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HCA and Deed of Variation to Lease
deed02392
Posts: 80 Forumite
Hi all,
Last October I completed on the purchase of a help to buy flat at a new build estate. The result being that the HCA have a 20% equity stake in the value of my property.
Fast forward to February when I applied to purchase a parking space and have it added as a variation of the lease. I got the deed of variation from the developer (from whom I am buying the space), signed and witnessed and returned to my solicitor.
4 months and a £60 administration fee later, the HCA have responded with apparently different terms to what my solicitor expected.
Firstly, that they require to be a party of the deed of variation as opposed to simply consenting to it.
Secondly, they are stipulating that the Help to Buy loan will apply to both the property and parking space, so that when I come to repay the loan, I will have to pay 20% of the property value including the increase associated with the use of the parking space. This is possible apparently because even though there is a provision that the market value can be calculated minus any improvements I make, they are refusing to allow this.
As I see it, this means the HCA are getting free money out of my own investment in purchasing the right to use the parking space. Since this feels wrong, I guess I'd like to know if anyone has advice as to how I might argue their right to have any increase in market value that's a direct result of my own investment?
Many thanks.
Last October I completed on the purchase of a help to buy flat at a new build estate. The result being that the HCA have a 20% equity stake in the value of my property.
Fast forward to February when I applied to purchase a parking space and have it added as a variation of the lease. I got the deed of variation from the developer (from whom I am buying the space), signed and witnessed and returned to my solicitor.
4 months and a £60 administration fee later, the HCA have responded with apparently different terms to what my solicitor expected.
Firstly, that they require to be a party of the deed of variation as opposed to simply consenting to it.
Secondly, they are stipulating that the Help to Buy loan will apply to both the property and parking space, so that when I come to repay the loan, I will have to pay 20% of the property value including the increase associated with the use of the parking space. This is possible apparently because even though there is a provision that the market value can be calculated minus any improvements I make, they are refusing to allow this.
As I see it, this means the HCA are getting free money out of my own investment in purchasing the right to use the parking space. Since this feels wrong, I guess I'd like to know if anyone has advice as to how I might argue their right to have any increase in market value that's a direct result of my own investment?
Many thanks.
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