Current house purchase - Rentcharge issue

wazza07

Hi,

We have received a pack of information from our solicitor in regards to our house purchase (Freehold). Our conveyancer has noted that there is a rentcharge on our property of £5 per annum payable to Shenstone Properties Ltd. Our solicitors are required to notify them of our ownership on completion and their fee is £50. They also noted the buyout charge is £250 or £550 to buy the rentcharge and extinguish covenants. On looking at the Charges Register we’re still slightly confused – Point 2, last paragraph in regards to the £5 being freed and discharged. This is where we're a bit confused, does the £5 charge to Shenstone still apply to us or not? We've been struggling to get through to our solicitor today hence the post. 

 

Charges Register

1.       (xx/xx/2005) The land in this title and other land is subject to a yearly rentcharge of £42 created by a Conveyance date xx/xx/1930 made between (1) and (2).

The said Deed also contains covenants.

NOTE 1: Rentcharge registered under LAxxxx.

NOTE 2: By a Conveyance dated xx/xx/1931 referred to below the land conveyed was informally exonerated from this rentcharge.

2.       (xx/xx/2005) The land in this title is subject to a yearly rentcharge of £5 created by a Conveyance dated xx/xx/1931 made between (1) and (2).

The said Deed also contains covenants, exceptions and reservations.

 By a Conveyance dated xx/xx/1998 made between (1) and (2) the rentharge of £5 referred to above and the positive covenants associated therewith were expressed to be freed and discharged in the form therein mentioned. 

End of Register  

The solicitors have also supplied a copy of the title plan LAxxxx (Note 1) in regards to the rentcharge. It reads "the registered rentcharge is charged upon and issues out of the freehold land shown and edged with red on the plan of the above title filled at the Registry known as xx to xx (odd numbers)". This would include our address.  It then lists a number of addresses under “Parts of the land charged are registered as follows”. However, the property we’re purchasing isn’t listed here (amongst a few others on the road). It does under Title Absolute mention Shenstone Properties Ltd (xx/xx/1990) as well as a restriction. The £5 doesn’t bother us necessarily, but the very negative reviews/tactics of Shenstone does. I’ve done a bit of digging around and it mentions about applying for a Redemption Certificate which costs roughly 16 times the yearly payment (much cheaper than Shenstone have offered). 

Thanks

dimbo61

First of all the Rentchage issue finishes in 2037 when they can no longer charge you.
We are in the process of sorting this with our solicitor.
We purchased a house 5 years ago and have only recently received a demand for the £5 Rentchage backdated 5/6 years.
They have calculated the amount to be £3.21 per year ( Can't understand why ) but have also offered us the chance to pay £80 to pay the remaining 17 years up to 2037 + arrears already owed and remove the Rentchage.
We are waiting for our solicitor to check if this is a real company or a scam.
We hope to get the solicitors to pay them and we will pay the solicitors costs.
I have also read an article from Forbes solicitors about Rentchage and High costs/legal charges.

greatcrested

wazza07 said:

Hi,

....... Point 2, last paragraph in regards to the £5 being freed and discharged. This is where we're a bit confused, does the £5 charge to Shenstone still apply to us or not? We've been struggling to get through to our solicitor today hence the post. 

Charges Register

2.       (xx/xx/2005) The land in this title is subject to a yearly rentcharge of £5 created by a Conveyance dated xx/xx/1931 made between (1) and (2).

The said Deed also contains covenants, exceptions and reservations.

 By a Conveyance dated xx/xx/1998 made between (1) and (2) the rentharge of £5 referred to above and the positive covenants associated therewith were expressed to be freed and discharged in the form therein mentioned. 

End of Register 

I would be confused like you. I'm no expert but it looks like the rentcharge and covenants no longer apply. In your position I would

a) read carefully the Conveyance dated xx/xx/1998, and

b) ask your conveyancer to confirm - that's what you are paying for!

wazza07

greatcrested said:

wazza07 said:

Hi,

....... Point 2, last paragraph in regards to the £5 being freed and discharged. This is where we're a bit confused, does the £5 charge to Shenstone still apply to us or not? We've been struggling to get through to our solicitor today hence the post. 

Charges Register

2.       (xx/xx/2005) The land in this title is subject to a yearly rentcharge of £5 created by a Conveyance dated xx/xx/1931 made between (1) and (2).

The said Deed also contains covenants, exceptions and reservations.

 By a Conveyance dated xx/xx/1998 made between (1) and (2) the rentharge of £5 referred to above and the positive covenants associated therewith were expressed to be freed and discharged in the form therein mentioned. 

End of Register 

I would be confused like you. I'm no expert but it looks like the rentcharge and covenants no longer apply. In your position I would

a) read carefully the Conveyance dated xx/xx/1998, and

b) ask your conveyancer to confirm - that's what you are paying for!

Yeah we definitely need our conveyancer to confirm. We’ll ring them tomorrow and try make sense of it all and see if they can get hold of the 1998 Conveyance as they’ve not supplied it with our pack. I’ll do what I can to avoid Shenstone as they seem like an awful company to deal with!

greatcrested

wazza07 said:

greatcrested said:

wazza07 said:

Hi,

....... Point 2, last paragraph in regards to the £5 being freed and discharged. This is where we're a bit confused, does the £5 charge to Shenstone still apply to us or not? We've been struggling to get through to our solicitor today hence the post. 

Charges Register

2.       (xx/xx/2005) The land in this title is subject to a yearly rentcharge of £5 created by a Conveyance dated xx/xx/1931 made between (1) and (2).

The said Deed also contains covenants, exceptions and reservations.

 By a Conveyance dated xx/xx/1998 made between (1) and (2) the rentharge of £5 referred to above and the positive covenants associated therewith were expressed to be freed and discharged in the form therein mentioned. 

End of Register 

I would be confused like you. I'm no expert but it looks like the rentcharge and covenants no longer apply. In your position I would

a) read carefully the Conveyance dated xx/xx/1998, and

b) ask your conveyancer to confirm - that's what you are paying for!

Yeah we definitely need our conveyancer to confirm. We’ll ring them tomorrow and try make sense of it all and see if they can get hold of the 1998 Conveyance as they’ve not supplied it with our pack. I’ll do what I can to avoid Shenstone as they seem like an awful company to deal with!

It's a 1998 conveyance - definately post-compulsory registration, so I'd be surprised if the Land Registry don't have a copy. You can order a paper copy here(form OC2) for £6. Either call them to check they have it,or post on the Land Registry thread here.

wazza07

Thats brilliant, thanks so much! I’ll get that checked out.