Jump to content
House Price Crash Forum
Sign in to follow this  
gruffydd

Newish House But Nobody Knows Who Owns Land.

Recommended Posts

I have been looking at houses on the market and keep stumbling across houses that are worthless...

(1) A few weeks ago... built on family land... mortgage holder didn't own the access... so essentially a worthless house that can't be resold by the bank.

(2) Yesterday... built on family land (they think) - land not owned by mortgage holders... so again, essentially a worthless house that can't be resold by the bank.

Surely the banks check to see whether the houses they lend on own the land they're built on / the access? Surely that's due diligence, or seemingly not?

How often has this been repeated?

I mentioned my shock to a local shop owner the other day - he pointed across the road and told me a bloke had just bought that house and then found he didn't own the driveway (after purchase) - and was trying to sell - no doubt mortgage money gone wrong, again.

So perhaps rather more common than we imagine - perhaps the banks took a big hit because of this - a bigger hit than we might imagine?

Edited by gruffydd

Share this post


Link to post
Share on other sites

I have been looking at houses on the market and keep stumbling across houses that are worthless...

(1) A few weeks ago... built on family land... mortgage holder didn't own the access... so essentially a worthless house that can't be resold by the bank.

(2) Yesterday... built on family land (they think) - land not owned by mortgage holders... so again, essentially a worthless house that can't be resold by the bank.

Surely the banks check to see whether the houses they lend on own the land they're built on / the access? Surely that's due diligence, or seemingly not?

How often has this been repeated?

I mentioned my shock to a local shop owner the other day - he pointed across the road and told me a bloke had just bought that house and then found he didn't own the driveway (after purchase) - and was trying to sell - no doubt mortgage money gone wrong, again.

So perhaps rather more common than we imagine - perhaps the banks took a big hit because of this - a bigger hit than we might imagine?

I know a few similar cases in NI. Obviously missed during the height of the boom when "checks" weren't so thorough.

Remember during a conveyance your solicitor works for you and represents the lender. Chances are the bank sued the solicitor when they discovered the error.

Several examples of this in NI. A group of solicitors set up in Belfast in 2010 with the intention of suing other solicitors.

Share this post


Link to post
Share on other sites

In my experience uncertain or unknown ownership of land is common in Ireland and Scotland. They seem quite happy with a situation that is accepted as not out of the ordinary, and register their interest under a variation of 'squatters rights'.

Share this post


Link to post
Share on other sites

In my experience uncertain or unknown ownership of land is common in Ireland and Scotland. They seem quite happy with a situation that is accepted as not out of the ordinary, and register their interest under a variation of 'squatters rights'.

In both cases they've known the landowners - it really is very curious indeed. Interesting about "squatters rights" approach! I wonder if they have similar here in Wales... the legacy of Ty Unnos stuff...

Share this post


Link to post
Share on other sites

You are confusing the issues here, it matters not whether the borrower owns the land over which he requires access, what matters is that they have a right of way (easement) over it. This is what the lenders pay their solicitors to check.

And yes you are right, without a right of way, the house is pretty much worthless unless it can be shown that an easement exists by virtue of acquisition by prescription.

Share this post


Link to post
Share on other sites

You are confusing the issues here, it matters not whether the borrower owns the land over which he requires access, what matters is that they have a right of way (easement) over it. This is what the lenders pay their solicitors to check.

And yes you are right, without a right of way, the house is pretty much worthless unless it can be shown that an easement exists by virtue of acquisition by prescription.

Yes they didn't own the easements (any! Not even for services!) on the first - they had also build across someone else's access road by accident - nor did they own the land that the property was built on (so that would include access too as no easements found) or any easements for the second. So something went wrong re: lender checking. I would assume both mortgages were to the tune of £300,000 plus.

Edited by gruffydd

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   33 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.