Overage Clause on New build - help!!

DavyNix

K_S said:

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?

The only strange quirk I’m aware of was that I had to seek their approval before making any changes to the exterior of the house. Was just a letter of consent which they charged £100 “admin fee” for.

I’ll chase them Monday.

DavyNix

MWT said:

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...

No not seen the clause myself and see no sign of it in my documentation. 

Lender has suggested I call their solicitor and ask them to point it out to me! Will try to make that happened on Monday when they open.

DavyNix

Ok I’ve found this which with my little knowledge reads like it could possibly have something to do with this topic (12.4).  Any ideas?

MWT

I'd be looking closer at 12.5 rather than 12.4...

In particular the 'Standard Estate Covenants'

You may also see 'overage' described as 'uplift' or 'claw back'

deminimis

Unless the overage was registered against the title before your purchase or you agreed to it in the sale contract or transfer documents, it shouldn't bind you. 
Either way, if it is a genuine issue then it is something you should have been warned about by your solicitor on the original purchase.
Why don't you contact them and ask? 

ToxicWomble

Bloor seem quite keen on restrictive covenants. (Other builders may be the same)

We weren’t permitted to change the colour of our front door, park works vehicles on the estate or have boats/caravans/trailer on driveways for a set period

davidmcn

DavyNix said:

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

It would be something raised by the solicitors rather than the surveyors, are you sure somebody hasn't just got the wrong end of the stick? What exactly have you been told? 

DavyNix

davidmcn said:

DavyNix said:

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

It would be something raised by the solicitors rather than the surveyors, are you sure somebody hasn't just got the wrong end of the stick? What exactly have you been told? 

Yes you’re right, when I spoke to Nat West they said they term both process as the “valuation”.

I’ve been told the mortgage can not progress due to an “Overage Clause” on my deeds which they (Nat West) can’t accept.

I’ve read through them 3 or times and can’t see any evidence of such a clause.

DavyNix

ToxicWomble said:

Bloor seem quite keen on restrictive covenants. (Other builders may be the same)

We weren’t permitted to change the colour of our front door, park works vehicles on the estate or have boats/caravans/trailer on driveways for a set period

Same here, standard for Bloor I think. The closest I can find to anything concerning planning is that I have to also ask their permission as well as local
authorities before building... which I did.

The more I read and consider, the more I think this has been a mistake.

K_S

@DavyNix You must have appointed a conveyancer for the remortgage (who in most cases acts for both the buyer and lender). Have you asked them to point out the offending clause?

Or, if you're using a broker, ask them to try get a clear answer from their NatWest BDM.