• Covenant? In TR1

    By Guest on 01st May 2017

    in the sellers TR1 it states "The Transferee confirms that the property is the Transferees only or principle residence and whilst he is the registered proprietor he will continue to use the property as his only or principal home' the seller bout from housing association in 2004 under right to buy. does this need to be passed on to me as i am buying at full market price with no discount and they are outside the time they have any discount to repay... my solicitor seems to think this clause should also pass to me... however i want to buy the property to let out and have a buy to let mortgage as well as large deposit (majority of the asking price) If this clause does pass to me i can not buy. there are several properties in the same street that are being privately rented out... i am at a loss with what advice is correct?? I am waiting to hear from the legal department at housing association after the bank holiday, however advice from a forum is that I am NOT the tranferee stated in that TR1 and that clause should not be passed onto my TR1... is this correct... I have signed my paperwork nd just about to exchange when my solicitor noticed this on the sellers TR1... please HELP... URGENTLY

  • 1 Answers

    By Guest on 02/05/2017

    Hi,

    You need to listen to your solicitor's advice as it isn't possible to make a judgement without seeing all of the paperwork. In any event your solicitor (who is presumably also acting for the lender) cannot proceed to submit a report on title to the lender, knowing they are lending on the basis the property will be let, when it appears to him that the property cannot be let. This type of covenant is not standard for properties bought under the right to buy and is therefore specific to the area. The intention may well be to always ensure that the property is reserved for local people to live in. This happens in areas that have a lot of holiday homes or "weekend retreats". The term transferee incidentally frequently includes "successors in title", i.e. future owners. Other houses in the street may well be rented privately but they may not have the save covenant, or indeed they may be in breach.

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