Navigating Land Registry Delays in Property Transactions

Recent reports have shed light on significant Land Registry delays, creating challenges for both homeowners and prospective buyers. These delays, exacerbated by a surge in property transactions during the Covid-19 pandemic, are causing widespread frustration.

For new-build properties, title registration processing times can now extend up to two years. Even simpler updates, such as lease extensions or name changes, are averaging four months. These delays have substantial implications, particularly for homeowners looking to remortgage or sell their property.

One striking example comes from Laura Taylor, a homeowner in East London. She faced a potential £1,350 monthly mortgage increase due to an eight-month delay in updating her extended lease. Without this critical update, her remortgage application was undervalued, nearly doubling her expected payments. Although her solicitor managed to expedite the application, the experience underscores the financial risks and emotional strain these delays can impose. ‘I faced a £1,350-a-month mortgage hike because of Land Registry delays’.

The backlog at the Land Registry has also resulted in increased legal fees and greater uncertainty for property transactions. Despite efforts to digitise services and the introduction of higher fees for title searches, the organisation continues to grapple with understaffing and underfunding, leaving many homeowners in limbo.

When buying property, it’s essential to be aware of these potential delays and factor them into your plans—especially if you’re considering selling the property on quickly or refinancing it. Proper planning and consultation with your solicitor can help mitigate the risks, ensuring a smoother transaction process.

The land registry publish processing times on their website which can be found at the following link:

https://www.gov.uk/guidance/hm-land-registry-processing-times

By understanding and preparing for these property backlog issues, homeowners and buyers can better navigate the complexities of delayed transactions in today’s market.  It is extremely important to let your solicitor know that you may need your application processing sooner.