Deed of Variation - Freehold

Mik_j

I am in the process of selling my house but my buyers solicitors have dragged it out to the point my mortgage offer expires in a week. I have a freehold with a management charge but my buyers solicitors are insisting I pay for a deed of variation. She is a cash buyer but they are arguing she needs it in case she sells the house on to someone with a mortgage. Both they and my estate agent say I have to pay for it but my solicitor says no as the benefit rests with the buyer. I have told my solicitor that the cost of me losing my mortgage is greater than a deed of variation but they are not responding and I’m running out of time. Any views appreciated.

user1977

What do they want varied?

Mik_j

user1977 said:

What do they want varied?

Apparently it’s the management charge. I think under the 1925 property act failure to pay the management charge can instigate a rent lease without notice. She has no mortgage but apparently wants it in case she sells the house on to someone with a mortgage.

loubel

If you are happy to pay for the Deed of Variation then I'm not sure what the issue is? You won't be completing within a week though as it will likely take several weeks to sort. When was this raised and why hasn't your solicitor actioned your instruction to proceed?

Mik_j

loubel said:

If you are happy to pay for the Deed of Variation then I'm not sure what the issue is? You won't be completing within a week though as it will likely take several weeks to sort. When was this raised and why hasn't your solicitor actioned your instruction to proceed?

My solicitor apparently refused it on my behalf without my knowledge saying it wasn’t my obligation. I only found out about it Friday last week and got the bombshell that I had to pay dropped today with a week to spare. My mortgage adviser has asked for an extension but my solicitors are waiting for this as I’ve told them I will pull the plug if I can’t get an extension. The solicitors have dragged it out between them and put me at this point.

eddddy

Just to clarify - has the freeholder/management company agreed to the deed of variation?  And if they have, are all parties happy with the wording, etc?

Have all 3 solicitors suggested that they can get the deed of variation sorted within a week?

TBH, if nobody has agreed to pay the freeholder's / management company's legal bill, I doubt their solicitor has done any work at all on this yet.

Unless perhaps the freeholder / management company has done similar deeds for other house owners before, and so they have a template they can use.


This will require the involvement of all 3 solicitors, one of whom will have to draft the deed - so I guess the total costs could be £1.5k or more.

chanz4

I sold my freehold house in june, it had a stelth management fee. The new buyer just had to enter into a transfer of covenant

eddddy

chanz4 said:

I sold my freehold house in june, it had a stelth management fee. The new buyer just had to enter into a transfer of covenant

I think the OP's problem is that their buyer doesn't like one of the terms in the transfer deed, and wants it changed.

And the OP says there are arguments about who should pay the solicitor's fees for changing it.

(That assumes that everyone has agreed to it being changed. If everyone hasn't agreed yet, that's the first problem to deal with.)