Possessory title upgrade

Hi
We are purchasing a property with 5 titles and it turns out one of them, a small piece of land, is a possessory title. The seller who has lived in the property for 4 years said he’d forgotten about it and then found he did have an indemnity policy in his papers provided by the previous owner I think. It was registered as possessory in 2008 and our so our solicitor has asked his solicitor to apply for an expedited upgrade to absolute title. His response was it can’t be done because the owner hasn’t lived there for 10 years. Our solicitor has told him it can be done and how to go about it. 
Is our solicitor correct?
If the title is upgraded to absolute will the ‘defect’ still be noted?  For example

a note on the register to the effect that the land was formerly registered under possessory title and is subject to any restrictive covenants imposed before registration?
I’m concerned about resale in later years.

Our solicitor has said that the reason the possessory title was granted is unknown and it would take a significant amount of time to obtain that information as it is a non transactional question and yet our lender is most likely to want to know the quality of the title.
Can this question be expedited?


Many thanks
Chris

Hi Chris - upgrading a possessory title to absolute relies on a period of time having passed since that possessory title was granted. So you can have two or more owners during that time but the clock does not reset with each sale/purchase
Possessory title is usually granted as the deeds had been lost/were not provided when registering or if someone has claimed ownership, so through occupation of the land over time. 
A request to upgrade can be expedited on request by the conveyancer as there's an onward sale/purchase
If the title is upgraded mention of possessory title no longer exists but the protective entry re covenants etc remains

Than you for the quick reply. We’re getting very stressed over this and because the sellers solicitor is standing his ground and saying it can’t be done so we we had to make a decision to break chain so as not to lose our buyers.
With regards to the protective entry regarding any covenants how can we possibly know what this is if deeds etc were lost and the property not previously listed? 

We understand everything was originally owned by the local Manor.

Chris - who does what and when is a matter only the conveyancers can resolve and it can be tricky, especially if you are buying with a mortgage as your lender may insist on the possessory title being upgraded before completion.
The linked guidance explains what can be applied for and when
As to the protective entry that's precisely the point as you can't but to provide a guaranteed title we have to make such an entry. Your conveyancer can advise on the need for an indemnity policy for example as an option to protect you against anyone coming forward claiming such covenants etc exist in their favour.

Good morning.

I am a retired solicitor and am helping my sister and brother-in-law to upgrade their possessory title to a small piece of land to the side of their house from possessory to absolute.

I acted on the purchase and at that time obtained a possessory title in their name which was registered almost 12 years ago. Now is the time to consider upgrading it when the 12 years elapses.

I have three questions, please:-
1. Does an application cover (AP1?) need to be submitted as well as form UT1?
2. What fee is payable
3. Can I sign UT1 as the Applicants conveyancer - even though I am retired.

Thank you.

Christopher Boyce

Good Morning - no form AP1 and £40 fee. You can apply and sign but you wouldn't do so as their conveyancer. 

Where title to an estate in land is a possessory one, whether freehold or leasehold, you can apply to upgrade the title to an absolute freehold or leasehold after the possessory title has been registered for 12 years using form UT1.

Further guidance on how to apply to upgrade a class of title can be found in the following practice guide - Practice guide 42: upgrading the class of title.

The fee for this type of application is £40. Fees can be paid by cheque or postal order made payable to HM Land Registry.

We are unable to accept applications via email.

Please send your application to:

HM Land Registry Citizen Centre
PO Box 74
Gloucester
GL14 9BB

Thank you for your help and alacrity.

Christopher Boyce

Hi,

I'm in the process of buying a house that has both Freehold title (Absolute title) and Leasehold title (classified as Possessory Title), both under the seller's name. I'm curious to know if this arrangement is common and what potential implications it might have in the future. Specifically, I'm concerned about any effects on reselling the house, remortgaging, or any other related matters.
can these two title be merged together before or after buying house
How possessory leasehold title be converted into good or absolute title
Leasehold was first registered in 1956 but recently registered by current owner.
Any insights or experiences you can share would be greatly appreciated.

Kind regards,
 

Hi Ashfaque - very much Qs for your conveyancer to answer with regards the affect it might have now and in the future. 
Possessory titles can be upgraded, often after a period of time 
Our Practice Guide explains more re determination of a lease on merger
You won;t get others on this forum sharing their experiences re similar issues. Such a scenario is fairly rare but it's even rarer for this forum to operate like others where the public also chip in with commentary.
Please do discuss with your conveyancer and heed their legal advice