Overage Clause on New build - help!!

unforeseen

It would be better to ask Natwest as they are the ones that appear to be able to see it. 

davidmcn

DavyNix said:

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.

If they're that loose with terminology then I suspect it's just been lost in translation by somebody at the natwest who is neither a solicitor or surveyor. Perhaps there is some sort of problem, but I very much doubt it's an overage clause. 

DavyNix

@K_S , @MWT , All
Thought I'd post an update. Heard back from their solicitor today after a lot of chasing.  He supplied me with a TP1 register document as signed by the property developer Bloor, when they purchased the land in it's entirety.  Within this is reference to overage clause. 

This is obviously not the TP1 I signed for my small plot on this estate neither does it contain any text regarding the overage clause.  On one hand I'm worried as I don't know which document supersedes the other, or whether there is text in my registry doc that somehow references the original document and passes it down. 

On the other hand, I know he hasn't looked at my documentation as part of this process and so am not sure how he could make that call, and thus I still think there's mistake that's been made here.

Image is from the original land registry doc from the entire estate.
 David.

Robin9

I always thought that "Overage" could only apply once . eg a builder buys agricultural land for £100k , get building permission which increases it to £1m  - then Overage kicks in and the builder pays the original owner 20% (or whatever) of £900k.

It doesn't kick in a second time when he builds and all the houses together are worth £2m does it ? - so why should it kick in a 3rd time when the house owner increases the value of his house from£475k to £500k when he builds an extension which might cost more than the increase in value of the house ;;   nor does it kick whenever the house is eventually sold.

MWT

I would check the definition of 'Permitted Disposal' and the duration of the 'Overage Period'...

K_S

DavyNix said:

@K_S , @MWT , All
Thought I'd post an update. Heard back from their solicitor today after a lot of chasing.  He supplied me with a TP1 register document as signed by the property developer Bloor, when they purchased the land in it's entirety.  Within this is reference to overage clause. 
This is obviously not the TP1 I signed for my small plot on this estate neither does it contain any text regarding the overage clause.  On one hand I'm worried as I don't know which document supersedes the other, or whether there is text in my registry doc that somehow references the original document and passes it down. 
On the other hand, I know he hasn't looked at my documentation as part of this process and so am not sure how he could make that call, and thus I still think there's mistake that's been made here.
Image is from the original land registry doc from the entire estate.
 David.

@DavyNix Thanks for the update and glad to see that you've got a clearer answer from the solicitor. To me it looks like there is a restriction written into the title register of your house which refers back to the actual Overage clause. And it's been there since you bought the property.

What I can't understand is how is it that the conveyancer/lender at the time of purchase in 2015 or later Atom bank at remortgage in 2018 had no issue with this restriction but the current one does.

MWT

The reason I suggest looking at the definition of 'Permitted Disposal' is that I have seem similar wording in the past on land purchased for residential housing development where the transfers relating to individual houses were 'Permitted' and did not inherit the overage clause, but sale of larger parcels of land to another developer, for example, required the overage clause to be passed on... ...

DavyNix

MWT said:

The reason I suggest looking at the definition of 'Permitted Disposal' is that I have seem similar wording in the past on land purchased for residential housing development where the transfers relating to individual houses were 'Permitted' and did not inherit the overage clause, but sale of larger parcels of land to another developer, for example, required the overage clause to be passed on... ...

I think you're spot on.  Had this response from Bloor Homes:

“Dear Mr Nicholls,

I apologise for the delay in responding to you.

I have heard back from our Solicitors today who have confirmed the below regarding the Overage Agreement –

‘The provisions referred to do not apply as the property was dealt with as a Permitted Disposal at the original point of sale.  This is clearly defined within the Transfer.

The restriction as it currently stands can be dealt with by “a conveyancer” so the homeowners’ conveyancer could provide a certificate themselves saying that the provisions do not apply.

 In respect of holding up a re-mortgage, it is not clear why this would be the case as this can be dealt with by the homeowners’ conveyancer directly.’

I hope if you forward the above to your Solicitor this resolves the issue. If you have any further queries, please let me know.

Kind Regards

Charlotte Butcher
Design and Technical Secretary

MWT

Good, glad it turned out to be a simple solution.

So frustrating to be delayed just because someone didn't bother to read the whole thing though, legal documents use defined terms for a reason

K_S

DavyNix said:

MWT said:

The reason I suggest looking at the definition of 'Permitted Disposal' is that I have seem similar wording in the past on land purchased for residential housing development where the transfers relating to individual houses were 'Permitted' and did not inherit the overage clause, but sale of larger parcels of land to another developer, for example, required the overage clause to be passed on... ...

I think you're spot on.  Had this response from Bloor Homes:
“Dear Mr Nicholls,

I apologise for the delay in responding to you.

I have heard back from our Solicitors today who have confirmed the below regarding the Overage Agreement –

‘The provisions referred to do not apply as the property was dealt with as a Permitted Disposal at the original point of sale.  This is clearly defined within the Transfer.

The restriction as it currently stands can be dealt with by “a conveyancer” so the homeowners’ conveyancer could provide a certificate themselves saying that the provisions do not apply.

 In respect of holding up a re-mortgage, it is not clear why this would be the case as this can be dealt with by the homeowners’ conveyancer directly.’

I hope if you forward the above to your Solicitor this resolves the issue. If you have any further queries, please let me know.

Kind Regards

Charlotte Butcher
Design and Technical Secretary

@Davynix Glad to see that it looks like an error on the part of the solicitor rather than anything else and thanks for updating.