No permission to use shared septic tank -WWYD?

[Heje]

We're buying a property and nearing exchange. The sellers are putting a lot of pressure on us to exchange ASAP due to their onwards purchase.

The property shares a septic tank with its neighbour. It was part of a larger plot including a barn but about 20 years ago the barn was sold separately. Both properties use a septic tank in the garden of the barn conversion.

Conveyancing has revealed that at the time the properties were legally divided they forgot to grant rights for use of the septic tank to the property we're looking to purchase. It's been used by both properties without issue with shared cost all this time.

I know it's not likely but it seems legally possible that whoever the neighbours are could prevent us using the septic tank.

Ideally we'd want the sellers to agree to arrange for the neighbours to explicitly grant the right, but I think they won't want to delay. My solicitor mentioned an indemnity but even if it was watertight it wouldn't prevent a whole load of potential hassle.

Has anyone come across this before? WWYD if the seller refuses to try and legalise the permission?

We share a septic tank, and it's shared with next door. There is no written agreement in place, but we have a verbal agreement with the neighbours to share costs. The previous owner did likewise. Neither they nor we have had any issues whatsoever. If you are that concerned then you can pay for the indemnity policy yourself if the sellers refuse (I used to work in conveyancing). In any case how on earth could they stop you using the septic tank?

this isn’t your problem until you exchange. So get the vendors to sort it properly. Don’t be bullied into taking on the risk.

Thanks all. So many responses!

So I did a bit of research (I'm a lawyer, but not property) and it looks like there will be an equitable easement as the tank has been used for 20+ years. Not as good as a legal easement (ie on the deeds), which we've not asked for, but half way there in my view.

It looks like there needs to be an application to the land registry to register the easement. The neighbours can object, but not because they just don't like it, they would have to convince the land registry that the equitable easement doesn't exist.

The house is half way down a private road. The mains sewers are not close enough to connect to them.

But registering the equitable easement won't be quick, and if the application is unsuccessful again you'll likely make the issue uninsurable. The attempt at registration will tip off the barn conversion owners. So your Sellers are unlikely to agree to this or (if you're thinking of trying to do this post your purchase) you could make any future sale problematic.

Honestly, I wouldn't take this risk on my main asset. Insurance is the only "fix".

Thanks, food for thought.

If you go down the insurance route you need to make sure you're clear what's actually covered. Indemnity insurance generally only covers the cost of legal action not of actually rectifying material problems with the property.

So you might be able to take out insurance that covers your legal costs if the neighbours challenge the easement, but I'd be surprised if there's any insurance that would pay for a new septic tank in the event you lost the case.

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surprised by the answers. We share a septic tank with our neighbours, but we own it, it’s on our land. We split the cost by the amount of bedrooms we have. The neighbour has no legal right as such. I really cannot perceive a situation where we would say you can’t. I don’t even know how we’d do it. All the plumbing is under ground we’d have to get someone in to dig it up and disconnect it and spend some money on it. It’s really in no one’s interests.

well I tell a lie. If you were constantly using bleach and doing other stuff not compatible , refusing to pay your share of the bill, then I’d consider it. But if you behave yourself no one would do this.

I'd be surprised if there's any insurance that would pay for a new septic tank in the event you lost the case.

All our indemnities (we have three!) cover loss of value of our property, so in this case would presumably be sufficient to cover putting in their own septic tank.

I just did a random google (to make sure we don't have unique policies!) and all the ones I found for easements/unregistered land risks (my house's problems...!) include loss of value - example excerpt here:

"The policy covers trying to resolve the issue with the adjoining landowner subject to compliance with the claim requirements but if resolution is not possible the insured will be able to make a claim for losses, inclusive of loss of market value of their property if the absence of easement means the property suffers a loss event."

But yes, definitely read the small print!!

This is literally a shitshow. Run…

I wouldn’t touch it until resolved (even with your common sense approach) on the basis that you’ll have issues when you sell (even if you’re not planning that imminently).

It's a win win really you either get access or a insurance policy that covers putting it right. Searches are talking so long to come back I can understand why the sellers are getting annoyed at a minor issue holding it up if they have offered to pay for the indemnity

As pp have said don’t proceed until this is properly sorted out.
the agent needs to explain to them that they will have the same issue with any other buyer so they need to sit tight

Is there a record / paper trail of shared costs over years that the vendors can supply to support the equitable easement?

There is a financial advantage to the neighbours in maintaining shared use / shared cost.

What would be the status of an indemnity policy if the neighbours sold up or wanted to build in a way that prompted them to relocate or reduce the tank?

There are often complications and compromises with rural properties with shared access, ROW, services and covenants that are normal in different circumstances but horrifying on MN.

I really cannot perceive a situation where we would say you can’t. I don’t even know how we’d do it. All the plumbing is under ground we’d have to get someone in to dig it up and disconnect it and spend some money on it. It’s really in no one’s interests.

I can very well imagine a situation where the OP might fall out with her neighbour such that her neighbour decides to get arsey about the septic tank! OP objects to their planning application, OP parks her cars inconsiderately, OP makes a noise complaint about their dog, OP refuses to cut down her trees, OP lets her house out as an airbnb. There are thousands of neighbour disputes every day so if the OP had one, and the barn owner was aware of the easement issue, too right they would leverage it!!

The options are an imdemnity policy, knock the price down to cover new drainage, or walk away.

It's possible to install a sewage treatment plant for less than £15-20K, my neighbours did most of the work themselves - hired a digger etc, but had a firm supply and do the actual install. I believe the cost, last year, was somewhere below £6-7k

Do you have somewhere to put your own tank. Ie no paving or tarmac. 15k sounds a lot (previous poster). Get a quote and offer new buyer costs

There's definitely been shared costs (consideration for the easement) so it's worth asking for evidence of this.

We'd have a paddock below the garden with space for our own. Not sure if you can put a septic tank not within the domestic curtilage.

It's a water treatment plant (e.g. Klargester) you'd install these days, not a septic tank (I realise you are probably using septic tank as shorthand!). They need electricity so that is one consideration re. siting. Our quote has come in at the £15K mark to cover everything, including re-running all the drains to the new site (our septic tank is in our back garden, but they have told us our Klargester would be best in our front garden, to allow the clean water to discharge into an existing ditch).

You would be naive to walk into this situation. If there are problems with the septic tank the neighbours may blame you for allowing the wrong kind of waste to be discharged into it and they would be within their rights to stop you using it - then what would you do?

No wonder the people you're buying off are pressuring you to sell ....

I would walk away. Actually quite surprised that a property (house) without its own sewerage disposal (mains or septic) is even mortgageable. I believe this is the case if it was minus a working kitchen?
So many problems that could occur as pp have mentioned plus what if the neighbour refuses to pay their share for repairs/replacement/emptying or wants it’s done more frequently than yourself? Or is there an agreement both parties pay a set sum into an account annually specifically set up to cover sewage costs? If so who decides when the money can be spent?
I would say worth it to get it all sorted now, I would expect other potential buyers to be equally suspicious(?), so it would be in everyone’s interest going forward to get it sorted.
neighbours do change, as do their relationships with each other.

I was under the impression that by a couple of years ago all the existing I septic tanks should have been upgraded?
Which would mean there’s plenty of documentation as the shared ownership aspect would mean that all users would have chipped in to pay for the replacement?

Friends discovered (after buying their house) that the owners of the neighbouring land with the shared septic tank had actually blocked the pipes and refused to accept an easement. It cost them around 5-10K to DIY a treatment plant but then the neighbours refused to allow the clean water to be discharged into a ditch...

The neighbours have agreed to a legal easement, so they are working with the sellers to create a deed and update the land registry. No idea how long it'll take.