SMF - Just Installed!

Multi-let ex-council property with Restriction of Covenant

Started by debsirn, October 04, 2014, 06:34:01 PM

Previous topic - Next topic

debsirn

Hello,

I am in a process of purchase an ex-council property with aim to rent it out as multilet. The vendor purchased this property from council about 14 years ago.  The TP1 document receive from solicitor shows the following clause in the Third Schedule " Not carry out any trade business or profession in or upon the property or any part thereof but at all times to use the Property as a Private residence in single family occupation PROVIDED THAT this covenant shall not prohibit the use of the Property as the professional residence of a solicitor architect medical practitioner or dentist"

It also state that " The transferee to the intent that thus covenant may so far as possible bind all persons who are now or hereafter shall become entitled to any part of the property but not so as to bind the transferee or any such persons after he or they shall have parted with all estate and interest in the property hereby covenant with the transferor and its successor in title  for the benefit and protection of the adjoining and neighboring land of the transferor that he the transferee and the person deriving title under him will henceforth duly perform and observe the covenant conditions and stipulations contained in the Third Schedule hereto"

The solicitor doesn't point out any issue but she probably is not aware that I plan to rent it out as multi-let. I will ask for her advice on Monday but would like to know general idea about this restriction and if there is any solution to remove this clause and at what cost? Any advice is very welcome.

Kr
Debsirn

boboff

You need to ask the council to remove it.

They will not want too.

You will have to jump through, planning, building regs, and other fire safety hurdles.

Or you could keep quiet and hope it never comes up as an issue, as councils can be extremely poor in managing these things.

You main worry would be a complaint from a neighbor.

RickC

The law is pretty clear and there is no reason for the local authority to remove it, they would weigh up the benefit of providing more than one home vs the reasons they created the clause in the first place.  You can always call them and if you can get through to the right person might be able to get an idea of their position on this.

You could ask the vendor and you could go look at the other properties in the area to see if they have done something similar.

You will not be able to hide it for long

boboff