What does the lease prohibits or restricts alienation mean?

onix22

We found a flat for sale at auction with this clause written in the title. What does it mean?

We are FTB and properties are strange territory for us :j

DTDfanBoy

It means you need to read the lease

As a FTB you really don't want to be purchasing a flat at auction

G_M

Try google:

http://www.fsp-law.com/articles/alienation

http://www.practicalconveyancing.co.uk/content/view/9587/1321

But when you get your solicitor to check the lease he'll explain it to you.

You are paying a solicitor to check the Title etc before you contemplate bidding yes.....?

onix22

It has a really good price!

We are sick of having our offers rejected, and we thought the auction is a good place to buy as the prices are decent.

Hoploz

It'll probably go above the guide price,

onix22

We thought we don't need a solicitor. Does everybody use one?

PasturesNew

onix22 wrote: »

...the prices are decent.

Most often because there's a HUGE problem. Often making them unmortgageable. And it could be anything.

It could be a short lease .... or an absent freeholder ....or subsidence .... or it's got a demolition order on it. No end of problems for FTBs with auctions ... and flats.

Some you're not allowed to live in, some might have specific age restrictions.

In your case, returning to the question asked, this refers to who is allowed to live in the flat, and/or who could potentially own it. It might not be allowed to be let out, so owner-occupiers only. Or, potentially, that the seller isn't allowed to sell it on at all ....

You'd need to see the legal pack and get a solicitor to advise.

But ... rather than that, close the auction catalogue, take it outside, burn it, then come back here to MSE to let us know you're safe from making a big mistake.

G_M

onix22 wrote: »

It has a really good price!

We are sick of having our offers rejected, and we thought the auction is a good place to buy as the prices are decent.

Given you've already displayed an alarming level of ignorance about property law, you'd be mad to buy without using a solicitor. You are clearly not competant to check the Title yourself.

Properties go at auction for various reasons, which are not helpfully highlighted to buyers!

* the property has a serious structural problem
* the Title is uncertain, has serious restrictions, or is otherwise dodgy
* it has a sitting tenant
etc

unless you are experienced you'll end up with a worthless building!

Oh - and the 'guide price' is designed to get people interested. It is not the price it will sell for.

So. Before bidding

1) visit some other auctions and learn
2) make sure you understand the legal pack and it is acceptable to you (do not rely on a few odd people on the internet for this!)
3) make sure you know the building is sound and the condition is acceptabe to you, either via your own inspection if you feel competant, or via a survey
4) make sure you have the money in place. That means either cash (all of it) or a firm mortgage offer. NOT a mortgage in principle.

Only then consider going and bidding.

usefulmale

onix22 wrote: »

We thought we don't need a solicitor. Does everybody use one?

Bloody hell, are you serious?

Honestly, stop. Right now. Leave auctions well alone. The mistakes you will make will blight your life till the day you die.

PasturesNew

onix22 wrote: »

We thought we don't need a solicitor. Does everybody use one?

Only full cash buyers would be able to get away with not using one.

If you are borrowing a bean, you will be forced to have one.

Pretty much EVERYBODY uses a solicitor..... maybe 99.99% of buyers/sellers will.

Please see my previous advice about taking that catalogue outside into the garden.....

GwylimT

Have you got the legal pack? If yes get a decent solicitor to look over it.

Have you set a maximum budget?

Do you have funds in place to actually buy the property?

I have bought at auction, I had two solicitors go through the legal pack, I made sure I could gain insurance (coach house with land under arch not part of property) and I had a full structural survey done.