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NewExpertAS4920
NewExpertAS4920, Solicitor
Category: Law
Satisfied Customers: 372
Experience:  Experience in Litigation, Property, Family and Employment Law matters
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We are first time property buyers who saw and liked a new

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Hello! We are first time property buyers who saw and liked a new build freehold terrace house in London. The sale was through an agent and they explained the seller is a Receiver appointment. We have spoke to a few conveyance solicitors and none were keen to take up this conveyance job. I have done some digging through local council and went through the planning permission submission. Also I downloaded the land registry title register and plan. The registered owner is a building company that went into receivership. The new build is completed and according to the title register one terrace unit and a bungalow unit had been sold before the owner went into receivership. I'm wondering if this sort of property purchase is wort the risk? Should we take any additional steps before proceeding? Should we engage our own engineer to inspect building? Also there seem to be a beneficiary applied after the receivers were appointed. It also reads: UNILATERAL NOTICE in respect of an equitable charge
created by an interim charging order dated 22 October 2019 in the
County Court Money Claims Centre under court reference.
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: Please advise? First time buyers needing help for a home. Thank you so much!
JA: Where is the freehold located?
Customer: London
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: That is all. Thank you and we look forward to any sound advice.
Hi! I am a qualified solicitor in England and Wales. I will be assisting you with your query today. I may need to ask a few questions before I can address your query.Please bear in mind this is a chat service and there may be delays in responding due to assisting other customers.
Is there any reason why the conveyancers you spoke to have refused to take on your instructions?
Customer: replied 2 months ago.
They just said they are not able to take up such property purchase. One said their company is not set up for such conveyance as they tend to be quite complex.
Customer: replied 2 months ago.
I'm guessing conveyancers are extremely busy at the moment and rather go for straight forward transactions? Thank you for replying!
Sure. That may indeed be the case. But I suggest you contact other firm of solicitors. The matters outlined above whilst are slightly complex they are still quite common
Customer: replied 2 months ago.
Should we take any additional steps before proceeding? Also there seem to be a beneficiary applied after the receivers were appointed on title register. It also reads: UNILATERAL NOTICE in respect of an equitable charge
created by an interim charging order dated 22 October 2019 in the
County Court Money Claims Centre under court reference. What does this mean?
When you do instruct a solicitor or conveyancer, they will apply for searches which should provide details relating to the property, anu restrictions relevant certificates relating to the new build etc.Should you wish you could also instruct your own surveyor to inspect the property but there will be additional costs for this and will also requite the sellers/receivers consent.
Require*
The unilateral notice is a notice on the register to alert any potential buyers like yourself that there is a charge ie. Outstanding debt on the property.So effectively, if the purchase goes through, the seller/receiver will confirm to your solicitor by way of an undertaking that they will settle this debt and remove this entry from the register as soon as completion takes place. In other words, as soon as the purchase price is received to be able to pay off the debt.
I believe that answers your queries. If not, please feel free to ask follow up questions
Best wishes
NewExpertAS4920 and 2 other Law Specialists are ready to help you
Customer: replied 2 months ago.
Thank you for your advice. Really helpful!
My pleasure
Customer: replied 2 months ago.
Hi, please may I seek your advice? I have obtained the land title register of an owner in the same development.
Under proprietor register, it reads RESTRICTION: No disposition of the registered estate other
than a charge by the proprietor of the registered estate or by the
proprietor of any registered charge is to be registered without a
certificate signed by XX Management Company Limited
No.of XX road by its secretary or its conveyancer that the provisions of paragraph 4.11 of the Third Schedule
of the Transfer dated 10 December 2018 referred to in the Charges
Title number XX.What is a third schedule? Is this a restrictive covenant that allows the management to place rentcharges? I also search the management company and it turns out the director of this management company was the director of the company that owns the freehold which went into receivership?
Customer: replied 2 months ago.
This does feel very dodgy to me. Should I consult my solicitor or avoid such property purchase?
You should consult your solicitor as there must be more documents registered at the land register in relation to this property which will identify what the charge relates to.Similar to the unilateral notice, a charge can be removed from the property once the debt is paid. I suggest you speak to your solicitor as documents need to be review before you can decide whether to avoid buying the property.I hope that helps.
Customer: replied 2 months ago.
Thank you very much. It just that we have another property we like and the offer was accepted and this transaction is more straight forward with a family owner.
I have read it is common for new build freehold to have restrictions where management can charge any amount for maintenance and if not paid, they have the legal right to take possession of the freehold property. Spoke to my solicitor and she said she needs to see legal documents before she can comment. Just don't feel comfortable about this. Also where can I see what exactly are the restrictions? They are not showing on title register so that's probably a personal contract?
The documents with the restrictions are usually filed at the land registry. If they are not downloadable then you may need to request it from the Land register or ask your solicitor to do so.
I believe that answers your query. If you have any further questions please kindly raise a separate question