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All - looking for some advice please
We accepted an offer on our property at the end of November
In January we located a house we would like to buy and had our offer accepted (house located on an estate/cul de sac with 7 other properties). Our buyer has so far remained very patient with us.
Mortgage agreed and solicitors now working on finalising the deals
However received a call from our solicitor advising there is an issue in that there is a covenant on the deeds of the house we would like to buy stating that the house is to be used for private dwelling only. Our intention was to run a child-minding business from the property. I expect the covenant at the time (30 years ago) was included to deter industry/larger businesses from the estate as opposed to the more popular recent trend of people who can and want to work from home.
Unfortunately there are no other available properties in the village suitable for our child-minding business needs
Solicitor is suggesting he approaches the holder of the covenant (the builder from 30 years ago) to see if they will remove the covenant from the transfer by way of a deed.
This service would be outside the remit of a standard conveyancing transaction as it would incur additional work on an hourly basis (£170 per hour plus vat)
I have asked the solicitor to advise the following
1/ likelihood from his Conveyancing experience the builder agreeing to remove/amend the deed
2/ an estimate of the number of additional hours involved
3/ would he be prepared to take the work forward on a fixed rate basis rather than an hourly basis, if so what his fixed rate would be
I need to consider also that the bank has partly lent money on the back of the profits from the child-minding business and I have given the bank our assurances that the business will continue to help pay back the mortgate
There is minimal information about the builder on the internet although they are still registered at Companies House (no website/email address etc)
I don’t know for sure but I believe they are no longer in operation – how may this affect the issue?
For information there is already another child-minder and an airport taxi company who live and work from the estate – not sure how they managed to get around the issue or whether they simply ignored it
Would welcome any ideas on how best to deal with the situation as we are very keen to still purchase the property but not break any rules
Thanks
Paul
We accepted an offer on our property at the end of November
In January we located a house we would like to buy and had our offer accepted (house located on an estate/cul de sac with 7 other properties). Our buyer has so far remained very patient with us.
Mortgage agreed and solicitors now working on finalising the deals
However received a call from our solicitor advising there is an issue in that there is a covenant on the deeds of the house we would like to buy stating that the house is to be used for private dwelling only. Our intention was to run a child-minding business from the property. I expect the covenant at the time (30 years ago) was included to deter industry/larger businesses from the estate as opposed to the more popular recent trend of people who can and want to work from home.
Unfortunately there are no other available properties in the village suitable for our child-minding business needs
Solicitor is suggesting he approaches the holder of the covenant (the builder from 30 years ago) to see if they will remove the covenant from the transfer by way of a deed.
This service would be outside the remit of a standard conveyancing transaction as it would incur additional work on an hourly basis (£170 per hour plus vat)
I have asked the solicitor to advise the following
1/ likelihood from his Conveyancing experience the builder agreeing to remove/amend the deed
2/ an estimate of the number of additional hours involved
3/ would he be prepared to take the work forward on a fixed rate basis rather than an hourly basis, if so what his fixed rate would be
I need to consider also that the bank has partly lent money on the back of the profits from the child-minding business and I have given the bank our assurances that the business will continue to help pay back the mortgate
There is minimal information about the builder on the internet although they are still registered at Companies House (no website/email address etc)
I don’t know for sure but I believe they are no longer in operation – how may this affect the issue?
For information there is already another child-minder and an airport taxi company who live and work from the estate – not sure how they managed to get around the issue or whether they simply ignored it
Would welcome any ideas on how best to deal with the situation as we are very keen to still purchase the property but not break any rules
Thanks
Paul
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