Purchasing property with Title issues

I am considering a property purchase at the moment. The property is an old warehouse in a city suburb which was originally part of a long established industrial yard. The intention would be to demolish the existing building which is in a state of serious disrepair and construct a new build, residential property. There is significant road frontage to a quiet but adequate road so access is not likely to be an issue. The original owner had gotten planning permission for a large development of which this warehouse formed part but has subsequently lost control of the property and planning has lapsed. Area is zoned residential.

All good but here is the issue.

Since this warehouse formed part of a larger property owned for a long time by the original owners and is now being sold off as a separate entity there are significant title issues and is being sold as such.

Statement from vendor's solicitor

The Title is not clean. There are numerous issues in relation to First Registration, Planning, Identity, an outstanding Leasehold Interest and numerous special condition in the contract.

Our client will only consider a sale of “warts and all” or nothing at present – to the degree that raising pre contract queries is borderline irrelevant. The sale will not be considered subject to any conditions or warranties to assist the purchaser. If a sale is agreed it will also be on the condition that contracts are signed and returned within a strict 14 days with a closing 7 days after signing - no delays will be considered

Also, although vacant, the previous owners have a long term lease over the property with approximately twenty years remaining. There is also a boundary dispute.

In truth I have never been involved in a property purchase with so many issues but if I thought the sale could be completed without exorbitant additional expense I would make an offer. No funding is required on my part for the purchase and there is no urgency in developing the site.

Would appreciate feedback on the following.

Likely issues in completing this sale if my offer was to be accepted
Likely costs involved in completing this purchase, thousands, tens of thousands???
General advice and recommendations

Thanking you in advance...

It would be an act of insanity to buy this property.

If you came into my office having bought it, and asked me to "sort it out" , I would ask you to leave.

The best people to deal with the "numerous" title issues are the vendors. Usually, you would expect if a vendor wanted to sell a property, that there would be some positive "spin" on the issues, offers of assistance, possible suggestions as to how matters might be addressed, etc.,etc. The fact that none of that is on offer speaks volumes.

mf

Is there any research you can do external to the vendor, for example, contacting the Local Authority to see if there are any planning issues and what they are?

Personally though, I wouldn't touch this with a barge-pole.

mf1 said:

It would be an act of insanity to buy this property.

If you came into my office having bought it, and asked me to "sort it out" , I would ask you to leave.

The best people to deal with the "numerous" title issues are the vendors. Usually, you would expect if a vendor wanted to sell a property, that there would be some positive "spin" on the issues, offers of assistance, possible suggestions as to how matters might be addressed, etc.,etc. The fact that none of that is on offer speaks volumes.

mf

Click to expand...

Thanks for your reply MF .

The previous owner who I now have contact details for is no longer trading on the premises but has a lease on the warehouse, the property is vacant and the sale is being instigated by a financial institute. If I were crazy enough to pursue this purchase I am guessing that the most critical task for me to successfully complete the purchase would be to get the current leaser to relinquish their lease. I assume the title 'numerous' title issues could be resolved, although at considerable cost.

thedaddyman said:

Is there any research you can do external to the vendor, for example, contacting the Local Authority to see if there are any planning issues and what they are?

Personally though, I wouldn't touch this with a barge-pole.

Click to expand...

Thanks for your reply 'thedaddyman'

I have been making enquiries both local and planning office.

The previous/current owner had a very positive planning decision granted on the property but they were unlucky with timing. The decision however related to a much bigger site which included this warehouse. As they owned the entire site and had the lease on this property they would not have had these issues.

DrCavanMan said:

. If I were crazy enough to pursue this purchase

I am guessing that the most critical task for me ....

. I assume the title 'numerous' title issues could be resolved, although at considerable cost.

Click to expand...

Two things:

a) Can you afford to lose the money on this, if yes fire ahead
b) Surely to goodness you've hired a solicitor already and could you tell us his advice?

Bronte said:

Two things:

a) Can you afford to lose the money on this, if yes fire ahead
b) Surely to goodness you've hired a solicitor already and could you tell us his advice?

Click to expand...

+ 1 Bronte and succinct.