deed of variation altered or pull out?

amigasara

Hello there,
I'm in the middle of buying a flat. My solicitor is requesting a deed of variation because of the inappropriate repairing covenants.
This message has been passed on to the vendor’s solicitors, so we have to wait for their response.
My solicitor is advising me to walk if this is not altered, but only mentioned so far that this will cause a delay of a few weeks. I was hoping that I wouldn’t have to pull out. I've read posts on this forum in which people pulled out because the deed of variation issue? I don't understand why it couldn't have been altered.

I’m hoping the vendor sees the need to get this done as otherwise – and in this market – he would struggle to sell the flat. Unless he hopes that the next buyer coming along might have a solicitor who wouldn’t spot this!

I don't think it's a case of my solicitor being fussy. Is it? I've also been told that my lender would want to see this done, otherwise they won't release the funds.

Any thoughts on this anyone? Has anyone been in the same situation with a good outcome?

thanks

Premier_2

I would take the advice of your solicitor - it's what you pay him for!

If the lender won't release the money without the necessary deed of variation, I don't think you'll have much choice about walking away unless you can secure funding from somewhere else.

amigasara

but walking away would be the last option. Surely this happens before and things get sorted - meaning deed altered - and the sale can go through???

mlz1413

Why would you want to buy a flat with 'inappropriate repairing convenants'??
Surely this means that the repairs to the flats in the block are not adequately provided for, so sooner or later major repairs will be needed and the flats will be worthless until they are done?

Your solicitor has brought to light a potential problem - be it serious or not you will find out as the solicitor does his job. Personally I would not be a hurry to buy this flat without knowing the full details.

amigasara

I just hope that this could be sorted by having the deed of variation done.
There are only 2 flats in the block.

That would be an option right, rather than walking away?

richingram

An alternative to a Deed of Variation is an indemnity policy which would cover the lack of repair on the property.

I take it that the property is a leasehold property and if it is then the vendors solicitor will have to contact the freeholder (and freeholder solicitor) about this issue which could take a bit of time as solicitor sends letters to solicitor and then finally agreement between all parties is reached on the deed.

I would sit tight and wait and see what the vendors solicitor says first.

Rich

richingram

If the vendor wishes to sell then he/she will have the deed in place but ultimately it is not up to the vendor

Out of interest how long have you been in the buying process for as most purchases can take a minimum of two months and might take a bit longer if you are in a chain.

The deed of variation would be put in place at time of completion and registered against the property with the LR so when you come to sell the property there will be no problems.

Rich

Premier_2

amigasara wrote: »

but walking away would be the last option. Surely this happens before and things get sorted - meaning deed altered - and the sale can go through???

Yes, of course

Your solicitor is only suggesting you walk away in the event a suitable deed of variation is not obtained. However, his request for one suggests he thinks it's possible for the vendor to obtain one. Best to wait to see what response comes back from the vendor first, before you decide the next step.

richingram

Sorry me again. Some mortgage lenders are happy to have an indemnity policy in place just as long as the value of the mortgage is covered, though a solicitor will advise that a deed is needed instead. Having the deed in place will cause you less stress when you come to sell the property.

rich

richingram

Premier wrote: »

Yes, of course

Your solicitor is only suggesting you walk away in the event a suitable deed of variation is not obtained. However, his request for one suggests he thinks it's possible for the vendor to obtain one.

It is possible for a deed of variation in place, the only issue is that would you as buyer be happy to accept liability for the structure of the building instead of the freeholder. Since there is one other flat in the block you may share liability for the roof with the flat above/below the one you are purchasing. It all depends on what is in the lease.

Can you get a copy of the lease and read through it?

Rich

Premier_2

richingram wrote: »

It is possible for a deed of variation in place, the only issue is that would you as buyer be happy to accept liability for the structure of the building instead of the freeholder. Since there is one other flat in the block you may share liability for the roof with the flat above/below the one you are purchasing. It all depends on what is in the lease.

Can you get a copy of the lease and read through it?

Rich

One would hope that the solicitor has requested a deed of variation that addresses the inappropriate repairing covenants originally highlighted rather than transfers the liabilty of all repairs from the freeholder to the leaseholder.