Overage and mortgage

Too_Hairy_Husky

Help! Please!

I have searched Overage on the forum and it's not looking good!

When we found the house we are hoping to buy we were told there was a Deed of Covenant relating to the land at the rear. It meant that any building works (houses etc) would mean we had to pay 40% of the profit to the covenant "owner". We were fine with this and told London and Country who we obtained our mortgage offer from.

We broke the chain and moved out of our house at the end of January as our solicitor reassured us that it would only take a couple of weeks to sort. Five weeks in a holiday cottage later...

Our solicitor rings tonight to say it is doubtful our lender (Woolwich) will lend if the Deed of Covenant remains in place as it is an Overage.

I never used the work Overage with L&C as it was never called that before today. Can anyone offer any advice please? I'm not hopeful - but any good news would be appreciated!!!

Too_Hairy_Husky

Anyone...?

GMS

Seek guidance from your solicitor as they know the terms of any clauses. Seeking advice in a public forum is unlikely to help in all honesty.

Consider the situation very carefully. If you are struggling to buy then this will mean you will struggle to sell as any new buyer will encounter the same issues. Do you really want to put yourself in a position which may prove impossible to get out of?

Personally I would start looking for an alternative property.

Let_Us_See

Too_Hairy_Husky wrote: »

When we found the house we are hoping to buy we were told there was a Deed of Covenant relating to the land at the rear. It meant that any building works (houses etc) would mean we had to pay 40% of the profit to the covenant "owner".

You are correct in your understanding of overage. However, I have no magic solution, except to try other lenders.

I assume details of the overage covenant was included on the application form, or was it only picked up when your solicitor obtained a copy of title deeds? Get either your solicitor or adviser to contact Woolwich for a final decision.

Too_Hairy_Husky

Thanks guys - we had the details of it on the Estate Agent's details so we knew all along. We asked the solicitor to check it out in the new year but obviously they only looked at it yesterday.

They are trying to ascertain the details of the Overage with the seller's solicitor today and will then put it to the Woolwich.

Keep your fingers crossed for us...