Sale blocked to Local Authority by covenant in Lease- tenant taking legal action against management agent.

DannyBoyD said:
Give me strength.

If you are going to quote me do it correctly.

I clearly said "I think".
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You did, and I simply pointed out that what you thought was wrong. If you have a problem being told what you think is wrong, don't post unless you know.
 
Quote from the owner (Rory Roberts) in the case above:

"We can't sell it to this person, we can't sell it to that person," he said.

Perhaps he just needs to read the posts here and correct his wrong thoughts & all will be well.
 
I’m just curious here but wouldn’t all of the specifics about sales/ sublets etc been dealt with under terms and conditions of purchase? Isn’t this what a solicitor does in relation to land registry/property deeds/ management company rules etc?

Maybe I’m naive but I certainly wouldn’t be buying anywhere unless I was 100% aware of an exit strategy (for whatever reason).

I definitely would not buy a a place knowing there were restrictions on who or what entity I would be able to sell it to.

A covenant in a lease seems like something any solicitor should have been aware of? Perhaps not
 
I think it is only in recent years that local authorities or housing bodies have emerged as potential purchasers. If highlighted to op at time of purchase it probably raised no concerns at the time.
 
I don't recall it being brought to my attention, but I bought this property over 20 years ago. I brought it up at AGM of the management company recently and none of the other owners ( one of whom has just purchased) where aware of it. Some owners were delighted it was there, they felt it would attract a better type of buyer, and noted not everyone wants local authority neighbours.

In fairness it would not have stopped me purchasing the property. I am more annoyed at myself I wasn't aware of it and opted to look into tenant in situ scheme with FCC. If I hadn't explored it tenant would be out by now and property might already be sold. It has just wasted a lot of time for me.
 
Purchasers solicitors for the most part do a good job of highlighting any such clauses in the leasehold, the challenge is many purchasers are very much focused on the short term and buying the place, what might happen in 10 years time is not their priority. When I was a lot younger and buying my first place the fact that it was leasehold with only 90 years or something remaining on the lease didn't encourage me to ask more questions than I did!

rustbucket said:
I definitely would not buy a a place knowing there were restrictions on who or what entity I would be able to sell it to.

A covenant in a lease seems like something any solicitor should have been aware of? Perhaps not
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LAs and Housing Bodies are only a small part of the purchasing market, so it is of little consequence to a purchaser at the time. Indeed as I said earlier, some purchasers would welcome such a clause as a means of keeping the social element share of the development low and property valuse up.
 
By way of update the management company are calling an EGM to vote on granting consent to the sale. ( I have been advised previously this happened in other complexes and was always a NO from owners)

I've also been advised through the solicitor for the management company that the owners cannot be held responsible for a lease they did not create the terms of.

Even if owners consent to sale the LA moved away from the sale in March and could easily refuse to come back to the table.

..... lets see what happens next
 
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