can we come to agreement about boundary issue with bank

I

inout2

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ok so we found our dream house after about a year of searching..it was a house built 10 years ago by a couple that had split up.all was going ok until about 5 months into the sale when our solicitor mentioned that there was a little bit of the garage built onto the neighbours land-this also showed up when the engineer did his searches,anyway we thought it would be easily sorted but alas it was not so..the neighbour wouldn't respond back to any of the solicitors letters and basically would not comply at all.
my question is..as this is an ongoing issue..(it has been the cause of the house sale falling through previously also) is there anyway we can get the bank to agree to give us the mortgage and over look this issue
 
No

If your solicitor is worth his/her salt they will not allow sale to proceed without this being sorted.

  • You need to be protected as it will cause issues later
  • Bank needs to have its investment protected and
  • Solicitor needs to protect himself/herself by having all the legalities sorted

Can you approach the landowner directly?

If it isn't sorted you won't get money released from the bank.
 
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There is not a hope the bank will overlook this and give you a mortgage without this being sorted out because basically the house is unsaleable so they would have no proper security for the loan. The only person who can buy that is a cash buyer who is willing to ignore legal advice and the potential of future problems because of this issue.

Interestingly my parents owned a property and it turned out the neighbours house was built several feet into their land, old properties and none subject to a mortgage until my parents decided to do a lot of work that required planning and finance. My parents sorted it by just signing over the strip to the neighbour, it just regularised the position on the ground as such and didn't obviously disadvantage them at the time. However they came to bitterly regret their generosity as the neighbour became the most unbelievable thorn in their side once work started and there was a massive falling out that was never fixed.

You don't know what angle your future neighbour is coming from, who knows what happened over the 10 yrs since the house was built so I think calling to them and just finding out once and for all will let you know whether the situation can be fixed or not.
 
Good advice from Monbretia.

I purchased a house with a similar issue some years ago.

You can't buy the house unless the issue is resolved.

No one is going to resolve it except you.

First talk to the neighbour, there may well be a history. In my case the neighbour had a serious grudge against my vendor over the issue. Ask the neighbour how they see the situation could be resolved. Whatever they suggest go along with that, get an engineer to draw up plans detailing the agreement, get the solicitor to draw up a legally binging agreement to confirm the resolution. Then the bank may be willing to move.

You should get a serious discount for all this effort.

If the neighbour will not be some way reasonable, walk away.
 
Inout2 did you resolve this issue? We are in a very similar situation and would like to know if there is light at the end of the tunnel!
 
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