Right-To-Buy 5 Years up and yet cannot get Equity - Restriction Question

Land_Registry

daryladvice said:

Land_Registry said:

housebuyer143 said:

@Land_Registry can you help?

To some extent but remember we register outcomes so are not always privy to the legal/conveyancing perplexities involved
From a purely registration perspective the wording of the restriction is key. It states no transfer or lease so if you are trying to do one of those then it bites. 

As for you trying to cancel it then you’d need to apply and provide supporting evidence to back up the cancellation. That’s where your legal advice clicks in. 

Any application to withdraw would be by the restriction’s beneficiary.And any application to cancel would invariably involve our contacting them so the ‘accompanied by’ is also important. 

To understand what’s possible you need to consider the terms of the discount purchase and how the interest protected by the restriction came about. And crucially how it ends. 

Hi there, thanks for the reply.

Equity really was to just release a small portion of the property price. It's valued at around £190,000 and the equity is £28,000. There is no wish to sell or give up the property, it is just to raise some funds in and out of the house price now that 5 years have passed. The wish is to remain in complete ownership of the property, with no change to this.

I was wondering if removing the next 5 years of restriction was possible without any form of implications for doing so and if that is even possible?

Could you tell me more about this, please? "And any application to cancel would invariably involve our contacting them so the ‘accompanied by’ is also important" Does this mean you are able to contact them and enforce a possible removal of restriction?

I was under the impression that the discount only applied for the first 5 years, which has now elapsed since January this year. I am finding it hard to understand why the previous council have any say so on a property that is now fully bought outright.

If you could advise further on this that would be much appreciated, thank you.

We don’t enforce such matters. You can apply to cancel it or the council apply to withdraw it. However neither seem likely to happen as the grounds for doing so don’t exist - check the terms of your original discount purchase to confirm/clarify how you are restricted. 

If you want to understand what you can do re cancellation or withdrawal of the restriction then it’s legal advice you need for clarity of understanding 

The real issue appears to be as already explained/posted in that the restriction, and presumably terms as mentioned, restrict you from transferring or leasing the property, if you are doing neither the restriction doesn’t apply so that’s the discussion to be had with whoever you are dealing with 

peterhjohnson

Releasing equity so I remain the legal registered owner, no change to this. Just releasing a partial amount from the property value, I mentioned in a reply above, the property is worth £190,000 equity would be £28,000.

What "releasing equity" really means is that you are borrowing money. And if you don't repay, the lender gets to sell the house. Except, in this case, the lender can't sell the house because of the restriction. So the lender would have no security so they are saying "no way"