We’re 6 months in to a house purchase and seem to have hit a stumbling block.
The house is around 10 years old on a small development that is subject to a service charge for cutting grass on a communal green area.
Our solicitor says the seller’s solicitor needs to arrange a deed of variation under S121 of the Law of Property act, as service charges can be seen as rent charges and the lender requires the DoV in order to lend.
The original developer has been asked to draft this and has so far been resistant as they’ve never had to do one before (about 5 homes on this estate have been sold on since they were originally built and sold by the developer, including a few in the last 2yrs), don’t understand why it’s being asked for and are happy with the wording as it stands. They’re a small-ish regional developer, but are well established.
my question is, is there any chance our solicitor is being over cautious and the DoV isn’t absolutely necessary? Is one always required where the property is subject to a service charge? We obviously want to protect ourselves both now and in the future, so will push as far as we can and ultimately walk away if needed, but I just want to be really sure before it comes to that. I’m just struggling to understand why no other sellers have had to do this on this estate (or any of theirs allegedly). One thing I’ve thought of over the weekend is whether the management company have been asked to do them in other instances, rather than the developer themselves? Is that a possibility or would the developer still be involved?
Thank you in advance for any advice.