Jump to content
House Price Crash Forum
Sign in to follow this  
HPCbeliever

Approval Of Plans - Any Advice

Recommended Posts

I have seen a house I like. However the seller wants to have an approval of plans covenant. I understand this will give the seller the right to approve plans for changes subject to the withholding of approval not being unreasonable. Does anyone have any experience of this kind of covenant?

Share this post


Link to post
Share on other sites

I have no direct personal experience per se, however my understanding from the case law I have read is that this type of covenant can be a major headache if you think it is likely that you may ever want to extend or otherwise develop the property at any time in the future. What you consider 'reasonable' may well differ greatly to what the vendor sees as such and since you agreed with the covenant on purchase there is little you can do about it.

The following link gives one such example: http://www.titleandcovenant.co.uk/pdfs/Dec08Newsletter.pdf

There is also the issue of whether you would wish to sell in the future and the likelihood of this covenant putting off other prospective buyers should you decide to move on.

In short, unless you are 100% certain you would not wish to make any alteration whatsoever at any time then steer well clear-why agree to have your hands tied over and above planning laws unless absolutely necessary? Plenty more fish in the sea!

Share this post


Link to post
Share on other sites
I have seen a house I like. However the seller wants to have an approval of plans covenant. I understand this will give the seller the right to approve plans for changes subject to the withholding of approval not being unreasonable. Does anyone have any experience of this kind of covenant?

I have experience of this and yes it is a headache. Before making any changes, even replacing windows, you must seak permission from the vendor before even starting with planning/building regs.

It will put off other buyers in the future if and when you come to sell. I will never again touch anything with a restrictive covenant on it.

Is the vendor a large developer? If the vendor is a private seller then I would have suspicions/reservations about why this is wanted. Has he made promises to the neighbours that it won't be extended? Does he have an interest in neighbouring properties? You need to start asking lots of questions, personally I would ask if the covenant idea be dropped and if they disagree then walk away.

Share this post


Link to post
Share on other sites

Thanks. This is helpful. I am minded to take your advice. I was also worried about reselling in the future. Just out of interest I assume it is really hard to get a mortgage on a property with a restrictive covenant. Am I right?

Share this post


Link to post
Share on other sites

As richyc said it may be better to ask the seller why he wants the covenant. What is he specifically worried about. It may be something minor.

It should be possible to have the covenant worded to take account of his precise wishes so you know exactly where you stand before you buy.

Edited by Rinoa

Share this post


Link to post
Share on other sites
Thanks. This is helpful. I am minded to take your advice. I was also worried about reselling in the future. Just out of interest I assume it is really hard to get a mortgage on a property with a restrictive covenant. Am I right?

Surprisingly not, ordinarily speaking-you would be surprised just how many residential properties (especially leaseholds but not confined to these)do have restrictive covenants in place so that on it's own would not put off lenders. In certain circumstances it may affect the valuation to some extent but from what I can ascertain that is the exception rather than the norm.

Edited by stonethecrows

Share this post


Link to post
Share on other sites

How about asking for a restictive covenant on the vendors place in exchange. Be interesting to see if he's prepared to take a dose of his own medicine.

Share this post


Link to post
Share on other sites

Thanks for all the advice. I think I know the reasons for the covenant and I think the house is best left alone. I have to say I am very tempted by v23nb's advice but I don't think it would help.

Share this post


Link to post
Share on other sites
Thanks for all the advice. I think I know the reasons for the covenant and I think the house is best left alone. I have to say I am very tempted by v23nb's advice but I don't think it would help.

so what were the reasons then? got us interested now...

Share this post


Link to post
Share on other sites
Thanks for all the advice. I think I know the reasons for the covenant and I think the house is best left alone. I have to say I am very tempted by v23nb's advice but I don't think it would help.

Ohh Ohhh finish me off please !

Errr I mean could you please inform your loyal readership what the covenant was for ?

Share this post


Link to post
Share on other sites
As richyc said it may be better to ask the seller why he wants the covenant. What is he specifically worried about. It may be something minor.

It should be possible to have the covenant worded to take account of his precise wishes so you know exactly where you stand before you buy.

Blimey, You've answered a question without being a dick.

Have a hob-nob

Share this post


Link to post
Share on other sites
How about asking for a restictive covenant on the vendors place in exchange. Be interesting to see if he's prepared to take a dose of his own medicine.

My thoughts exactly. I think the vendor has got an effing cheek, trying to impose their will, forever after they have gone. They're selling the place FFS. If they love the place that much, so as to care what happens to it, they shouldn't be selling. They might oppose everything you ever want to do.

It is difficult enough to sell a place in this climate as it is, without stipulating b0**0x like this!

Steer well clear and watch them struggle to sell it.

Share this post


Link to post
Share on other sites
Thanks for all the advice. I think I know the reasons for the covenant and I think the house is best left alone. I have to say I am very tempted by v23nb's advice but I don't think it would help.

I have come across this a few times and can understand if it's a builder wanting to protect the other houses - and they are unlikely to unreasonably withhold consent.

However, if it's an individual then they've probably a vested interest - i.e. relative lives next door, owns other property on the street etc. and I agree with the others - walk away. You might not think it important now - but when you want a conservatory in 5 years time then it'll be a problem. Also definitely a problem for resale.

So go on then HPCB tell us?????

Share this post


Link to post
Share on other sites

A friend of mine is currently buying a house (distressed sale) where the vendor wants a clause in the contract so that if they sell off a bit of the land the vendor gets a share of the money! Seems that a builder was interested in building on it and got got PP. He has since gone bust and the PP expires net year.

I said just build a summer house on that plot, or dig a pond and pop some crested newts in.

Seems cheeky to sell a house, but still want control over it. Either you want/need to sell it or you don't. Can't have it both ways.

Share this post


Link to post
Share on other sites

Thanks again. The reason, I think, is that the vendor is very attached to the property. I think it will just be hassle too and so we are just going to walk away. I want a freehold property in which, subject to planning laws, I am the king of the castle!

Share this post


Link to post
Share on other sites
Thanks again. The reason, I think, is that the vendor is very attached to the property. I think it will just be hassle too and so we are just going to walk away. I want a freehold property in which, subject to planning laws, I am the king of the castle!

I hate people like that..eat the cake and having it..if they are so attached they shouldn't sell or rent it out instead..I would not touch it witch a bargepole.

Would be like renting... :rolleyes:

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   296 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.