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  • FIRST POST
    • marlex
    • By marlex 19th May 17, 3:54 PM
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    marlex
    Restrictions/ Deed of Covenant on Property
    • #1
    • 19th May 17, 3:54 PM
    Restrictions/ Deed of Covenant on Property 19th May 17 at 3:54 PM
    Hi All
    Me and my girlfriend are finally in the process of buying our first property, yay happy days .

    The house is owned by the seller (not shared ownership), however we have recently found out that there is a deed of covenant on the property and maybe some restrictions - for which we're waiting on our solicitor to let us know more. The covenant is with Orbit and at the moment the only thing that we were told is, that in the future if we decide to sell the property we would need to offer it first back to orbit before we can sell it on the open market. We have already asked our solicitor if this condition/covenant could be removed but the answer is no due to how this property was set up.

    I just can't get my head around it why we have to continue with this covenant if we'll be the new owners of the property and the previous agreements are between the current seller and orbit.

    My questions is, can this have an effect on the value of the property in the future? Did anyone had experience with this or could give us some insight/advice on if this is a good purchase or we should pull out of the deal?

    Thanks for any help
Page 1
    • Chanes
    • By Chanes 19th May 17, 4:00 PM
    • 825 Posts
    • 504 Thanks
    Chanes
    • #2
    • 19th May 17, 4:00 PM
    • #2
    • 19th May 17, 4:00 PM
    If the price they were prepared to pay was the market value I cannot see how having to offer them first refusal is a problem? Am I missing something?
    • getmore4less
    • By getmore4less 19th May 17, 4:26 PM
    • 28,467 Posts
    • 17,019 Thanks
    getmore4less
    • #3
    • 19th May 17, 4:26 PM
    • #3
    • 19th May 17, 4:26 PM
    The problem is who decides market value when you can't put it on the market.

    Talk to the seller about there experience they must have just gone through it.
    • Chanes
    • By Chanes 19th May 17, 4:29 PM
    • 825 Posts
    • 504 Thanks
    Chanes
    • #4
    • 19th May 17, 4:29 PM
    • #4
    • 19th May 17, 4:29 PM
    The problem is who decides market value when you can't put it on the market.
    Originally posted by getmore4less
    Er...oh, never mind.
    • Hoploz
    • By Hoploz 19th May 17, 4:31 PM
    • 3,531 Posts
    • 3,114 Thanks
    Hoploz
    • #5
    • 19th May 17, 4:31 PM
    • #5
    • 19th May 17, 4:31 PM
    Are the current sellers aware of this?
    If so then it sounds as if Orbit (whoever they are) aren't interested.
    I would assume you'd offer them a period of exclusivity to see whether they want to buy/can find a buyer before you can take it to the open market.
    I would also assume an independent chartered surveyor would be employed to give a valuation.
    But I'm only assuming these things ... You need to ask the seller for more details.
    • Rodders3000
    • By Rodders3000 22nd May 17, 11:13 AM
    • 1 Posts
    • 0 Thanks
    Rodders3000
    • #6
    • 22nd May 17, 11:13 AM
    Restrictions
    • #6
    • 22nd May 17, 11:13 AM
    Hi,

    My experience of this is that the restrictions are there to protect (if there any) existing customers who are renting or on part ownership schemes from ensuring you don't turn the house into a commercial property which could effect their clients.

    I have been in a similar situation and it didn't effect me at all during resale.

    There are always loop holes and other ways to get around these problems.
    Last edited by Rodders3000; 22-05-2017 at 12:53 PM.
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