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Conveyancing
Comments
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Thank you for this advice. It’s very helpful. I was wondering if potentially I were to go with another lender could I apply to have the deed of variation issue fixed after completion (in anticipation of a future sale) ?
Also how much trouble/effort/time/cost is involved in getting the deed of variation sorted?the sellers solicitor has been dismissing it as a problem and saying it is a non issue, so he is going to have to start from scratch. The sellers are expected to give a date of completion in a couple of weeks otherwise the new build they have signed up for will be put back on the market.
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Blotto17 said:Thank you for this advice. It’s very helpful. I was wondering if potentially I were to go with another lender could I apply to have the deed of variation issue fixed after completion (in anticipation of a future sale) ?
Also how much trouble/effort/time/cost is involved in getting the deed of variation sorted?the sellers solicitor has been dismissing it as a problem and saying it is a non issue, so he is going to have to start from scratch. The sellers are expected to give a date of completion in a couple of weeks otherwise the new build they have signed up for will be put back on the market.The owner of the rent charge may not be prepared to give a deed of variation, at all. Or, they may require an excessive amount for doing so.Really, your sellers should have anticipated this issue, and they may actually have done so. I suspect that, if it were quick and cheap to get a DOV, they would have done it already. So, assume it’s going to cost megabucks.You can’t buy this property without the DOV, and the sooner the sellers come to terms with this the sooner they can get on with getting it sorted. Perhaps even in time to save their onward purchase! If they try to sell to someone else, they will definitely lose their onward purchase, and the new buyer is likely to have exactly the same problem with the rent charge.No reliance should be placed on the above! Absolutely none, do you hear?1 -
So if the the owner of the rent charge does not want to give a DOV at all then the house is unsellable? They’re stuck there forever?0
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Blotto17 said:So if the the owner of the rent charge does not want to give a DOV at all then the house is unsellable? They’re stuck there forever?As long as you keep up payments to the management company, the rent charge is no problem at all. So, the house should be saleable to someone who is an all cash purchaser, who then pays every bill punctiliously. Of course, there are not many all cash purchasers around, so the price will have to be lower than the usual market value.The problem for lenders is that they are not in the loop. If there’s a missed payment the management company can take action under the rent charge that destroys the house value. And they can do that without the lender knowing about it.What most lenders want is simply to be told in advance of such draconian action being taken by the management company. The lender will then pay the bill and add it to the loan. And that’s what the DOV is for.No reliance should be placed on the above! Absolutely none, do you hear?1
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This link explains the problem.
https://www.blbsolicitors.co.uk/blog/buying-a-house-with-a-rentcharge/
No reliance should be placed on the above! Absolutely none, do you hear?1 -
I just can’t believe it’s been over four months since offer accepted and all parties are not agreed on the importance of this issue and how we cannot move forward with it in the way.
How come it did not come up when the current owners were buying the property only a few years ago?If the issue was fixed with a deed of variation - is that it? Problem solved? Or could there be some other problems that would arise with this type of property in the future?0 -
Speak to your solicitor, but the DOV should fix the issue. Really, government should amend the rent charge legislation.Obviously, I can’t say whether there’s anything else wrong. It’s not built on a floodplain is it? On top of a coal mine or a rubbish dump? On a polluted site? Some construction issue? Motorway or airport planning in progress?No reliance should be placed on the above! Absolutely none, do you hear?1
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No, none of those things. In terms of problems arising in the future I meant after the deed of variation is done. Is that it? Is there any other grey areas with that specific problem of the maintenance charge?I’m still puzzled because there are other houses in that estate. At least two or three are bought and sold every year. They all pay the same maintenance charge. I’m wondering how did they do it. I’m assuming they got a more relaxed lender or were successful with a DoV.Thanks again for your help.0
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If it’s easy to do a DOV, you have to wonder why your seller doesn’t want to do it.No reliance should be placed on the above! Absolutely none, do you hear?1
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Is it easy though?0
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