Deed of Variation for error in lease

davidmcn

AdrianC wrote: »

Except the RPI increase isn't due to kick in until year 25.

Year 30.......

Jigglebiz

Appreciate everyone’s thoughts, it has been very helpful . I’ll update when I get some news back

getmore4less

AdrianC wrote: »

Except the RPI increase isn't due to kick in until year 25.

davidmcn wrote: »

Year 30.......

It kicks in at year 25 but that will be zero increase because the same month is used for the calculation.

Tom99

Jigglebiz wrote: »

According to my solicitor the ground rent we pay now is correct as it is indexed to inflation.
We are pursuing the DOV to amend the discrepancy in the lease.
I will be trying to claim back the costs from the solicitor.

Since the lease quite clearly says the rent is £100 for the 1st 25yrs don't trust that solicitor to check that the DOV is correct.

Jigglebiz

That’s a fair point, but it will be the buyers sol who will approve the draft DOV to allow exchange. I couldn’t care less about the DoV , I just want it done so we can exchange and get this over with.

Jigglebiz

Advice sought on the latest development on this...

The freeholder’s agent have advised that they will not be getting back to us with the decision about whether to grant the DoV or not for at least a week. If it is granted, it will then be several weeks before the draft papers are drawn up.

Both the buyer and ourselves are keen to progress to exchange.

With the existing issue do you think it’s reasonable to suggest to the buyer that we deduct the cost of the DoV from the sale price so that the buyer can proceed to get it themselves after completion (presumably once the freeholder has agreed to it)?

Any other suggestions for moving forward welcomed. We can’t wait months now, all other enquiries have been answered and we’re 5 months in.

G_M

Certainly an option if it helps you get to Exchange.


But I doubt the buyer will agree as they seem ultra-cautious and will have no guarantee the freeholder will actually agree the DOV. Yes, they get a bit knocked off the price, but will that satisfy their concerns......?

Jigglebiz

Agreed, I just wonder :
- whether the buyer is aware of the situation in detail or if they are just following the advice of their solicitor
- why the buyer is (according to the estate agent) very keen to progress to exchange while simultaneously insisting on a DoV for a reasonably minor lease issue that would be expected to take weeks if not months. Anyone I’ve mentioned deed of variation to has told me just how long and drawn out the process can be, even if the work itself takes the freeholder’s solicitor an afternoon.

So I’m considering making contact to the buyer to try and see where they stand on this.

davidmcn

Are they buying with a mortgage? If so then I would expect the solicitor to be reporting to the lender about this, and the lender is more likely to want it sorted (or insured in a way which protects them) rather than the buyer simply getting some money knocked off the price (as realistically the lender doesn't know if or when the borrower will actually get it sorted, and won't want to bother keeping tabs on it as an issue).

Jigglebiz

Yes, they are buying with a mortgage. I guess the solicitor might be insisting on the DoV because the lender is being firm on that then? The only way to find out is to get the solicitors to talk - they don’t seem fond of talking on the phone with each other?! Things would move so much faster and with less confusion if they did.