01
A bridge that accepts the defect
Specialist lenders will often lend where a mainstream lender will not, on a lower loan to value that reflects the issue, while the remedy is pursued.
Complex cases
“A title problem has appeared and my lender has withdrawn”
Title defects — a missing right of way, an absent freeholder, unregistered land, a restrictive covenant — are usually fixable, but the fix takes time that a mortgage offer does not allow. A bridge funds the purchase while the defect is resolved, then a mortgage refinances it.
An illustrative situation, not a client case study. It describes the kind of enquiry this market sees. Any figures are examples, not a quotation, and no credit check or lender decision is involved in reading this.
Sound familiar?
- Your solicitor has raised a title issue that the lender will not accept
- The mortgage offer has been withdrawn or made conditional
- The defect is capable of being remedied, but not quickly
- The seller will not wait for the process to conclude
The situation
Title problems are discovered at the worst possible moment: after the survey, after the offer, and usually shortly before an intended exchange. Common examples include access that is not formally granted, a covenant restricting use, land that was never registered, a missing building regulations certificate, or a freeholder nobody can find.
Most of these have established remedies — indemnity insurance, a deed of variation, a lost title reconstruction, an application to the Land Registry. What they do not have is speed.
Why the usual lenders say no
- Mortgage lenders lend against clean title and will not complete with an unresolved defect.
- Offers expire, and re-underwriting after an expiry is not guaranteed.
- Some lenders will not accept indemnity insurance where others would.
What usually works
02
Indemnity insurance where appropriate
For many defects this is the standard and inexpensive answer. Lender appetite for it varies, which is itself a reason to compare lenders rather than accept one decline.
03
Fixing it properly, then refinancing
Once the title is clean and registered, the property is mortgageable again and a term lender repays the bridge.
Roughly how the numbers look
| Loan to value | Usually reduced while the defect is outstanding |
| Term | Set against the realistic legal timetable |
| Cost of the remedy | Varies from modest indemnity premiums to substantial legal work |
| Exit | Mortgage once the title is clean and registered |
Ask your solicitor for a realistic timetable before setting the term. Land Registry applications in particular can take considerably longer than expected. These are examples to show the shape of a deal, not a quotation. Work out your own figures in the bridging calculator.
What we would need from you
- Your solicitor’s report on title and a description of the defect
- The proposed remedy and an estimated timescale
- Any indemnity insurance quotation obtained
- The withdrawn lender’s reason, in writing if available
- A valuation reflecting the property with and without the defect
- Your exit: a mortgage decision in principle conditional on the remedy
Things that catch people out
- Some defects cannot be insured, and a few cannot be remedied at all. Establish which category yours is first.
- Indemnity insurance is usually invalidated if you approach the beneficiary of the covenant. Take legal advice before contacting anyone.
- If the defect materially affects value, the loan will be sized against the lower figure.
Questions we get asked
Can I buy a property with a title defect?
Often yes, with specialist funding and usually at a lower loan to value while the issue is resolved. Whether it is wise depends entirely on the defect, which is a question for your solicitor rather than for us.
What is indemnity insurance?
A one-off policy that covers the financial loss if a title defect is ever enforced against you. It is a common and inexpensive remedy for many defects, though lender appetite for accepting it varies.
How long does it take to fix a title problem?
Anything from days for an indemnity policy to many months for a Land Registry application or a deed of variation with an uncooperative freeholder. Your solicitor should give you a realistic view before the bridging term is set.
The product that usually fits
See how it worksEvery case is different. A specialist will confirm what actually fits yours.
Keep reading
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Read the guideAll situations
Eighteen situations across bridging, development, commercial and buy-to-let.
Browse them allAmram Finance Ltd is a credit broker, not a lender. We do not lend our own money and we do not approve or issue loan offers.
Your property may be repossessed if you do not keep up repayments on a loan secured on it. Some forms of bridging finance and buy-to-let lending are not regulated by the Financial Conduct Authority.