** Very Urgent**
I need some urgent help with the residential (29 Blackgate Road, SS3 9SP) property I am buying.
The property along with a plot next to it (same title- EX651165) was bought by the current seller (developer) in 2022. He developed a new detached house on the plot with planning permission (Please see the planning permission submitted to the Council and decision). The seller refurbished and put the old property on sale (29 Blackgate) but the title has not been split. I put an offer on the old property and applied for the 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 funds. The reason for this is 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 is that even if we apply for a split of the title, whether the new plan would be approved by the HM Land Registry. Because there are restrictive covenants on the original title register as:
"1. Not to construct or use or permit or suffer to be constructed or used any building or allow any trees or other obstruction, on the land hereby transferred or alter or extend or permit or suffer to be extended any existing building on the land hereby transferred in a manner which would obstruct the transmission to or from the Adjacent Property of microwave and other communication signals and not to obstruct or contaminate or permit or suffer to be obstructed or contaminated any air space comprised in the land hereby transferred so as to diminish or otherwise interfere with any such signals or communications 2. Not to interfere with, or impede access to, or build within 2 metres of, or in any manner transgree over or through any perimeter fence referred to in clause 8 (B) of this transfer and not to lay pipes and cables any closer than 1 metre from the said perimeter fence." NOTE: The Adjacent Property referred to is defined in the Property Register."
I am not sure how the local authority decided on the planning permission but I believe when the local authority approved the plan for the new detached house next to the house I am planning to buy, they considered the existing restrictions before approving the planning permission. Am I right?
Now my question is:
1) As the local authority approved the plan for the new detached house, will it be approved by the HM Landregistry as well? Or there is any chance that the HM Land Registry might refuse it?
2) What would be the best course of action in these circumstances?
I am concerned that if I exchange the contract (I will be legally binding) and then apply for the split title with the plans but for any reason the plan is not approved by the HM Land Registry, then the lender will not release the fund and I will be stuck in the contract.
Please see the attached documents and advise me accordingly.
