If the Land Registry plan shows the land belongs to your plot, but the neighbour has built a driveway over it, that’s a potential boundary dispute.
You need clarification before exchange otherwise you inherit the problem. Your solicitor absolutely should be raising this with the seller’s solicitor. The seller must explain what’s happened, whether the neighbour has any rights, and whether there’s been any dispute. An they need to foot the bill for correcting the land registry is necessary.
This is standard conveyancing. If your solicitor won’t push it, insist they raise a formal enquiry. You do not want to complete and then discover you’ve bought a boundary fight. If you don't settle this now and sometime in the future you try to sell, you could be left with the bill to resolve it and it may not be cheap and my erode the value of the plot.
The major issue here is that (assuming you have a mortgage) the mortgage company offer is based on the legal title, not the “real‑world” land on the selling photos. A mortgage valuation is carried out on the plot as shown on the Land Registry title plan. If the neighbour has taken a strip of that land and a strip for a drive sounds like a substantial size, the buyer is not actually getting what the lender thinks they’re lending against, the lender is not getting the security they believe they have and the valuer may have valued a larger plot than the buyer will physically own. The lender could refuse to release funds if the discrepancy is discovered before completion
Lenders are extremely twitchy about anything that affects:
- Boundaries
- Access
- Encroachments
- Rights of way
- Adverse possession
Because all of these affect resale value, which is their security. And the neighbour, having gone to the expense of building a drive, has spent a lot of money and is unlikely to give it up without a fight. That fight needs to be the current owners and not yours as it will be very costly.
And this becomes a viscous circle because if you do not address it now, then when you come to sell it on, the buyers may raise it and your home could be devalued.
The only caveat here is if the neighbours have recently purchased the land from the seller of the house you are buying and it has not yet hit the land registry but in this case the vendors solicitor should have declared this for the reasons stated above - so I doubt this has happened and I think its a boundary dispute.