Mahar Abbasy 

MD - you need to rely on your conveyancer here re your exchange/completion. That's not something HMLR can advise you on.
You already know that the lender won't release the funds for your mortgage so it seems you have to reply on your seller to apply to split their title, expedite it and then you can presumably exchange/complete as appropriate.
There's no transfer option either way it seems unless and until the seller has split their existing title
Please speak to your conveyancer and rely on their advise re next steps and timings