As firm of Estate Agents with surveying and legal expertise, we are all too familiar with the main pitfalls involved in buying and selling homes and we pride ourselves on being able to help vendors and purchasers resolve these problems.
Our team of Chartered Surveyors regularly conduct Homebuyer Reports, and they know what to look out for! There are, of course, the usual defects and maintenance issues such as water ingress, condensation, ground movement due to tree roots and shrinkable clay soils, beetle infestation…the list goes on. However, what are some of the lesser-known problems that many people are probably not so aware of, but that could still potentially cause house sales to fall through?
We’ve got the low-down from our surveyors and can share a few of these with you below:
RESTRICTIVE COVENANTS
Whilst you may own your property, it doesn’t necessarily allow you cart-blanch on what you can do with it or in it! Many properties have what are known as restrictive covenants. A restrictive covenant is an agreement that limits the way you can use your property. For instance, a covenant can prohibit you from using the property for anything other than residential purposes, such as running a business or renting it out to tenants. It is the responsibility of conveyancers (or legal advisers) to bring such covenants to your attention during the buying process.
If your home is located in a posh private estate, it is possible that the covenant may ban aesthetically unpleasant additions such as satellite dishes, garish colours on outside walls, and caravans parked in the drive. These covenants are put in place to maintain the appearance and value of the properties within the estate. It is important to note that covenants are binding and will pass on automatically to future owners.
If you have breached a restrictive covenant and no one complains or you were not aware of the restriction, you may be able to get indemnity insurance. This type of insurance provides protection against any financial loss resulting from the breach of the covenant. If you decide to sell your property, you can transfer this insurance policy to the future owner.
It is crucial to have a clear understanding of the restrictive covenants that apply to your property. This will help you avoid any potential issues and ensure that you are able to make the most of your property in accordance with the restrictions in place.
CHANCEL REPAIRS
Chancel repairs refer to the legal responsibility of homeowners to pay for repairs to the chancel or altar of the local parish church. This is an ancient law that dates back to medieval times and is still enforceable today. While the liability for chancel repairs is not always clear, it can become an issue when buying or selling a house.
The liability for chancel repairs is attached to the property rather than the owner. This means that even if the current owner has not been aware of any liability, the new owner will inherit it upon purchase. This can come as an unwelcome surprise for buyers and can even impact the value of the property. In some cases, it may be difficult to obtain a mortgage or insurance on a property that is known to have chancel repair liability.
To protect against the risk of chancel repair liability, buyers can purchase chancel repair indemnity insurance. This type of insurance covers the cost of any repairs that may be required in the future, and it can provide peace of mind to both the buyer and the mortgage lender. However, it’s important to note that indemnity insurance only covers the cost of repairs and not any associated legal fees.
Sellers also have a responsibility to disclose any known liability for chancel repairs to potential buyers. Failure to do so can result in legal action against the seller. In some cases, the seller may be able to negotiate with the church to have the liability removed or reduced, but this is not always possible.
Being aware of chancel repair liability ahead of a sale can help to ensure a smooth and stress-free property transaction.
FLYING FREEHOLDS
Flying freehold is a term used in property law to describe a situation where one part of a property, such as a room or a balcony, extends over or under another part of the same property or an adjacent property. This means that the freehold of the property is split between two or more owners, with one owner having a “flying” section of the property that is not physically attached to the rest of the property.
While flying freeholds are not uncommon in the UK, they can have an impact on the sale and purchase of a house. In particular, they can affect the value of the property and make it more difficult to obtain a mortgage.
One of the main issues with flying freeholds is that they can create uncertainty around the ownership and maintenance of the property. For example, if a balcony on one property extends over the roof of another property, it may not be clear who is responsible for maintaining the roof and dealing with any leaks or repairs.
Another issue is that flying freeholds can be difficult to value, as they may not be covered by standard property valuation methods. This can make it harder to obtain a mortgage, as lenders may be reluctant to lend on a property with an uncertain or difficult-to-value aspect.
To address these issues, it’s important for both buyers and sellers to seek legal advice when dealing with flying freeholds. This can help to clarify ownership and maintenance responsibilities and ensure that all parties are aware of any potential issues.
In some cases, it may be possible to resolve flying freehold issues through negotiation or by obtaining a deed of variation. This is a legal document that can be used to alter the terms of a property lease or title and can help to clarify ownership and maintenance responsibilities.
Flying freeholds can create additional complexity when buying or selling a property but they do not necessarily have to be a barrier to a successful transaction. With careful consideration and legal advice, it is often possible to resolve any issues and ensure a smooth and stress-free property transaction.
We hope you have found our article useful and informative. Our sales and lettings team here at David Cosby has legal and surveying expertise to ensure you receive the highest standard of service and the best professional advice on all your property-related matters. Whether you are renting, letting, buying, selling a property, or simply have a property-related question, please contact us by clicking the link below, or call 01327 361664.
