Hello
I'm wondering if anyone can help - my parents are trying to sell their house but have come across a few stumbling blocks due to a overage clause being in existence on the property (which as far as i am aware is where the buyers are obliged to pay the original company that owned the land a percentage of any uplift in value if they develop the garden). This clause expires in 3 years time anyway but my parents really would like to move before this!
The buyers don't want to develop the land so aren't worried about the overage clause per se, but their original mortgage has been refused due to the existence of the clause. Without a mortgage I presume the sale will fall through.
I have discovered that the company that would benefit from the clause was dissolved in the early 2000s, but my parents have apparently been told that the Crown would be entitled to any monies payable.
I have to admit to not really understanding any(all?!) of the issues, but I suppose my questions are:
- is the overage clause void since the beneficiary company is no longer in existence?
- how could we go about voiding the clause if it isn't already?
- is indemnity insurance available against this? If it is, would mortgage lenders be happy to lend?
Any advice or comments would be most welcome, thank you.