Need to avoid the dreaded covenants

Greatgimp

We bought this house from new, several years ago. When we went to the solicitor to sign the contract, she went through the covenants. They were rather restrictive to say the least but thought it in our best interest to continue the purchase (sold our house for a real good price to buy this one).

We've now sold this one and are going in to rented.

Is there any way we can see the covenants on prospective houses before getting involved with legal fees, searches etc etc. Has the average householder got their covenants to see? Would they think it extreme of us to ask? Would you as a seller be willing and able to show us your covenants if asked?

Your opinions are invited, even if you think it's a nutcase idea.

paul97_2

You can go on the land registry and get details for any property, I did that on the one we are buying. It costs £4 for title deeds, but if you want a copy of the restrictive covenants you can't do that on line and need to download a form and pay £12.00.

Greatgimp

So we could see a copy of the covenants for £12 a time? Is this instant or would we expect a response within a few days or so by snailmail?

mrschaucer

If I'd accepted someone's offer to buy our house, I don't think I'd have problems in letting them see the restrictive covenants - they're on paperwork sent through by our solicitor (office copies) when we bought, which we have on file. Maybe if they were VERY restrictive I wouldn't be so obliging, though ... Does anyone know if there are any legal problems in doing this?

Greatgimp

mrschaucer wrote: »

Maybe if they were VERY restrictive I wouldn't be so obliging, though ... Does anyone know if there are any legal problems in doing this?

This is where we were. We couldn't book removals, buy a house, make any plans at all as we thought that the buyers may pull out at the last second upon seeing the covenants.

Read this for a VERY similar example to our situation.

Cookie1988

Greatgimp wrote: »

So we could see a copy of the covenants for £12 a time? Is this instant or would we expect a response within a few days or so by snailmail?

It all differs per house. For instance their may be a covenant on the title saying ' a restrictive covenant blah blah in the Transfer dated 12/4/2000.

Which means you would need to order the Transfer of 12/4/2000 to see it. Most restrictions and covenants are on the title but older homes tend to have covenants and restrictions on old transfers.

You can get most documents instantly on the land registry via pdf document however if the file is too large (if it has an a3 plan attached) or some other reason then you will have to get it via snail mail.

Richard_Webster

This is where we were. We couldn't book removals, buy a house, make any plans at all as we thought that the buyers may pull out at the last second upon seeing the covenants.

Read this for a VERY similar example to our situation.

So was yours a case where there actually was a difficult neighbour?

It can happen, of course, but a lot of the time covenants are imposed by builders to protect their interests. They don't like it when having fought the Council for ages to get the maximum number of houses on a piece of land someone goes and gets a planning permission to build an extra house in a garden that they would have liked to have built. In that case they often want a proportion of the profit. On the other hand if you put up a small single storey extension it doesn't really increase the value of the land and they don't case much and will often give a consent for an admin fee of £100 or so.

In a lot of cases people forget their solicitor told them about the covenants and having built an extension without consent they have to pay for an indemnity policy when they sell which typically will cost £100-£200.

This thread suggests it is a great disaster that there are covenants - for most people most of the time it is no big deal.

Greatgimp

Richard_Webster wrote: »

So was yours a case where there actually was a difficult neighbour?

Next door built 3 houses and lived in one of them, and placed Deed of Covenant on the other two. We had to ask permission to sell, in effect. Normally the buyer would pay for this, but we were happy to stump up the £150 + VAT legal work so the buyers never got concerned.

Greatgimp

These covenants are placed so that even if the builder (next door) sells, the new owner takes over the covenants (mainly, not to transfer the Property or any part of it without procuring that the transferee delivers a Deed of Covenant to the person so entitled). We would need their (through their solicitor) permission to build a conservatory, extension, large garden shed etc at our expense, naturally. What if the price for permission goes sky high?

Eric1

Greatgimp wrote: »

..When we went to the solicitor to sign the contract, she went through the covenants. .

Why so late? I'd expect to see the title deed and covenants well before the exchange day.

Geenie

paul97 wrote: »

You can go on the land registry and get details for any property, I did that on the one we are buying. It costs £4 for title deeds, but if you want a copy of the restrictive covenants you can't do that on line and need to download a form and pay £12.00.

Are all properties on the Land Registry? I was under the impression not.

I believe it is only those sold since about 2000 when the new rules came in, and others who have taken up the scheme to protect their boundaries etc. I would imagine there are still a lot of properties that are not on it, so going through a solicitor may be the only option to see what covenants are involved unfortunately.