Non-Adopted Roads

DottyThistle

Just over a year ago, I moved in to a new house on a new development. I've recently found out that the main road this development sits on has not been adopted by the council. The developers were supposed to do this but didn't and have now gone in to receivership.

The council is saying "nothing to do with us, you and all the other residents should try and buy the road off the administrators and pay what ever costs need ot be paid and submit the correct documentation to the council for adoption". This could cost tens of thousands of pounds.

The administrators are saying "we have no money so won't be getting the road adopted".

Nobody's solicitor pointed out what an unadopted road meant and advised us on what action to take.

We've been told that it will be very difficult if not impossible to sell a house that is on an unadopted road. One house has already had their buyer pull out on the advice of their solicitor.

Does anybody have experience of this nightmare and can you give any advice that won't involve me having to take out another mortgage.

Many thanks in advance
Dotty

RLH33

Technically when the original planning permission was given by the Local Council it would have been accompanied by a S106 agreement giving an undertaking that the developer's would bring the road up to an adoptable standard. Once this was done then the Council would adopt the road and bring it under their maintenance etc. Part of the agreement usually includes a sum of money from the Developers to the Council to maintain the road for a number of years after adoption.

Is the road not up to an adoptable standard? i.e. is it half finished? Was the road ever intended to be adopted by the Council? It would be worth asking the Council if the road was part of a S106 agreement and whether the developer has paid their 'maintenance' money to the Council yet. If it has then you could argue that the Council can use this money to bring the road up to an adoptable standard and then try to persuade them, through your MP if necessary, to then adopt it and maintain it themselves.

If the road was never to be adopted then you effectively have a private road situation where the Council is not going to maintain it and you and your neighbours will have to do it instead.

I don't envy you this situation as I am sure it is a nightmare but unfortunately it is probably one that will be seen a lot more in the current climate.

Premier_2

Contact your solicitor and find out why they didn't explain to you that the road was un-adopted.

What makes you suppose the road was ever to be adopted?

If the intention was there to adopt the road, your solicitor should have verified that an indemnity or bond was in place to ensure the road was adopted.

If there was never any formal agreement in place to adopt the road at some time in the future, then your solicitor should have alerted you to this.

What has your solicitor got to say about it all?

russ21282

i would have thought the council tax would have covered it. Can you get it cheaper if they don't maintain it?

Premier_2

russ21282 wrote: »

i would have thought the council tax would have covered it. Can you get it cheaper if they don't maintain it?

No and no.

zarazara

we've lived in 3 properties with unadopted roads. not a problem to maintain if you have a tractor trailer and access to stones/scalpings. No problems selling either. but they were detached farm type properties, I can see it would be a nucience if its in the middle of a housing estate. the pot holes and mud would help deter boy racers though. look on the bright side :-)

poppysarah

zarazara wrote: »

the pot holes and mud would help deter boy racers though. look on the bright side :-)

We took the bottom of the car off nearly (had to call AA out) driving to see someone who lived on an unadopted road.

zcacmxi

There are 2 options when you build a new road:

1) Maintain it yourself.
2) Follow the procedure to get the council to "adopt" it and take on the responsibility for ongoing maintenance.

In the area in which I live, there are many unadopted roads. This does not cause any problems for the house holders. The residents association usually collects money from all the residents and gets the road maintained.

In this case, if the developer has built the road to the required standard, then it may be formality to get it adopted. The householders should get together an association, and get negotiating with the council and administrator!

DottyThistle

Thank you all for your advice,

The developers did submit section 38 to have the road adopted. These were sent back by the council telling them what they had to do to bring the road up to a suitable standard, and how much of a bond they needed to pay. The developers never responded to this and despite many visits from the council telling them the road was not to standard, they did nothing about it.

There is an S106 agreement, but I don't know if it covers the road. I will ask.

We don't have a housing association, but I have contacted my local MP who is reluctant to get involved, but he may help us set up an association. It will be a start.

The solicitor has said there is a paragraph in the searches to say that the road has not been adopted. (The searches were done before the road and houses where built!!!) She said it's not up to them to tell us what an unadopted road actually means. As far as she is concerned, she put it in a paragraph somewhere and that's her job done.

It will cost many thousands to get the road upt to standard and have it adopted, and at the moment nodbody wants to pay for it.

Catti

Dotty,

With all due respect to your solicitor, if I had made a mistake like this I would be mortified! I suspect your Mortgage offer required her to ensure that the road agreement was in place and she has undoubtedly been in error in not advising you about this.

Where a bond is not available on a new build, it is common practice for all buyers to retain a sum of money from the purchase price so that there is a fund available to help out in situations such as that. She should at least have protected you to that extent, if not by advising you to avoid it altogether.

If your house cannot sell because of this problem, then the mortgage company stand to lose money as well. This is why the Solicitor normally acts for the Lender as well as the buyer - and has a duty to both parties to make sure that the title to the property and any other matters will not adversely affect either party in the future.

Catti

For reference and so you can quote this to your Solicitor, the Council for Mortgage Lenders have the following requirement when it comes to roads and new builds:

6.7 Roads and Sewers

6.7.1 If the roads or sewers immediately serving the property are not adopted or maintained at public expense, there must be an agreement and bond in existence or you must report to us (see part 2 for who you should report to).

6.7.2 If there is any such agreement, it should be secured by bond or deposit as required by the appropriate authority to cover the cost of making up the roads and sewers to adoptable standards, maintaining them thereafter and procuring adoption.

6.7.3 If there is an arrangement between the developer and the lender whereby the lender will not require a retention, you must obtain confirmation from the developer that the arrangement is still in force.

6.7.4 Where roads and sewers are not adopted or to be adopted but are maintained by local residents or a management company this is acceptable providing that in your reasonable opinion appropriate arrangements for maintenance repairs and costs are in place.

So you need to ask her if she reported the absence of the s38 to your lender!