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Covenant Fee in Deeds

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  • Covenant Fee in Deeds

    We are looking into extending our property and the covenants in our deeds show that we need approval from the original builder. However, the fee stated in the deeds for such approval is stated explicitly as £20, however the builder is now asking for £200 (he is basically also saying that if we want him to approve it that's the fee take or leave it).

    Can the builder (listed in the deeds as the transferor) legally increase the fee regardless of the amount stipulated in the deeds (there is no mention in the deeds suggesting this figure is index linked or anything similar)?

    Any case law to support his or our argument would be useful!

  • #2
    Have a quick chat on the phone with a solicitor who specialises in residential property - they should be able to professionally advise on this.

    Apologies for not being of more help, but questions of a legal nature really need a qualified legal representative to comment, and I'm afraid I'm not one.

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    • #3
      Re: Covenant Fee in Deeds

      Is there a provision in the Deed for the original builder to act reasonably ?
      Fridays Property Lawyers
      Specialists in Leasehold Conveyancing

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      • #4
        Re: Covenant Fee in Deeds

        Simon Seaton has put his finger on the point: if the wording of the covenant is such that, on payiong the £20 fee, you are entitled to consent for anything reasonable, the builder cannot insist on more. If the covenant gives him carte blanche to withhold consent, you have to pay the £200

        There may be scope for arguing over the engoceability of the covenant, but that would cost you more than the £200 the builder wants - and he knows it
        This is based on my experience as a conveyancing solicitor in England, but I do not accept liability for information I give in this forum

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        • #5
          Re: Covenant Fee in Deeds

          i have a slightly similar problem,i was given verbal assurance that i could build a conservatory at my new house by the builders reps on site.like an idiot i did not request in writing,the covenant says no changes to building within 5 years,recieved a letter of building to take down conservatory(after 2 years),i wrote what had happened/been said and asked for retrospective permission,informed yesterday can have permission for a fee of £5000!
          hope that makes our £200 feel a little bit more palatable.
          i am just trying to work out what to do for best,
          any suggestions.
          cheers.

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