Section 38 & 104 bonds and agreements

alyhunter

Hi we have jumped through so many hoops to cover special conditions put in place by our building society for our new home we thought we had it all wrapped up ready to sign but noooooo.... they are now saying that prior to completion the Solicitor has to ensure that both the roads and sewers serving the property have been adopted by the Local Authority or the appropriate Section 38 and 104 bonds and agreements are in place. There are 7 roads all running adjacent to each other off a main road and are all unadopted. The Deeds say that all the property owners on those roads jointly pay for the costs of any repairs etc. How do we get round this as this is the last hurdle stopping us from getting our beautiful house. The houses by the way are 130 years old not new builds.Any advice or reassurance would be gratefully received.
Thanks
ALyson :beer:

Fire_Fox

Welcome! What does your conveyancer have to say?

kingstreet

Anything which may adversely affect the security, preventing a quick sale after repossession, is going to be an issue for a mortgage lender. Unadopted private roads and sewers are one such issue.

Was the surveyor aware of this when he visited to carry out the lender's valuation? If not, has the issue been referred back to see if it affects the valuation?

The impact and scope of the issue are best discussed with the lender. A potential solution will be your solicitor's province, as FF has suggested.

You could also ask your neighbours-to-be how they dealt with the issues.