Freehold property with rent charge instead of service charge

Aqua26

Richard_Webster wrote: »

If the property is freehold the only way a service charge can be collected for maintenance of shared items such as private drives, gardens etc is by means of a rent charge so there is no way this can be changed to something else.

is it an extract from some rule book etc ?

AdrianC

Aqua26 wrote: »

its just the rentcharge word itself which my solicitor has mentioned that should be changed

A rose by any other name...

You can't just unilaterally change the name of a legal concept because you don't like it. The issue - if there is one - is around the concept, about the owner of the property being liable for maintenance costs of the shared areas of the development.

daveyjp

Aqua26 wrote: »

Richard_Webster wrote: »

If the property is freehold the only way a service charge can be collected for maintenance of shared items such as private drives, gardens etc is by means of a rent charge so there is no way this can be changed to something else.

is it an extract from some rule book etc ?

'rule book' = English Law. Law of Property Act 1925

The alternative is a restriction on title.

Kyresa

Aqua26 wrote: »

thanks yes all looks good - its just the rentcharge word itself which my solicitor has mentioned that should be changed - we got the house and we loved it since day one also sellers had their first sale fell through and needed a quick which even got them accepting a lower offer of 10K from ourside - we are near to exchange in 2 -3 weeks and now my solicitor has raised it that he is not getting any response back from the sellers about this issue !!!! he has also written to my lender (one of very popular high street bank) about checking on their preference if they are willing to proceed with having indemnity policy in place !!!:eek:

I'm guessing the issue is that the rentcharge deed does not contain a clause that if you fail to pay any of the rentcharge, they will notify the bank and allow them to remedy the situation before they slap a lease on the property....

Aqua26

Kyresa wrote: »

I'm guessing the issue is that the rentcharge deed does not contain a clause that if you fail to pay any of the rentcharge, they will notify the bank and allow them to remedy the situation before they slap a lease on the property....

yes exactly thats what my solicitor is proposing to either amend the word or add this clause - which either way is going to take v long and estate agents are saying that seller dont want to wait !!

Aqua26

I have spoken to neighbours and also couple of friends who are living on same road - they never had any issue and their solicitors didnt mention this to them - though they had this one their registry as restriction.. I am worried where I stand now as my solicitor is v picky and not suggesting to move forward also he has declared it to my lender and he is awaiting their response !!

AdrianC

If your lender don't object, then the ball is entirely in your court. Your solicitor should be erring on the side of caution, and making you aware - simply because not to do so would risk any future comeback, if you were to decide that it was an issue at a later date.

But the decision is yours and yours alone.

Aqua26

yes I have decided to proceed once lender come back !!

davidmcn

AdrianC wrote: »

If your lender don't object, then the ball is entirely in your court. Your solicitor should be erring on the side of caution, and making you aware - simply because not to do so would risk any future comeback, if you were to decide that it was an issue at a later date.

But the decision is yours and yours alone.

The solicitor should be explaining what the risks are, which they don't appear to be trying to do.

Seems to be quite a lot of this going on, judging from other threads - solicitors just asking the clients whether or not they want to accept something without actually offering any advice.

Aqua26

The property is subject to a rentcharge which, despite our requests going back over 2 months, the seller’s solicitors have refused to refer to the developer for a Deed of Variation.

The purchaser with the other estate owners will eventually become the rentcharge owner and this is the explanation given by the developer’s solicitors who seem to think that in these circumstances you will be satisfied and not require any further action to be taken.

Is this indeed the case?

We have also obtained a quotation (enclosed) for an estate rentcharge (mortgage only) insurance policy the terms of which can or will be met which protects your security but of course is of little assistance to our client.



above are the wordings sent out to Lender - not sure what will they react it to !!!