Purchasing freehold of 2 Flats -restrictive covenants on TP1

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    Purchasing freehold of 2 Flats -restrictive covenants on TP1

    Hi,

    A London road made up of 2 storey purpose built maisonettes. I and the owner of the falt below mine are purchasing the freehold from the freeholder. The current freeholder still owns the majority of the freeholds on the road, hence were attempting to buy a freehold that is surrounded by freeholds that they own.

    Notice has been served, price has almost been agreed and there is a tribunal hearing set for this week, should all matters not be resolved.

    The issue I have is that the freeholder wants to add restrictive covenants to the TP1 and my solicitor and I arent aware of any part of the act that lawfully entitles them to do so. Hence im not sure if it is worth going to the tribunal (and incurring the costs) to dispute the covenants.

    The main restrctions that seem unreasonable are

    1) Not to use or permit or suffer the use of the parts of the property intended for letting as individual flats otherwise as self contained residential flats each in the occupation of one family or household.

    2) Not to use or permit or suffer the throwing of dirt,rubbish,refuse or any other item out of the windows and not to use or permit or suffer the hanging or displaying of clothing or other articles so as to be visible from outside the property.

    & One of the rights reserved for the benefit of the land is

    1) the right to carry out works and constuctions upon (including th erection of addional buildings) or to alter or rebuild any of the buildings now or in the futute erected on the retained land including the erection of scaffolding on the Propertyand the right to use the retained land as it sees fit notwithstanding that the access of light and air to the proprty may thereby be diminished.


    If anybody has any experience with this area of the Act or can offer a view on the situation, it would be appreciated.

    Many Thanks

    #2
    Why don't you tell your solicitor say NO to additions as there is no provision for an outgoing freeholder to impose additional covenants under the Act.

    Basically you want to buy the existing clear freehold title of your building without any adding new covenants.

    Comment


      #3
      Originally posted by Gordon999 View Post
      Why don't you tell your solicitor say NO to additions as there is no provision for an outgoing freeholder to impose additional covenants under the Act.

      Basically you want to buy the existing clear freehold title of your building without any adding new covenants.
      Or say , without prejuduice, ok the price goes down though...
      Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

      Comment


        #4
        Originally posted by Gordon999 View Post
        Why don't you tell your solicitor say NO to additions as there is no provision for an outgoing freeholder to impose additional covenants under the Act.
        Wrong. There is; but only if it materially enhances the value of V's retained land. The rules on this are very like s.10 of the Leasehold Reform Act 1967 [re houses]; but, for flats, see paragraph 5 of Schedule 7 to the 1993 Act:

        5(1). As regards restrictive covenants, the conveyance shall include:
        (a) such provisions (if any) as the freeholder may require to secure that the nominee purchaser is bound by, or to indemnify the freeholder against breaches of, restrictive covenants which:
        (i) affect the relevant premises otherwise than by virtue of any lease subject to which the relevant premises are to be acquired or any agreement collateral to any such lease, and
        (ii) are immediately before the appropriate time enforceable for the benefit of other property; and
        (b) such provisions (if any) as the freeholder or the nominee purchaser may require to secure the continuance (with suitable adaptations) of restrictions arising by virtue of any such lease or collateral agreement as is mentioned in paragraph (a)(i), being either:
        (i) restrictions affecting the relevant premises which are capable of benefiting other property and (if enforceable only by the freeholder) are such as materially to enhance the value of the other property, or
        (ii) restrictions affecting other property which are such as materially to enhance the value of the relevant premises; and
        (c) such further restrictions as the freeholder may require to restrict the use of the relevant premises in a way which:
        (i) will not interfere with the reasonable enjoyment of those premises as they have been enjoyed during the currency of the leases subject to which they are to be acquired, but
        (ii) will materially enhance the value of other property in which the freeholder has an interest at the relevant date.

        (2) In this paragraph “restrictive covenant” means a covenant or agreement restrictive of the user of any land or building.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment

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