Counsel was instructed by a purchaser who contracted to buy a property pre‑auction and paid a deposit. The purchaser has a bridging loan offer that, with available funds, remains short of the contract price pending lender conditions. The title contains a long‑standing charge entry from the 1990s that the seller will not discharge. The purchaser’s conveyancer (AG) prepared a manuscript amendment to the TR1, an AP1 rectification for post‑completion filing and sought an indemnity policy to address the title risk. The seller served then withdrew a Notice to Complete and extended the deadline; the lender is withholding funds pending straightforward requisitions and title assurance. Counsel: SO.
Whether the historic title entry represents a live enforcement risk for lender and purchaser and how to satisfy the lender to enable completion. Whether a manuscript TR1 amendment and post‑completion AP1 will be accepted without the seller’s initials and the practical risk of the seller withholding completion or forfeiting the deposit. Whether indemnity insurance can be procured quickly and at reasonable cost to satisfy the lender.
Financing and exit risk: reliance on bridging finance and the need for planning/category confirmation (change of use) to secure long‑term lending.
Counsel advised that an historic, long‑unenforced entry is unlikely to be actively enforceable but will ordinarily need to be addressed for lender comfort; indemnity insurance is a routine, commercially accepted solution. Manuscript corrections to the TR1 with a post‑completion AP1 can regularise the register but lenders generally require documentary assurance before releasing funds.
Practical steps that were advised were to obtain and forward an immediate indemnity quotation to the lender and, if acceptable, bind cover and supply insurer confirmation; save an unaltered TR1, make the manuscript amendment using the exact Land Registry wording, initial the change and send both versions to seller and lender requesting initials or reason for refusal; prepare and include AP1 in the post‑completion pack; prioritise clearing lender requisitions and co‑ordinate architect/planning officer input to support lending.
Tactical posture was advised to avoid gratuitous time extension requests; instead demonstrate readiness to complete by producing lender confirmation, indemnity evidence and amended TR1/AP1; preserve all communications and evidence of steps taken.
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