Buying a house where a builder has put non-amendment rights

Scooby_Man

A friend of mine is about to buy a house and noticed on the deeds that the builder who made an extention on a part of their home has put in some amendment rights which prohibit the owner to make any changes within 5 years! This sounds incredibly intrusive - what rights does this builder have? Can he come and 'check' if changes have been made to his work in THIER house?

Is this a trap to be weary of?

Debt_Free_Chick

This is common - but don't ask me why developers do it!

Your friend needs to check the wording carefully - it probably only relates to extensions. It doesn't usually affect the internal layout and/or the decor. It just means that they can't make changes that are likely to add to the structure and, therefore, the value of the property.

Scooby_Man

Debt_Free_Chick wrote:

This is common - but don't ask me why developers do it!

Your friend needs to check the wording carefully - it probably only relates to extensions. It doesn't usually affect the internal layout and/or the decor. It just means that they can't make changes that are likely to add to the structure and, therefore, the value of the property.

Blimey! why would it bother a builder whether the owners did something to their house to add to the value! actually, knowing my mate, he'd probably do something to reduce the value...i wonder if that'd be an issue! How would the builder know?

Debt_Free_Chick

Scooby_Man wrote:

Blimey! why would it bother a builder whether the owners did something to their house to add to the value!

I know, I know. To me it just seems a bit spiteful!

actually, knowing my mate, he'd probably do something to reduce the value

:rotfl: :rotfl:

...i wonder if that'd be an issue! How would the builder know?

The builder might never know. But if your friend did amend and increase the value, then the builder could possibly sue for a share of the increase! :eek:

Five years is not long to wait though

Richard_Webster

Developers do it:

a) to stop hideous extensions being built while they are still try to sell houses on the estate; and

b) to be able to charge a large sum of money if the proeprty owner sis obvioulsy making a profit out of the work, e.g an extension that effectively tunrs the house into two flats worth more than a single house, or worse, building another house in the garden!

If you can contact the builder a few years down the track then they will usually give a consent for the average small conservatory for £50-£100.

You would need to contact the builder on the phone first, and without saying where the property was, put the hypothetical point. If they put you through to someone who deals with consents under covenants then they will tell you their usual procedure and can judge whether you want to give them more details! The alternative (once the work is 12 months old) is to get a restricitive covenant indemnity policy. Your solicitor can arrange this quite easily but it is not available if you have contacted the builder about the property - hence the need to talk to them hypotehtically!

Never just write to the buidler's head office without first getting a telephone contact because the letter can go into a black hole - you have contacted the builder (and don't know whether he will reply or not) then you can't then have a policy.

As a conveyancing solicitor I believe the information given in the post to be useful but I accept no liability except to fee paying clients.

Rachel85

This is fairly common for new builds - some last even longer than 5 years. The key reason is to ensure that the builder maintains some control of the site whilst they are still there. So, for example, if you buy a house in the first phase you can't paint it pink and erect a 12ft high fence around it which would reduce the appeal of the site if the builder is to be there for a while.

Generally the clause will say that you have to ask the builder's permission for anything you want to do within 5 years. Once they're off site (and even when they're on site if it is something which increases the appeal of the area) they will generally give you permission (although may charge a nominal fee for the letter they send).

It may seem like a hassle getting permission and, of course, they will probably never know. However as I have just discovered, when you come to sell you will require this permission and it can be even more hassle getting retrospective permission.

If there is something your friend plans to do in particular it may be worth seeing if she is likely to get permission or perhaps see if they could give her it in advance?

Hope that helps?

Scooby_Man

Well, as far as i know, the house is not a new build or anything. The previous owner was a builder and made the amendment and sold the house after a few months of living in it.

We thought it was to do with whether the builder would like to use his work done as a reference for future clients.

david29dpo

the bottom line is its another way of making money. i have seen many amendments and covenants removed when a large wod of used notes has changed hands.