Are we over-reacting - would you buy this house?

[CXRAndy]

Buy it with the condition that it's removed.

If it's a great house, perfect location it's only a small condition to have removed.

On the other hand if it's not perfect location or requires massive investment. Walk away

 

[rogerzilla]

Buy it with the condition that it's removed.

If it's a great house, perfect location it's only a small condition to have removed.

On the other hand if it's not perfect location or requires massive investment. Walk away

The problem is that it almost certainly can't be removed. Only the three beneficiaries of the overage agreement can agree to this, they sold it in 2017, and they are unlikely to care whether the current owners have trouble selling it. They just want the (very slight) prospect of an unearned windfall.

 

[Beebo]

The problem is that it almost certainly can't be removed. Only the three beneficiaries of the overage agreement can agree to this, they sold it in 2017, and they are unlikely to care whether the current owners have trouble selling it. They just want the (very slight) prospect of an unearned windfall.

I suspect you could buy them out, and knock the cost off the asking price? How much is it worth to them now as opposed to a potential windfall in the future.
But would the seller accept that?

 

[rogerzilla]

I suspect you could buy them out, and knock the cost off the asking price? How much is it worth to them now as opposed to a potential windfall in the future.
But would the seller accept that?

It could be possible but I think we're out of time with our sales. Seeing five over the next two days, all chain-free or with sellers who are willing to go into rented*. The three which are truly chain-free are extremely promising.

*although this may be harder than they think

 

[CXRAndy]

It could be possible but I think we're out of time with our sales. Seeing five over the next two days, all chain-free or with sellers who are willing to go into rented*. The three which are truly chain-free are extremely promising.

*although this may be harder than they think

People with a wad of cash from a house sale will have no problems renting.

 

[Ridgeway]

It’s actually not your problem, but it is the problem of the current seller and now that he is aware and so are probably some agents, solicitors etc i guess it’s up to those sellers to solve it $$$

It was their mistake buying it with those conditions attached to it and now they can’t sell it without declaring them…..

They can pay cash to the 3 family members with proceeds from the house sale. In theory he can seek recompense from his incompetent solicitor from his 2017 purchase.

 

[Gunk]

People with a wad of cash from a house sale will have no problems renting.

Unless they have a couple of dogs

 

[newts]

I'd be chasing the vendor/agent for recompense, it is fraudulent. If the holders of the covenant aren't contactable, would the sale of this property ever be legally completed?

 

[bikingdad90]

I come across these in my line of work. You need to understand the agreement in full and make an informed decision.

Overage agreements usually contain a clause that the landowner is entitled to take ownership of the land back in the event that the overage is not paid. It is intended for them to benefit from any uplift in value or development on the land, 2 bites of the cherry so to speak.

You are right to be concerned as most banks will not offer mortgages with overages on the land as they want first charge.

It might be a low risk issue, if the cash sale to you doesn’t trigger the overage payment and you have no intention of developing the land or reselling down the line, if neither would trigger the overage, then there is probably nothing due but the charge/covenant endures until removed.

If you however intend to eventually do something that triggers the overage you may wish to consider asking for it to be removed (which usually comes at a cost).

There should be a legal document that contains the terms of the overage and the conditions etc.

 

[Beebo]

I come across these in my line of work. You need to understand the agreement in full and make an informed decision.

Overage agreements usually contain a clause that the landowner is entitled to take ownership of the land back in the event that the overage is not paid. It is intended for them to benefit from any uplift in value or development on the land, 2 bites of the cherry so to speak.

You are right to be concerned as most banks will not offer mortgages with overages on the land as they want first charge.

It might be a low risk issue, if the cash sale to you doesn’t trigger the overage payment and you have no intention of developing the land or reselling down the line, if neither would trigger the overage, then there is probably nothing due but the charge/covenant endures until removed.

If you however intend to eventually do something that triggers the overage you may wish to consider asking for it to be removed (which usually comes at a cost).

There should be a legal document that contains the terms of the overage and the conditions etc.

2052 is a very long way off.
I would take the risk if was 2030.

 

[slowmotion]

There are lots of wonderful houses out there. This is not one of them. Just forget about it and look elsewhere.

 

[rogerzilla]

I come across these in my line of work. You need to understand the agreement in full and make an informed decision.

Overage agreements usually contain a clause that the landowner is entitled to take ownership of the land back in the event that the overage is not paid. It is intended for them to benefit from any uplift in value or development on the land, 2 bites of the cherry so to speak.

You are right to be concerned as most banks will not offer mortgages with overages on the land as they want first charge.

It might be a low risk issue, if the cash sale to you doesn’t trigger the overage payment and you have no intention of developing the land or reselling down the line, if neither would trigger the overage, then there is probably nothing due but the charge/covenant endures until removed.

If you however intend to eventually do something that triggers the overage you may wish to consider asking for it to be removed (which usually comes at a cost).

There should be a legal document that contains the terms of the overage and the conditions etc.

This has been done differently. Thete's no charge on the house but there is a restrictive covenant so it can't be sold without permission from the beneficiaries of the overage agreement (totally unacceptable to.us). The way this works is that they will withhold permission unless any new buyer has personally signed up to their overage agreement. The current owners were foolish to agree to it, as they were the first to be bound by the restriction and overage agreement.

 

[alicat]

Unless you can get the covenant removed before you buy (the current owner has to deal with the headache not you), you will face the same hassle when future buyers pull out/ want a suitable discount/want you to get the clause removed.

 

[simongt]

were surprised to find almost everyone lied at some point.

Of course the catch being that even if you KNOW someone has lied, being able to prove it.

 

[Profpointy]

Does this mean the people giving or withholding permission to sell might demand, say 50% of the selling price?

How is it that the current owners are able to sell to you? Or is the point that the current owners are trying to sell without such permission potentially leaving you in the shoot