Solicitor Found a Title Issue: Will It Kill Your Mortgage?

Your solicitor has been doing their job — investigating the property title — and they've found something. Maybe it's a missing document, a restrictive covenant, or an unauthorised extension. Your heart sinks. Will the lender pull the mortgage? Is the purchase dead?

Usually, no. Most title issues are solvable. But some are serious, and understanding the difference matters.

What Is a Title Issue?

The "title" is the legal ownership record of a property, held at the Land Registry. Your solicitor reviews this record (and supporting documents) to make sure:

• The seller actually owns the property
• There are no unexpected restrictions on the property
• There are no third-party rights that could affect your use of it
• Everything is properly registered and documented
• The property can be mortgaged

A "title issue" or "title defect" is anything in the legal record that raises a concern.

Common Title Issues (and Whether They'll Kill Your Mortgage)

Missing Building Regulations Sign-Off

How common: Very common How serious: Usually manageable

If an extension, loft conversion, or other building work was done without obtaining a building regulations completion certificate, this is a defect. The work may not comply with building standards, which is a risk for the lender.

Solution: An indemnity insurance policy can usually be obtained. This is cheap (often £50-200) and protects the lender and buyer if the local authority later takes enforcement action. Most lenders accept this.

Important: If you contact the local authority about the work before getting indemnity insurance, you may invalidate the insurance option. Your solicitor will advise you not to make enquiries with the council.

Missing Planning Permission

How common: Common How serious: Depends on the age and nature of the work

If work was done without planning permission, the local authority can issue an enforcement notice requiring it to be undone. However:

• After 4 years: Enforcement for operational development (extensions, etc.) becomes time-barred
• After 10 years: Enforcement for change of use becomes time-barred

If the time limit has passed, a Certificate of Lawfulness can be applied for, or indemnity insurance can be obtained.

If the work is recent: This is more serious. The lender may require retrospective planning permission before completing.

Restrictive Covenants

How common: Very common How serious: Usually minor, occasionally problematic

Restrictive covenants are rules placed on the property by previous owners. Common examples:

• No commercial use of the property
• No further building without the original developer's consent
• No caravans, mobile homes, or sheds
• Maintenance of shared boundaries

When they're a problem: If the covenant is clearly being breached (e.g., there's a covenant against extensions and there's an obvious extension), the lender may be concerned that the covenant holder could take legal action.

Solution: Indemnity insurance usually covers the risk. The lender wants to know they won't face a claim, and insurance provides that protection.

Rights of Way and Easements

How common: Common, especially in rural areas and older properties How serious: Depends on the nature

A right of way means someone else has the legal right to cross the property. An easement might grant access for utilities, drainage, or other purposes.

• Minor easements (utility access, drainage): Usually not a problem for lenders
• Major rights of way (a public footpath through the garden): May concern some lenders
• Access issues (the only access to the property is across someone else's land): Can be a major issue if the right of access isn't properly documented

Missing Title Deeds

How common: Less common with registered land, but occurs with older properties How serious: Can be significant

If the property is unregistered or if some deeds are missing, establishing a clear chain of ownership is difficult. The seller may need to apply for first registration or provide statutory declarations.

Solution: Title insurance or a statutory declaration from the seller confirming their ownership. Most lenders will accept this, but it adds time.

Chancel Repair Liability

How common: Affects properties near certain churches How serious: Minor (but lenders require insurance)

In some areas, property owners can be liable to contribute to the repair of the local church chancel. This is an ancient liability that still exists in law.

Solution: Chancel repair liability insurance — cheap and standard. Nearly all lenders require it where the risk exists.

Boundary Disputes

How common: Not uncommon How serious: Can be deal-breaking

If the boundary of the property is unclear or disputed — for example, the title plan doesn't match the physical boundary, or there's an ongoing dispute with a neighbour — lenders may be unwilling to lend.

When it's manageable: A slight discrepancy between the title plan and the actual boundary (common with older properties) can usually be resolved with a statutory declaration.

When it's serious: An active boundary dispute with a neighbour is a red flag. Most lenders won't lend on a property with ongoing litigation or disputes.

Flying Freeholds

How common: Relatively rare How serious: Problematic for many lenders

A flying freehold occurs when part of a freehold property overhangs or underlies part of another property — for example, a room above a neighbour's passageway. The problem is that freehold law doesn't properly deal with these shared structures.

Solution: Some lenders accept flying freeholds with indemnity insurance, but many won't lend at all if the flying freehold represents more than a small percentage of the property. A specialist lender may be needed.

Japanese Knotweed

How common: More common than you'd think How serious: Depends on proximity and extent

If Japanese knotweed is identified on or near the property (within 7 metres), this affects the title through the TA6 property information form.

Lender response varies:

• Some lenders decline outright if knotweed is present
• Others require a specialist treatment plan and insurance-backed guarantee
• The RICS now uses a risk assessment approach based on proximity and extent

Absent or Unknown Freeholder

How common: Common with older leasehold properties How serious: Significant

If no one can identify or contact the freeholder, this creates problems:

• You can't extend the lease
• You can't buy the freehold
• Ground rent may become unmanageable
• Some lenders won't lend on properties with absent freeholders

Solution: It's possible to apply to the court for a "vesting order" to acquire the freehold, but this takes time and costs money.

Indemnity Insurance: The Standard Fix

Many title defects are resolved through indemnity insurance rather than by fixing the underlying problem. Indemnity insurance:

• Covers the financial risk of the title defect
• Is accepted by most lenders as sufficient protection
• Is usually cheap — £30-300 for most standard policies
• Lasts indefinitely — one-off premium, permanent cover
• Transfers to future buyers — so the property can be resold

However, indemnity insurance has limitations:

• It doesn't fix the problem — it just covers the financial risk
• It's invalidated if you take action that triggers the risk (e.g., contacting the council about missing building regulations)
• Not all defects are insurable — some are too serious or uncertain
• Not all lenders accept indemnity insurance for all defects

Who Pays for Resolving Title Issues?

This depends on the nature of the issue:

• Seller's responsibility: Issues caused by the seller or previous owners (missing building regs, unauthorised work, absent freeholder) are usually the seller's problem to resolve or pay for
• Buyer's cost: Searches, indemnity insurance for inherent title issues (chancel repair), and additional legal work are often the buyer's cost
• Negotiable: Many costs are negotiated between buyer and seller

Your solicitor will advise on who should bear specific costs.

When to Walk Away

Some title issues are serious enough to reconsider the purchase:

• Active litigation affecting the property
• Significant boundary disputes with no resolution in sight
• Structural title issues (like a flying freehold) that make the property hard to mortgage or resell
• Lease issues that fundamentally affect value (very short lease, unreasonable ground rent escalation)
• Issues the seller refuses to address — if they won't fix legitimate problems, that's a warning sign

Your solicitor is the best person to advise on whether a specific title issue is manageable or whether it should make you reconsider.

Real-World Title Issue Scenarios

Scenario 1: The Missing Building Regs That Nearly Collapsed the Deal

Property: 3-bed semi with a kitchen extension and loft conversion, £265,000

The solicitor discovered neither the extension nor the loft conversion had building regulations completion certificates. The buyer panicked. The mortgage lender (Halifax) said they required either the certificates or indemnity insurance.

The seller's solicitor obtained indemnity insurance for both: £120 for the extension (built 8 years ago) and £95 for the loft conversion (built 12 years ago). Halifax accepted the policies. Total delay: 2 weeks. Total cost (paid by the seller): £215.

Lesson: Missing building regs is incredibly common and almost always resolved with cheap indemnity insurance. Don't let it scare you.

Scenario 2: The Restrictive Covenant That Mattered

Property: Detached house with a large garden, £340,000

The title contained a restrictive covenant from the 1960s preventing "further development" on the plot. The buyer had plans to build a garden office. Their solicitor flagged the covenant as a potential problem if the garden office breached the covenant (it likely would, being a structure beyond the original house).

The buyer's options: (a) obtain indemnity insurance covering the risk of the covenant being enforced (approximately £150), (b) approach the covenant holder (the original developer's successor) for consent (time-consuming and uncertain), or (c) proceed without the garden office.

They chose indemnity insurance, noting that the covenant was over 60 years old and the original developer had long since dissolved. The lender (Nationwide) accepted the insurance. The buyer later built the garden office without any issues.

Lesson: Old restrictive covenants are common and rarely enforced, but they need to be addressed legally — usually with indemnity insurance.

Scenario 3: The Boundary Dispute That Killed a Purchase

Property: End-terrace with a driveway, £195,000

The title plan showed the driveway belonging to the seller's property. But the neighbour claimed the driveway was shared and had been using it for parking for 15 years. The neighbour threatened to file a claim for adverse possession.

The buyer's solicitor advised that this was a genuine dispute with uncertain outcome. The mortgage lender (Pepper Money) declined to lend until the boundary was legally resolved. The seller couldn't resolve the dispute quickly. The buyer withdrew.

Lesson: Active boundary disputes are one of the few title issues that can genuinely kill a purchase. If your solicitor identifies one, take it seriously.

Common Mistakes When Title Issues Are Found

Mistake 1: Panicking Before Understanding the Severity

Most title issues are routine and solvable. Before panicking, ask your solicitor: "On a scale of 1-10, how concerned should I be?" Their professional assessment is more reliable than your anxiety.

Mistake 2: Contacting the Local Authority About Missing Building Regs

If you (or the seller) contact the council about building work that lacks building regulations, you may trigger an inspection. This can void the option of indemnity insurance (which requires that no enquiries have been made to the council). Let your solicitor handle this — they know when to contact the council and when not to.

Mistake 3: Not Getting Quotes for Issues That Need Fixing

If the survey or title investigation reveals issues requiring repair (e.g., planning enforcement, structural repair, damp treatment), get quotes from tradespeople before negotiating with the seller. "Your property has damp" is a weaker negotiating position than "Your property has damp, and three contractors have quoted £3,500-£4,200 to fix it."

Mistake 4: Walking Away from a Good Property Over a Minor Issue

Some buyers walk away because the title investigation revealed "issues" — when those issues are a standard indemnity policy for chancel repair liability (£20) and a missing building regs certificate (£100 insurance). These are not reasons to abandon a property you love.

Questions to Ask Your Solicitor About Title Issues

1. "How serious is this issue, realistically?" — Get a plain-English assessment
2. "Will the lender accept indemnity insurance for this?" — If yes, the issue is usually manageable
3. "Is this something the seller should pay for?" — Missing building regs, for example, are the seller's problem to resolve
4. "How long will resolving this add to the timeline?" — Days, weeks, or months?
5. "Have you seen this type of issue before?" — Experienced solicitors handle most title issues routinely
6. "Should this issue affect my decision to buy?" — Your solicitor's honest opinion is valuable — they've seen hundreds of purchases

The Bottom Line

Title issues are a normal part of conveyancing. Most are solvable with indemnity insurance, additional documentation, or negotiation. A few are genuinely problematic and may affect your mortgage or your decision to buy.

Trust your solicitor's advice on severity, and don't let common, easily resolved issues derail a purchase you want.

This is educational content, not financial advice. Your situation is unique — speak to your solicitor and a qualified mortgage broker before making any decisions.