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Original poster

Extension_ breach of covenant

7 replies

Esme86 · 14/02/2023 20:22

We are buying a house with only a few weeks to completion. However we have discovered that for the kitchen extension, which was erected 2 years ago, the sellers did not obtain permission from the leaseholder. The least states nostructural alterations within 7 years. They are willing to take out an indemnity policy to protect against any costs incurred however I am not satisfied with this as is doesn't stop the lease holder taking action against us. We have asked for the seller to ask for retrospective permission which they have refused. What would you do? Are there any other ways of getting round this?

OP posts:
TheSnowyOwl · 14/02/2023 20:28

Can they get an additional indemnity policy to protect you?

Sarahcoggles · 14/02/2023 20:30

Can you approach the leaseholder yourself?

MinnieMountain · 14/02/2023 20:33

Walk away unless they agree to have the properly description in the lease varied to include the extension. This isn’t an indemnity policy one.

Original poster
Esme86 · 14/02/2023 20:35

They will get the indemnity policy to protect us but it just protects against legal costs so in theory if wouldn't stop any action being taken about us and although unlikely, the lease holder would be within their rights to instruct us to take the extension down. Once the lease holder has been approached, the indemnity becomes invalid. My concern is also that when we come to sell in the future, is this likely to put off a future buyer too?

OP posts:
MinnieMountain · 14/02/2023 20:45

Yes it is OP. I wouldn’t advise a client to proceed with just an indemnity policy.
What does your lender say?

DogInATent · 14/02/2023 20:46

Tell them it's non-negotiable and you will withdraw your offer if they do not agree to resolve the issue with the leaseholder prior to exchange. Then stick to your guns. We had a broadly similar situation with a 9yo extension that hadn't had a building regs sign-off when it was finished.

The thing to remember is, you've found this out and told them. They now can't withhold this information from any other prospective buyer. I wouldn't want to buy a property with this sort of known problem hanging over it unresolved, but I'm also not keen on leasehold anyway. What other covenants are there?

Original poster
Esme86 · 14/02/2023 20:56

Not sure about the lender but our solicitor agrees they need to get retrospective permission . However their solicitor will say the opposite

OP posts:
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