Covenants

TheRoders

Afternoon all

I could really do with some advice if anyone has any information.

My buyers solicitors have been in touch today with some questions. We had a conservatory built (wooden built by my dad) in 2007. We checked everything regarding planning permission etc and all was fine however, the solicitors have asked about a covenant that has been placed on all off the properties on this estate that no building, temporary or permanent, shall be built on the plot. Everyone on the estate has had atleast a conservatory built, some with full extensions and on speaking to them, had no idea this covenant existed.

The covenant was put in place when the homes were built in 1985 and the builders no longer exist (Herron Homes).

The solicitors are now asking for a £200 indemnity to cover this breach. Is this covenant even enforceable now?

Any help/advice greatly received.Am waiting for my solicitor to phone

Hoploz

Yes this is pretty standard, if you've breached the covenant the indemnity is requested to cover it in the remote chance of it being enforced. And as it is you who has breached it it's reasonable for you to meet this cost. I did the same on my last house.

I presume you have the paperwork from when you bought the house? It should have been pointed out at the time. In my case I knew there was this covenant but like you I could see every other house in the street had been extended, and knowing my covenant was from 1958 it was unlikely to be enforced so i went ahead, but it's one of those boxes the solicitor (and possibly lender) will need to tick.

TheRoders

:mad: It was never pointed out to me and being a first time buyer, it was never brought up. Am so cross!! :mad: Will teach me to be naive!! 90% of the houses on the estate have had extensions!!

G_M

What exactly does the covenant say??? In full.

no building, temporary or permanent, shall be built on the plot.

?

I doubt a conservatory would contravene this. It is not a 'building'. That clause (if that is the exact wording) is proably to stop people putting a 2nd house or other seperate building on their plot of land.

Take legal advice. If the conservatory does not contravene the covenant, then simply refuse to pay for the insurance.

TheRoders

Just spoken to the solicitor. Apparently the mortgage will not release the funds unless I pay this insurance!

The full description is:
"Not to erect on the plot or any part thereof any building whether of a permanent or temporary nature except such as shall be in accordance with plans and elevations which shall have been approved in writing by the vendor or the vendor's surveyors for the time being and whose proper and reasonable fees therefor shall be paid by the persona submitting such plans and elevations for approval"

G_M

Ah! Bloody lenders. These days they are so pernickerty!

You could play hardball and insist the buyer pays for the insurance. The lender won't care who pays as long as the insurance is put in place.

Bluff the buyer and say "you want insurance, youpay for it, otherwise the deal is off".

Buyer will either knuckle under, or walk away....

TheRoders

Oh, I can't afford to lose my buyer so don't mind paying. It's our fault at the end of the day for being so naive. It's not our buyers fault at the end of the day.

Just can't believe I didn't know about this sooner!

G_M

TheRoders wrote: »

Oh, I can't afford to lose my buyer so don't mind paying. It's our fault at the end of the day for being so naive. It's not our buyers fault at the end of the day.

Just can't believe I didn't know about this sooner!

Then I'm at a loss to know what advice you are looking for.......

TheRoders

I had no idea what a covenant was and what could be done about it! If it was enforceable etc and if anyone had experience of this in the past.

Thank you for taking the time to reply.

Granariesgirl

From what I know, your solicitor can do b*gger all about the covenant: take his/her assertions with a huge pinch of salt!

We all have an annoying one on our copropriety & it will take a unanimous decision from us all & about a Grand to get it sorted (builder no longer exists - think he died about 15 years ago). Too much effort so we're letting it lie...

Good luck.

cayennepepper

When I sold my first house I had a similar issue with a shed I put up in the garden to store lawnmower etc.

When my Buyer's solicitor said it breached a covenant, I said "ok no problem, I'll knock it down". My Buyer promptly contacted me and asked me to ignore his solicitor and saying he wanted the shed, which was still new :rotfl:

The lender however didn't get involved, like in your case. Sorry, but it looks like you'll have to pay up.