Buyers and deed of covenants

abipoppet

Hi all,

Not sure if you can help me...

I'm buying from a seller with no chain and four months into the process I've been asked to pay a fee for the deed of coventant of £500 plus VAT.

The property is a flat in a converted hotel which I believe the deed means I can access the flat via the foyer.

I feel this is an excessive amount, and I can't understand why they wait so long into the process before telling me of this cost?

Am I liable?

Thanks for any help! x

Fire_Fox

Who is making this levy? Who are 'they' who waited so long to tell you? Which country are you in, is the flat leasehold?

abipoppet

Hi,
The levy is coming from the managing agents that look after the building.
The solicitors have only been made aware of this charge apparently, although they have sold three flats in the same building recently.
The flat is leasehold.
Thanks

abipoppet

Sorry, in England

Fire_Fox

Four months is not necessarily that long, it may be your solicitors only put the queries to the freeholder or his agent agent a couple of months in. You as buyer have no contractual relationship to the freeholder or his agent so they don't have to volunteer any information to you.

These charges are legal but I believe they must be reasonable and you can challenge them at a Leasehold Valuation Tribunal if not. Do be aware tho you may well be paying not just for a piece of paper but for the freeholder's legal costs in preparing it. Some costs can still be challenged after they have been paid, read here
http://www.lease-advice.org/publications/

abipoppet

That's really useful. Thank you:j

Richard_Webster

If the managing agents make unreasonable charges they may be unreasonable in other ways - consider whether it is wise to buy the flat.

propertyman

Erm well before you scream about costs, I am not sure you understand what the "deed" is for.

Call your solicitor and ask them to explain- fully!

Is it a deed of variation as your solicitor has identified that the lease does not allow you to use the foyer? If so then £500 is about right, but the seller ought to be paying some or all of that as they cannot sell without it.

If it is a simple deed of covenant which is unlikely as you would not use a DoC to just grant a right over the foyer, then £500 is high.

:money:I'd certainly insist on a Do V so that when you come to sell the issue does not crop up again.

abipoppet

Thanks for all your help.
I understand they are trying to make the seller pay half of the cost now.
I will wait and see as I'm not in a mad rush to move in.
Will check with my solicitor.
:0)