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pre emption clause
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i tried convincing HA, they dont want to remove the clause. They just say no, and they are not be exercising RTB either.
Not sure what can be done. any help is appreciated.0 -
The key item is how long the pre-emption right will exist - if there is a short time to go the current (potential) purchaser will probably take it (and there are lenders who will enable this).
If it is a long term or life-time covenant he/she would be well advised to walk-away (but that is their decision).
If they wish to proceed get them to contact a broker who understands and has dealt with purchase of properties with pre-emption in place and (subject to the rest of their status) it should be quickly sorted.
If the HA won't release the pre-emption (as I suspected they wouldn't) there is no other choice - the bad news is, if this is a life time covenant, the value of the property is adversely affected and you may be owning it for some time !!Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
its for 21 years. Let me check whether they could bring this down.0
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How long have you had the place ? I am assuming less than 10 years ? In which case whoever buys it is in danger of having a 'cash buyers' only property on his/her hands for 10 yrs plus. Not a situation I would recommend to a client unless they get themselves a 'real deal'.
The potential impact of pre-emption clauses at the initial purchase stage is often missed by buyers, solicitors and brokers alike. We warn our right to buy clients very heavily about this - but we do very little new build/shared ownership type stuff so really don't have much contact with this sort of client (but my view is that they should be warned equally clearly - albeit not every HA by any means does this).
I would add I see no real reason why they should - but if/when they do it is a major problem.
In the OP's case it would be more work for the HA to adjust the covenant period than to remove it - I think there is little chance of that happening.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
yes i had flat less than 10 years0
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