ASK ROSS: Deeds, finance, inspections – buying a property can sometimes get complicated. Ross kicks off the new year by discussing some of your less common queries…
Our eminent residential property expert, Ross Ward, answers your questions about moving home. If you have a query about buying or selling, email marketing@tayloremmet.co.uk
My solicitor says the current owners of the house I am buying have contravened a covenant in the deeds. How can I protect myself against future repercussions?
A covenant is a clause written into the deeds that often restricts or forbids things being done on or from a property. For example, there may be a covenant stipulating that it can only be used as a private dwelling, or that any extensions or structural alterations need someone else’s approval.
Your solicitor will start by trying to find the person that benefits from the covenant to obtain a waiver from them. If they cannot be traced, it is likely that defective title indemnity insurance will be recommended, which is usually paid for by the vendor.
A typical policy costs between £200 and £250 (mostly settled by a one-off payment rather than an annual premium) but this depends on the risk being taken by the insurance company. Your solicitor will want to ensure the policy not only protects you, but any lenders and future owners and that the cover offered is adequate.
Generally, when covenants have been breached in the recent past, i.e. in the last 15 years, they will be more expensive to insure than those that occurred many years ago. The insurance company may require a statutory declaration from the vendor of the property that no one has raised any objections to the breach. Once the insurance has been obtained, the policy will be placed with your deeds.
I want to make some home improvements and need to obtain finance. My mortgage is with a building society that has suggested a further advance. What does this mean?
A further advance is an additional loan from your current lender that is secured by its existing mortgage on your property. It is a common source of finance among home improvers.
It may be that your building society will want to re-value your house to ensure there is sufficient equity to cover the increased debt, but as you have an existing mortgage, you will probably not need to sign a new deed and therefore, there should be no legal costs.
My solicitor has suggested I inspect the property I am buying carefully. What am I looking for?
A surveyor will check the property thoroughly for any structural faults, but you should pay particular attention to:
- Any ambiguity over identity or boundaries
- Evidence of any rights of way that may have an adverse effect
- The existence of tenants
- Any discrepancy between the vendor’s list of fixtures and fittings, supplied by your solicitor and those that actually exist
- Check services such as gas and electricity work correctly, particularly the central heating and any other forms of heating i.e. gas fires.
Your solicitor will be able to provide plans of the property, to cross reference the boundaries against and he or she will send written enquiries to the vendor’s solicitor outlining any issues that arise from your inspection.
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