Pre-emption (first refusal) clause removal

SST8

Hello,

I’m sorry if I’ve posted this in the wrong place, I’m new to all this.

We saw a property in January that we loved and put in an offer around the 27th. Fast forward to now and we are no closer to closing the deal. Turns out the property used to be shared ownership (now 100% staircases) and there is a first right of refusal (pre-emption) clause in the lease our lender doesn’t like (quite understandably).

We managed to get a waiver letter from the freeholder but the lender still isn’t happy and wants the clause removed/lease varied before they proceed with the mortgage.

No-one we are working with can seem to give us a straight answer to this so I’m asking here in case anyone can help - how long does it take for a pre-emption deed of variation to be put in place? Someone at the freeholder said it can take 3-4 months as a minimum but he didn’t work in the team that actually does it. It is now coming up to four months since our offer was accepted and we’re not sure we want to wait another four months for this to complete! We’re living with family at the moment and have a 3-4hr round trip commuting to and from work, and the idea of doing that for another 3-4 months makes us feel ill!

Any suggestions/advice/help will be very welcome. We’re desperate!!

eddddy

Varying the lease will be at the freeholder's discretion.

If they wanted, they could do it immediately, or in 4 moths time, or never.

I guess the delay is because the freeholder can't decide whether they want to do it or not.

Realistically, it sounds like there's no benefit to the freeholder in doing the variation - in fact, it's detrimental to them. So the only reason they would do it is as a 'goodwill gesture' or favour.

Perhaps the best plan is to put pressure on the seller, saying that unless they can persuade their freeholder to cooperate, you will start looking at other properties.

SST8

Thanks @eddddy - I should have mentioned that the seller said they!!!8217;ve agreed to do it, but I was just wondering how long it can take as no one seems to know or able to find out.

We!!!8217;ve told the estate agent that if we don!!!8217;t have a firm reply by Monday we!!!8217;re pulling out of the sale and have already started looking at other properties.

Fingers crossed!

Mickeyyy

Hi!

We are exactly in the same situation. Could you please advise what was the outcome in your case ? In our scenario landlord is cooperating and issued the Deed of Variation.

I am trying to establish now how long it will take to register with Land Registry?

Thanks,
Mick