Deed of Variation/Flying Freehold

emmaclblackburn

Could someone please advise, I have been in the throes of purchasing a flat which has a flying freehold under part of a bedroom.  We raised this matter with the vendor who assured us this would not be a problem.  We therefore paid a refundable deposit to secure. Our solicitor brought this to the attention of the developer in August of this year, they have been trying to source an Indemnity or A deed of variation ever since.  Subsequently they returned saying this was not possible. Today when we said we would pull out they have now announced they can get a deed of variation but they want another 30,000 pounds to do so. How can this be fair and we are left with vast solicitors fees. Please advise.

user1977

Is this a newbuild? I don't understand the reference to both a developer and a deposit otherwise - but if it is a newbuild it seems odd to have a flying freehold issue.

What's your solicitor's advice? Please tell us it isn't a solicitor "recommended" by the vendor...

emmaclblackburn

It is a newly developed flat in an old building. Have just spoken to our solicitor who is independent and also an old friend and he advises us to just move on. It is just annoying to say the very least as they could obviously obtain this document and have allowed us to incur charges, yes an old friend but still a solicitor! then seem to be holding us to ransom over 30,000 pounds extra!! over an issue they needed to put into place prior to marketing.

eddddy

emmaclblackburn said:

It is a newly developed flat in an old building. 

Based on what you've posted, my guess is that this is the situation:

• The building with your flat in has a flying freehold over another building - but there is no "right of support" and/or "right of access for maintenance".

• So the owner of the other building could demolish the part of the building that's under your bedroom.

• So your developer is asking the neighbouring building owner to sign a deed "promising" not to demolish that part of the building

• The neighbouring building owner has said they will sign the deed in return for a payment of £30k

Your developer is being a bit cheeky asking you to pay that £30k - they're probably taking a bit of a punt to see how you react.

Probably the best reaction is to say that your original offer stands - you won't increase it by £30k or by any other amount. Because it's the developer's problem not yours, and they probably won't be able to sell their flats unless they get that deed signed.

emmaclblackburn

The developer is saying that if he re-markets the flat he will be re-marketing it at 30,000 pounds more because this issue has rumbled on, through their ineptitude for nearly a year so therefore the value of said property has increased. This is not for the deed of valuation.

eddddy

emmaclblackburn said:

The developer is saying that if he re-markets the flat he will be re-marketing it at 30,000 pounds more because this issue has rumbled on, through their ineptitude for nearly a year so therefore the value of said property has increased. This is not for the deed of valuation.

OK - so the deed of variation isn't the core of the problem.

Essentially, your complaint is that they accepted your offer - but they have now decided to ask for £30k more.


So your solicitor and your solicitor friend were just commenting on the developer's poor behaviour, rather than giving you legal advice. 

So it's really just boils down to a subjective decision on your part -

- Do you want to do business with a developer who behaves like that?
- Is the flat worth £30k more?
- Can they really sell it to somebody else for £30k more?
- If you say you're walking away, would they lower the price back down (partially or fully)?