Offer Accepted in April, Still arguing with neighbors...

Rebecca_1988

Hi All

Would really appreciate some advice on the following.

We are buying a property, offer was accepted Mid April 2014... :j YAY! However, it is now Mid July and we still aren't in :mad: !

The property in question is lovely and has been owned by a builder so he has renovated throughout to a high standard.

The reason it is dragging out so long is the current owner (M) who we are buying the property from, brought some land when he first moved in off a neighbor, this was all done legally and his name is on the land.



The person M got the land off has since come into money and is renovating their own house and have tried within the last two years on a few occasions to buy back the land from M, which he has refused on the point it would devalue his house and he would have no 'off road parking'.

He has sold it to us and taken out indemnity insurance, this I'm lead to believe is to do with the land, which he uses for parking, is off a big playing field with a private access road to the left hand side presumed use by council to get to the field for maintenance. (as a side note, there are approx 30 other garages and off road parking places off the private 'gravel' drive which is maintained by neighbors at communal expense)

M has also signed a declaration confirming that he has used this land as a car parking space for the past 3 years (his total time at the property).

All of this has gone to my solicitor and they have said they need a declaration from the people he purchased the land from to confirm that they used it also as a car parking space along the access road.

Long story short - The previous owners of the land are point blank refusing to sign any declaration to help with this at all and now we are at a bit of a stand off...

We have a young family and the four of us are currently crammed into my mum and dads 3 bedroom semi, which lovely as it is for them to offer, is infuriating, especially thinking that we would be in and able to enjoy our house and garden for the summer.

Our mortgage expires in September, and under the new mortgage regulations that came out just after our offer was accepted and mortgage agreed, I am not sure that we would be able to get another mortgage for the full amount should they refused to extend the offer.


Any advice of where we can go from here would be appreciated, I have asked my solicitor - but as ever... He isnt in the office! And will get back to me (estimate 1 week+)

Going out of my mind!

Thank you in advance
Bec

Kirstyb1987

It may not be as simple as this but my thinking is....do you really want the land?


Could you not buy the property, ask the neighbours to sign under the condition that you agree to sell to them?

egoode

The place may be nice but do you really want to live near difficult neighbours?

Rebecca_1988

Thanks for your replies

The place is nice, its not a palace, but we are more concerned with the new mortgage regulations we may not be able to get as much for our buck! As we will be a lot worse off.
I.E Lender said 2 days before new mortgage regs they would be happy to lend up to £135k, the same lender said after mortgage regs they would only lend us £95k.

In regards to buying the house without the land at the back, this has been presented as an option by the seller, but it accesses a massive playing field and with our two young children this would be perfect for football and generally playing on/getting to from our garden. Also I am not sure we could get another mortgage out or extend our mortgage to cover this parcel of land separately?

Thanks

anselld

Rebecca_1988 wrote: »

All of this has gone to my solicitor and they have said they need a declaration from the people he purchased the land from to confirm that they used it also as a car parking space along the access road.

Ask your solicitor why he needs the declaration.
Ask him what the risks are in proceeding without the declaration.

Solicitors try to protect your interests but sometimes they are over-zealous and not very pragmatic. If you are happy that the risks attached are unlikely/manageable then instruct the solicitor to proceed without the declaration.

Rebecca_1988

Thank you so much. I am a bit scared of my solicitor!
But I will chase for that information and see if it does in fact pose a risk to us.

Bec

Bluebirdman_of_Alcathays

Rebecca_1988 wrote: »

Thank you so much. I am a bit scared of my solicitor!
But I will chase for that information and see if it does in fact pose a risk to us.

Bec

Don't be scared - they work for you!

I also echo the first response given - if you don't really need the land is it not easier to give the neighbours what they want?

Raggie

Kirstyb1987 wrote: »

It may not be as simple as this but my thinking is....do you really want the land?


Could you not buy the property, ask the neighbours to sign under the condition that you agree to sell to them?

Would you not need the lenders permission to sell the land?


as the loan was taken out based upon the value of the property with the land.. so to sell it "may" reduce the value..


as the mortgage company have first charge, any disposal will need their permission.

Rebecca_1988

Thanks for the reply.

We would also use the land for parking a car ourselves - So it would be beneficial to us, it could mean that we may struggle to sell in the future as a chunk of the bottom of our garden would belong to someone else, and also no access to lovely playing field!

I have since phoned my solicitor for advice based on what has been said, they responded with the printer is broke and will review information when it is fixed.... !

Oh dear.

Rebecca_1988

I asked my solicitor to speak with the mortgage lender to see what affect if any no car access at the back would have on our LTV, they said they cannot go back to the Lender without hard facts for just an estimate.
We were going to see if this could of been knocked off the price of sale.

But without any idea on valuation etc, seems like a dead end. As we would still have the land, we just wouldn't be able to use for car parking.

Thanks
Bec

eddddy

Hi Rebecca_1988

Looking at the council owned access and indemnity insurance (and ignoring the problem with the neighbour, for the moment). It's probably easier to understand with an example. Let's say:

The house is worth £220k with parking access
The house is worth £200k without parking access

If the vendor has taken out indemnity insurance against the council stopping you using their access - it should indemnify you against any resulting loss.

i.e. it should pay out the £20K reduction in value of the house.

BUT read the policy carefully to see if it really will do that, look at exclusions etc.

But I have never claimed on an indemnity policy, I don't know anyone who has - and I suspect it would be a long drawn-out, painful process. (Some might say you should drop the offer price a little, because of the risk of having to go through this pain.)

If the indemnity policy doesn't exist or is for something else, you should look at this differently - perhaps as a risk (or a bet).

For example, you might offer £208k on the basis that you may keep the parking (and so 'win' £12k) or you may lose the parking (and so 'lose' £8k).