Urgent HELP -Covenants

LEETOMLIN1984

Bit deep for a Saturday night but here goes;

I'm currently in the process of selling my home however it has all stalled due to a covenant found on the Land registry which reads

Not to make any alterations or additions to the exterior of the property nor to erect any structures or new building thereon

our buyers want to build a loft conversion however the solicitors have obviously pointed out this covenant! I believe the only persons who can enforce/act on a covenant were the persons who wrote it onto the deeds???????? In this case its Moat Homes. I have written confirmation from `Moat homes stating they have no interest in the property whatsoever and any covenants enforced by them are null & void HOWEVER the buyers solicitor won't accept that and stands by the fact that its written into the deeds so its enforceable and active?

My buyers want the property but will be pulling out Monday if there is no way round it

Any help would be greatly appreciated as my solicitor has more or less washed their hands of the whole thing as the process started 11 weeks ago and this has no reared its ugly head! They say they can't help regarding the covenant on my property

Chanes

Would they accept an indemnity policy like this:
http://www.gcs-title.co.uk/instant-issue/policies-glance/restrictive-covenant/

It seems they are being incredibly picky if the enforcement was down to a company that clearly say they have no interest in doing so. Could it be enforceable by anyone who wanted to do that?

melstar11

Why do you have the statement from Most Homes? Have you asked for it from them as part of the conveyancing process?

Would they be willing to put that in writing to the buyers? Could you pay Most Homes' reasonable legal fees to have the covenant removed from the title?

What have your solicitors actually said on the subject of the covenant?

melstar11

I don't​ think an indemnity will be available if the OP has contacted the covenant holder during the sale process.

melstar11

I don't think an indemnity will be available if the OP has contacted the covenant holder as part of the sale or process.

Chanes

melstar11 wrote: »

I don't​ think an indemnity will be available if the OP has contacted the covenant holder during the sale process.

I didn't know that, I thought that only applied to councils? Oh well, it was just a thought.

G_M

melstar11 wrote: »

I don't think an indemnity will be [STRIKE]available[/STRIKE]valid if the OP has contacted the covenant holder as part of the sale or process.

but nonetheless if it satisfied the buyers.........

The problem is that depending on the full text, Moat homes may not be the only party benefiting from the covenant.

melstar11

Good point

LEETOMLIN1984

Thank you all for your replies!!! The buyers don't want an indemnity they want to be able to build and live peacefully! Myself and the estate agent has tried to rubbish the covenants however the solicitor has drilled it home that its a problem! The buyers solicitor mentioned that the neighbours could enforce the covenant but i can't find that stated anywhere in the land registry! My solicitor, as i said has more or less washed his hands of it has the buyers solicitor is demanding it be removed completed which is obviously long winded? Can moat homes take it out at a cost...? i wast aware of this? Moat don't actually hold any paperwork for the property has they cut their ties on it in 2003

parking_question_chap

Am I missing something? Whats it got to do with the solicitor? Surely they buyer should decide if they are willing to proceed or not.

Generally these kind of covanants are only put on to stop buyers making addition which devalue the value of adjacent properties. Once all the properties have been sold the developer couldnt care less, and they have confirmed as much in writing.

LEETOMLIN1984

I went to moat homes and they emailed me stating they have no interest in enforcing any covenants but because its still physically in the title they won't budge on it

I have 3 emails from moat see below

Dear Mr Tomlin / Beth

Sorry for the delay whilst I have been in a meeting. As the freehold of the property is no longer held by Moat, I can confirm that we have no interest in previous or future works that may take place at 25 Foxglove Rise. The shared ownership lease agreement is no longer in place and any obligations within this lease are no longer applicable.

Kind regards

Sarah Peake l Resales manager l Moat l 0845 359 6323 l Fax 0845 359 6997 l

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Hi Beth

I asked for confirmation from our home ownership team, who deal with leasehold enquiries, about the covenants. As the property has transferred out of Moat’s stock, any covenants within the shared ownership lease would have fallen away when the freehold was transferred. I have not had sight of any documentation for this property as we no longer hold any information relating to the original sale but I can confirm that there is no obligation to come back to Moat regarding any works that have been done to the property.

Kind regards

Sarah Peake l Resales manager l Moat l 0845 359 6323 l Fax 0845 359 6997 l

My working hours are Monday, Thursday, Friday - 9am-5pm and Tuesday - 10am-2pm

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Dear Mr Tomlin

Further to my previous email, I write to confirm that any covenants within the deeds that are enforceable by Moat are now null and void.

Kind regards

Sarah Peake l Resales manager l Moat l 0845 359 6323 l Fax 0845 359 6997 l