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Freehold Issues
peterthomarse
Posts: 3 Newbie
Hi,
We are in the middle of buying a freehold property. The property is currently leasehold but the idea is that the vendor will arrange purchase of the freehold to coincide with our purchase.
Our solicitor has received a copy of the land registry form for the freehold transfer and the following right is contained within:
All mines and minerals (other than coal and mines of coal and other minerals (if any) and vested in the Coal Authority or its successors) lying within and under the Property and capable of being worked by underground workings with full power to win and work and get the same and any mines and minerals under any adjoining or neighbouring land without leaving any subjacent or latoral support for the Property of any building thereon and so that the Transferee and his successors shall not be entitled to any compensation for any damage caused to the Property or any buildings thereon by reason of the winning working or getting of the excepted mines and minerals or such other mines and minerals as aforesaid.
Our solicitor points out that they are reserving the right to mine under the property without having to provide support to the property and not obliged to pay any compensation for any damage cause by doing so. As a result, our mortgage provider are unwilling to release funds for the purchase. Is this common?
The freeholders have suggested removing the part about not being obliged to pay compensation but our mortgage provider is insisting that they need to write in that they WILL pay compensation. Are our mortgage provider correct in their demands or are they being over-particular?
We are in the middle of buying a freehold property. The property is currently leasehold but the idea is that the vendor will arrange purchase of the freehold to coincide with our purchase.
Our solicitor has received a copy of the land registry form for the freehold transfer and the following right is contained within:
All mines and minerals (other than coal and mines of coal and other minerals (if any) and vested in the Coal Authority or its successors) lying within and under the Property and capable of being worked by underground workings with full power to win and work and get the same and any mines and minerals under any adjoining or neighbouring land without leaving any subjacent or latoral support for the Property of any building thereon and so that the Transferee and his successors shall not be entitled to any compensation for any damage caused to the Property or any buildings thereon by reason of the winning working or getting of the excepted mines and minerals or such other mines and minerals as aforesaid.
Our solicitor points out that they are reserving the right to mine under the property without having to provide support to the property and not obliged to pay any compensation for any damage cause by doing so. As a result, our mortgage provider are unwilling to release funds for the purchase. Is this common?
The freeholders have suggested removing the part about not being obliged to pay compensation but our mortgage provider is insisting that they need to write in that they WILL pay compensation. Are our mortgage provider correct in their demands or are they being over-particular?
0
Comments
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Who will pay compensation? There seems to be some confusion...
It appears that the only mining rights excluded (ie that you don't own) are for coal?
The rest of the rights remain with the freehold, which you will now own.0 -
The current freehold owner are reserving these rights even though we would own the freehold.0
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So it's the current freeholder introducing this term - it's not a term inherited from a previous freeholder?
If so, I'd be wondering why - do they "know something"? Is the area earmarked for fracking, for example?
The government plan is that landowners would get compensation if fracking was done under their land. Is the freeholder wanting to retain the right to that compensation?
Or is it something more innocent?0 -
Eddddy,
This is the current freeholder retaining the right. They owned the land prior to the property being built and sold a series of 99 leases in the area where numerous properties have been built. The owner have owned the leasehold on the property since it has been built and are looking to buy the freehold due to the time remaining on the leasehold.0 -
An indemnity policy should be possible.0
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