Cannot get mortgage with credit union until land transfer complete with land registry

[RD_Galway]

My husbands parents are transferring a site to us but the credit union say they cannot give us a mortgage on it until the process is fully complete with the land registry. I was in the land registry office recently and they said it can take up to 2 years for this. Apparently it is possible to speed it up by sending a solicitor letter to expediate it but they couldn't give any idea at all of how much it would speed it up.

From what I understand this is not the case with banks.

 

[ClubMan]

From what I understand this is not the case with banks.

Are you sure about this? I can't imagine that any lender would advance a loan secured on land/property until that land/property is formally registered in the borrower's name? Otherwise, what security do they have? When it comes to conveyancing of a house for example, the solicitor deals with this so that the transfer of ownership happens so that the mortgage loan can be drawn down. I would've expected something similar to be part of the process with land?

 

[Brendan Burgess]

I am not a lawyer, but this doesn't sound right.

People buy houses every day and it takes a long time to register them in the Land Registry. The solicitor on behalf of the buyer gives the lender an undertaking that they will register the title. Once the sale has been closed, it's just a matter of paperwork.

I suspect that is what is happening in your case is that the parents have said that they will transfer the land to you which means nothing.

But once the parents and your husband sign the papers to transfer the land, then the bank would be happy and so should the credit union.

Having said that, Credit Unions have done so few mortgages that they might not know what they are doing.

Your solicitor should be able to put them right.

Brendan