Actually owns the lane?
If it’s owned by a third party, is there an existing right-of-way?
Please say if it’s documented.
If it isn’t documented, how long has it been used for?
The problem here is that if you own both houses and the land, you cannot create an easement/right-of-way over land you own!
It’s not an issue for the land registry, it’s an issue for the bank . It’s not possible to land like a piece of land which is being used for residential purposes if the properties were eventually separated but there was a falling out, it would need a court application. That’s what the bank don’t want particularly if they repossess the property.
If there is an existing right-of-way, and the land with the benefit and the land with the burden come into common ownership, then the right-of-way/easement is extinguished.
This is the problem which the bank are raising.
One common solution would be for the properties to be owned by a limited company and for you to offer personal guarantees. You think that would raise credit issues.
Another solution would be for one property to be owned by two of you and the other property to only be owned by one of you but with the deed of trust in respect of the non-owner share.
About the only other way of doing this would be for the bank to make it a mortgage condition that either property were ever sold, there is a right-of-way entered into as part of the sale agreement. It could be documented on the land registry deeds as a restriction whereby you wouldn’t be able to sell the property unless that restriction had been complied with to the satisfaction of the bank.
To cut a long story short, this can be done but whether the bank will be happy with the situation remains to be seen. It’s perfectly legal and perfectly practical to do so but sometimes, with the bank, you are dealing with someone who is not familiar with the nuances of land law.
Can I clarify any points arising from this?
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Yes the bank could do that but they would just want a clean sale, they would not want the trouble.