Unregistered house with restrictions(16 Posts)
I am in the process of buying an old house and it turned out that it has never been registered with Land registration. To make the things worse, on the 1986 conveyance, it seems that there is 80 years restrictions. All my friends worried for me, is it leasehold or freehold. My solicitor (online company) told me that it is freehold but he is not able explain why there is 80 years clause in it. Any expert or seasoned house buyer can advice me on this please? Many thanks!!! Francis
Here is the page , especially the near the bottom of the page paragraph 2
Between D and A both of the 1 cherrywood crescent, Eastleigh, Hants (hereinafter called “the Vendors”) of the one part and B and C both of 1 Lily Drive, Reading Berks (hereinafter called “the purchasers”) of the other part
The vendors are seised of the property hereinafter described for an estate in fee simple subject only as hereinafter appears but otherwise free from incumbrances;
•The Vendors hold the said property upon trust to sell the same and to stand possessed of the net proceeds of sale thereof and of the net rents and profits thereof until sale upon trust for themselves as beneficial joint tenants;
•The Vendors in execution of the said trust for sale have as beneficial owners agreed with the Purchasers for the sale to them of the said property for the said estate at the price of Eight-nine thousand pounds (£89000).
NOW THIS DEED WITNESSETH as follows:
•In consideration of the sum of Eighty-nine thousand pounds (£89000) paid by the Purchasers to the Vendors (the receipt whereof the Vendors hereby acknowledge) the Vendors as beneficial owners hereby convey unto the Purchasers AL THAT piece or parcel of land situate in the Parish of Ampfield in the county of hants having a frontage of Fitty feet or thereabouts to 1 Cherrywood Cresent as the same is for better identification thereof delineated on the plan hereto annexed and thereon edged red together with the messuage or dwellinghouse erected thereon or some part thereof and known as 1 cherrywood crescent together with all rights and other matters referred to in a Conveyance dated the 12th August 1937 and made between E and F of the other part in so far as the same are still subsisting in relation to the property hereby conveyed and capable of being enforced. To hold the same unto the Purchasers in fee simple as beneficial joint tenants
•It is hereby declared that the Purchasers or other the trustees for the time being of this deed shall have full power until the expiration of the period of eighty years from the date hereof (which period shall be the perpetuity period applicable hereto) to mortgage charge lease or otherwise dispose of all or any part of the said property with all the powers in that behalf of an absolute owner.
•In witness whereof the said parties to these presents have hereunto set their hands and seals the day and year first above written .
You've given the address of the property in your post so I've reported it as it is identifying. Your conveyancer should advise, but you need this 80 year right removing or the purchase can't proceed.
Can’t advise but with something like this I’d want a proper solicitor to look at it some of those online companies are dreadful if there are any issues. We walked away from a buyer because of this the company just didn’t know how to deal with the issue and it drew the process out too much.
Thank you for the advices. Thank you for reminding of confidentiality. However, all the names and address are pseudo. that is why I have type in.
To be fair official copies, deeds etc are a matter of public record. Anyone can look at them. It's a Freehold. The clause isn't unusual and it's hard to explain
the quick and slightly lazy answer is that if there are concerns, the seller could apply for voluntary first registration then sell you what should presumably be a freehold registered title. Practically, they won't want to do this.
If the 80 years runs from 1937, then it's up, isn't it? 1937 plus 80 = 2017?
Many thanks, everyone. the 80 years started 1986 when this conveyance was written.
The seller will not registered first due to the possible delay of weeks or months. they have an empty house to move to.
That doesn't sound like a logical reason to not register, if registering was as simple as that.
Registering would increase the value. Most people would forgo their place in an onward chain if they could easily add value to what they're selling in just months.
It must not be easy or cheap to register IMO
Ok. So fee simple/absolute means freehold. Perpetuity periods typically denote periods for various rights (like a right of way) to come into effect. For example a piece of land may be sold with a perpetuity period for a right of access to an adjoining plot of land. If that right comes into effect during the perpetuity period (e.g. A path I created or a gate put in etc) then it become established. If it is not put into use then it expires at the end of the perpetuity period. It reads like it is missing some cpbext. Who are E&F? Can you post the whole thing?
Registering is pretty straight forward. In your case it would automatically be registered upon purchase so don't worry about that.
Scary is right. The 80 years is from the date of the 1937 lease for the marked piece of land.
What it is saying is that the property freehold was sold but a part of it had a restriction on title. This was put on for 80 years from August 1937. The reason we have mentioned it in the title is so it is clear that it is enforceable and it runs with the land.
What doesn't make sense is that if the last transaction was in 1986 then it should have been registered.
Obviously get proper legal advice and do not take the word of a randomer on the internet.
Registration has only been compulsory since the late ninties so it's not untoward that it is unregistered.
Thanks TinselTwins for you reply. I understand that they did not have to register before 1990. They are keen to move before Christmas and I did ask them to register first before I buy.
Your comment are very helpful. There is nothing missing on the conveyance of 1986. E is the original seller in 1937 and F is actually the D+A (a couple), who bought the house in 1937. Then they sold to B + C. The 1937 conveyance has some restrictions but nothing serious, such as not building an outdoor toilet etc.
the current seller told me that the 80 years issue is a way to protect themselves as the then solicitor was their family friend. the 80 years issue will have nothing to do with me if we buy the house. What is your comment?
Many thanks, Unescorted !
I think that 80 years started from 1986. Please see this
"the Purchasers or other the trustees for the time being of this deed shall have full power until the expiration of the period of eighty years from the date hereof (which period shall be the perpetuity period applicable hereto)"
The hereto means this document, which written in 1986. Am I right?
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