Overage Clause on New build - help!!

DavyNix

Hi All,
I live on a newbuild estate and am looking to re-mortgage.  We have built an extension between now and the last mortgage which appears to have triggered overage clause.  I've done the research to understand what they are but am still bemused and confused as to how it can apply to a small house on an estate with 75+ other houses.  
I wondered if anybody could shed some light on how these filter down to the individual residential properties?  I hoping it's a mistake of some kind.  Either way, as it stands I can neither re-mortgage with a new lender or sell the house!!
Will call the builder (Bloor Homes) on Monday but any advice / experience before then would be greatly appreciated.
Thanks - David.

K_S

@DavyNix Can I ask how it came to light please. Were you told of the implications by your conveyancing solicitor at the time of purchase?

MWT

How did you find out about the clause and was it not mentioned during your original purchase?

Do you have a copy of the clause and does it appear on the Land Registry records for your property?

DavyNix

Hi, it’s just come to light as I’m trying to remortgage and the valuation/  land survey come back with it.

Its my 3rd remortgage and it’s never been noted before this point.  At first I thought this was because I’ve extended the property and triggered it.  But in reality it would have been there from day 1 surly?

I’ve looked at my deeds  (T1 document?) and can’t see any reference to it. So confused.

David.

MWT

Did your extension require planning consent or was it a permitted development?

DavyNix

MWT said:

Did your extension require planning consent or was it a permitted development?

So, on this estate, permitted development has been removed. So although the build was within the usual permitted development size, I had to apply for PC. Albeit free of charge.

K_S

DavyNix said:

Hi, it’s just come to light as I’m trying to remortgage and the valuation/  land survey come back with it.
Its my 3rd remortgage and it’s never been noted before this point.  At first I thought this was because I’ve extended the property and triggered it.  But in reality it would have been there from day 1 surly?
I’ve looked at my deeds  (T1 document?) and can’t see any reference to it. So confused.
David.

@DavyNix I don't know all the nuts and bolts of if but I would also assume that the clause was there all along and *should* have been spotted during either the conveyancing work on the purchase or one of the 3 remos (was it a proper remortgage with a different lender or simply a product transfer staying with the same one?) that you did prior to this.

DavyNix

All have been with different lenders. Is there a chance that this is a mistake and the solicitor has mis-read the deeds or not checked fine print?

Do you know if this would explicitly be worded as a ‘overage clause’ in the title deeds?

MWT

Have you seen a copy of the overage clause?

It can be passed down to you in several ways, but however it was passed, your legal advisors should have brought it to your attention at the time of your original purchase...

K_S

DavyNix said:

All have been with different lenders. Is there a chance that this is a mistake and the solicitor has mis-read the deeds or not checked fine print?
Do you know if this would explicitly be worded as a ‘overage clause’ in the title deeds?

 @DavyNix I'm afraid I don't know. I think it's an overaching term which covers a lot of different scenarios.

One of my ex-clients managed to get the developer to vary the clause, they had to make a negotiated one-off payment. I don't know if that may be a possibility in your case.

As to why it never came up, that is strange. In England, overage will generally be secured by a first charge on the land or a restriction on the title. Generally speaking, neither of those are going to be acceptable to a mainstream mortgage lender. But maybe your's is secured in a different way?

MWT

If it is not showing as a charge, it may be buried in the covenants or the contract of sale for example, but it should still have been spotted during the initial purchase process.

Knowing exactly what it says would be helpful of course...