Deed of Variation to the Conveyance

snaps22

Last year we bought a house in very poor condition. The plan was to demolish and replace with 3 apartments. We have now got planning to do this and are now costing the project to ensure its a financially sound plan.
Although we have bought the freehold there is a covenant on the land (not unusual in this area). The agent who acts for the estate in question has just sent details through stating a Deed of Variation to the Conveyance would be needed and expected costs. These seem extortionate to me but this may be normal. They want a 'consideration' (con) of £9,000 + an agents fee of £500 +VAT and to top it off, the reimbursement of their client's solicitors costs - sum unspecified. All I can see we get out of this is the approval of our drawings. Am I just being extremely naive?
I'll be interested if anyone on the forum has knowledge of our current circumstance and their views.

mightymouse

Hi

You are presumably taking your own advice from say a solicitor.

I suspect you have a number of professionals working with / for you who could advise you but the covenant implications would have been explained to you on purchase.

silvercar

I would guess that the "consideration" is a share of the potential profits of your plan.

Either you will have to pay up or you won't get the permission you need. Agent fee and paying their legal costs is the norm, the £9k consideration depends how valuable the conveyance is to you. Try and negotiate if you can, but accept that at the end of the day, they have the power to halt your scheme.

Debt_Free_Chick

Yes - the consideration is effectively the price you pay to the other party, to get the covenant varied.