Tenancy Agreement Advice

[Deepie]

Re: Tenancy Agreement Advice

A plot of land or house, is only worth what someone is willing to pay............

[PlanB]

Re: Tenancy Agreement Advice

Another offer this morning, He's upped it by 7k. Still 13k below asking price.

An asking price is an *asking* price not a valuation. Most buyers expect to pay below the asking price which is why agents tend to ask more than the property is worth to allow for room to manoeuvre.

A lot depends on the the sums involved. If you're asking one million pounds for this land then £13k less is neither here nor there. But if you're selling it for £20k then accepting £13k below that figure would be silly.

I think you should also keep your eye on the timing of all this. You've got these tenants signed up until next summer. Then you'll need replacement tenants which could be difficult if the garden becomes a noisy and messy building site. If you can't get tenants then you won't be banking any rent. Factor that into your thinking about any offer you get now. In other words if you're likely to lose £7k in rent you could consider that offer as only being £6k below the asking price in real terms. If you follow me.

Ideally you want the purchaser to get on with the intrusive project so with any luck it'll be finished by summer 2014 when these tolerant tenants move out.

[Miss Daffodil]

Re: Tenancy Agreement Advice

Good evening,

I have been in discussions today with xxxx
His solicitor refused to take more money from him today as until the earl of xxxxxxxxxxxx covenant is either lifted or insured against the plot can pretty much be considered as unsalable.

xxxxxxxx has also said with the insurance in place he may still look to reduce his offer as an insurance (only for 25 years) may affect the number of banks and building societies who would be willing to offer finance on the property therefore effecting the resale value once built.

xxxxxxxxxxxxx has apparently tried to contact xxxxxxxx several times with regards to this issue but isn’t really getting much of a response.

Are you able to look into this with xxxxxxxxx to see if this can be resolved?

Kind regards

How hard is it to get a covenant lifted ?

[PlanB]

Re: Tenancy Agreement Advice

That depends on what the covenant says.

I once had one which gave the local Lord of the Manor the right to shoot pheasants on my land. I managed to get it removed by consent (at a price) on the basis that unless he told me when he was likely to pitch up with a 12 bore shotgun I was at risk of being gunned down while hanging out the washing.



What does this covenant say and is the "Earl of XXXX" still alive to negotiate with?

[PlanB]

Re: Tenancy Agreement Advice

His solicitor refused to take more money from him today as until the earl of xxxxxxxxxxxx covenant is either lifted or insured against the plot can pretty much be considered as unsalable.

xxxxxxxx has also said with the insurance in place he may still look to reduce his offer as an insurance (only for 25 years) may affect the number of banks and building societies who would be willing to offer finance on the property therefore effecting the resale value once built.

xxxxxxxxxxxxx has apparently tried to contact xxxxxxxx several times with regards to this issue but isn’t really getting much of a response.

An indemnity insurance policy is the usual way to cure this problem depending on whether the covenant looks enforceable. For example I had another one (different property) which permitted my neighbour to cross my land to access a well for water. Many moons ago the well was filled in with tons of concrete so the covenant wasn't an issue i.e. not enforceable.

The important thing about applying for indemnity insurance is that it will be refused if you contact the person who benefits from the covenant; so if I were you I wouldn't call the "Earl of XXXX" until you know what the covenant actually "restricts" (if anything). That's explained here:

http://www.restrictivecovenants.co.u...nsurance.shtml

Mortgage lenders are used to all this stuff so please don't be spooked by any suggestion that your buyer won't get a loan.

I'm surprised to learn that your architect (or whoever submitted the planning application) didn't check this out first. A quick search of Land Registry would have flagged that up. You may have a claim against him if it's unresolvable and the land proves to be unsaleable (which I doubt).

Do you have a mortgage on your property? If you do then that suggests this covenant won't be a problem for any buyer of the land which is currently attached to your property.

[PlanB]

Re: Tenancy Agreement Advice

Me again

I've remembered another covenant which caused a friend temporary problems. It said that if the owner were to build a second property on the same plot (i.e. land) then the previous owner was entitled to a percentage of the uplift in value. This is a very common covenant.

[Miss Daffodil]

Re: Tenancy Agreement Advice

After talks with my solicitor the covenant says that no additional building on the land without consent of the xxxxxxxxx Estate.

This would be a breach of the covenant if the Estate owns any land within 500 yards of this covenant.

If the Estate did not own any land within 500 yards, the covenant would not apply.

It would not be a good idea to ask the Estate because if it turned out that they did, there would only be one choice and that would be to pay them whatever they asked for consent.

The buyers solicitors have found an insurance company that would be prepared to issue an indemnity policy if they are supplied with a copy of the planning permission and any objections received.

They have received them this morning so now just wait and see.

[PlanB]

Re: Tenancy Agreement Advice

the covenant says that no additional building on the land without consent of the xxxxxxxxx Estate.

This would be a breach of the covenant if the Estate owns any land within 500 yards of this covenant.

If the Estate did not own any land within 500 yards, the covenant would not apply.

It would not be a good idea to ask the Estate because if it turned out that they did, there would only be one choice and that would be to pay them whatever they asked for consent.

The buyers solicitors have found an insurance company that would be prepared to issue an indemnity policy if they are supplied with a copy of the planning permission and any objections received.

Have you done Land Registry searches for all the surrounding/adjacent properties/land? That would show you who owns anything within 500 yards of your boundary. You can download the PDFs for these for only £3 each here:

http://www.landregistry.gov.uk/publi...erty-ownership

Do you want to PM me details of the name of the estate so we can take a look at its significance? Some estates such as the Grosvenor Estate own most of Belgravia (London) and doing business with them is not cheap. Other estates belong to "Earls" who've been dead for years and their doolally descendants have no idea any of these old covenants even exist. You were given good advice not to contact the phantom "Earl" just yet

[PlanB]

Re: Tenancy Agreement Advice

The buyers solicitors have found an insurance company that would be prepared to issue an indemnity policy if they are supplied with a copy of the planning permission and any objections received.

This is very encouraging news

I wonder whether the lack of any objection from the phantom "Earl" means he could have missed the boat in legal terms When planning permission is applied for the local authority has a statutory obligation to "consult" neighbours. This is by letter and notices slapped on trees and telegraph poles. I don't know what the required radius of the notices is, but if it's 500 yards that could be handy

[Miss Daffodil]

Re: Tenancy Agreement Advice

Have you done Land Registry searches for all the surrounding/adjacent properties/land? That would show you who owns anything within 500 yards of your boundary. You can download the PDFs for these for only £3 each here:

http://www.landregistry.gov.uk/publi...erty-ownership

There could be has many as 150 properties That money may as well be used for an indemnity policy.

Plus It will only provide details of land and properties that are registered.

This is very encouraging news

I wonder whether the lack of any objection from the phantom "Earl" means he could have missed the boat in legal terms When planning permission is applied for the local authority has a statutory obligation to "consult" neighbours. This is by letter and notices slapped on trees and telegraph poles. I don't know what the required radius of the notices is, but if it's 500 yards that could be handy

It was a nightmare obtaining planning permission.

[PlanB]

Re: Tenancy Agreement Advice

There could be has many as 150 properties .

150 properties within 500 yards? Is this plot of land in Mumbai or something

[PlanB]

Re: Tenancy Agreement Advice

The OP has PMd me the name of the "Earl". I'm going to research his current visibility to see if this Earl is broke in case there is a need to negotiate. A quick check says the 5th Earl of XXXX is alive. He was educated at Eton (no kidding) and then went to the University of East Anglia (formerly known as Norwich Polytechnic) which must have been a disappointment to his family

He is currently a fellow of the British Interplanetary Society which is a bit of a worry

[Miss Daffodil]

Re: Tenancy Agreement Advice

Received Transfer of part of registered title for signing today.

Indemnity insurance policy in place £200 didn't think that was bad.