Ristriction on land register is related to freehold, i just buy the leasehold

[helen]

I am trying to buy a lease hold flat, but there is a restriction on the land registry as follows:

no disposation of the registered estate by proprietor without a certificate signed by a conveyancer to the applicant that the provisions of clause 12.1 (b) of the transfer dated 20 july 2000 made between (1)national car park limited and (2)Arena Central Limited has been complied with.

the clause of 12.1 (b) read as follows:
not to sell lease charge or otherwise dispose of the property or any part of the property without first procuring theat the purchaser lessee or chargee prepares executes and delivers a deed pursuant to which it covenants on behalf of itself and its successors in title with the Transferor and the Transferor's successors in title to the Transferor's car parks within a radius of half a mile of the property and each and every one of them for the nenefit of each and every one of such car parks to observe and perform these covenants.

my solicitor write:
In my view this restriction should not have been registered on this property but only on the freehold title. However, the Land Registry are not able to remove the restriction without a formal application from us. Once they receive this application, it will have to go to a senior officer who will decide whether they are able to remove the restriction. I cannot guarantee that the Land Registry will remove the restriction and that you will not have any difficulties on resale.

shall i buy the flat? is there any risk? please help!!!!!

[helen]

My understanding is the National Car Park sell the land or a car park to Arena Central ltd on 20 july 2000, then Arena Central ltd sell the land or car park to Crosby homes ltd, then Crosby homes ltd developed the modern flat with carparks sold to individual in 2004. my understanding of the ristriction is to say any one should agree that national car parks ltd can have car parks within half mile. am i right?

[Richard Webster]

You haven't told us what the restrictions say but obviously your solicitor thinks they don't have nothing to do with the flat development that you are buying in. The fact that there was this requirement for a deed of covenant suggests that in some circumstances National Car Parks were entitled to some money from the other Car Park company - perhaps a proportion of the profit if the land went for development? If that was the case then Crosby Car Parks should have paid the money and got the restriction removed in return.

However at the end of the day it isn't really your concern. I would be telling the seller's solicitor that was something he had to sort out before you exchange rather than something that was to be done after completion by your solicitor with no certainty of success.

[helen]

we have been informed the risk one day before the exchange--we have already transfered the deposit to our solicitor. so we want to get exchanged as we have waited 3 month but at the same time we have to know how big is the risk

the covenants is " 12.1 a) no vehicle parking shall take place at the property or any part thereof without the consent in writing of the transferor PROVIDED that this shall not prevent the transferee allowing a bona fide third party independent of the transferee and in particular not an associated company to occupy the property for the purpose of vehicle parking if all the following conditions are satisfied:

(1)the transferee shall have first offerd the transferor the same terms for letting or otherwise offered to the third partyand the transforor shall not within one month of receipt of such offer have accepted the same and in the event that the transferor shall not have accepted such offer with one month the transferee shall not grant to the third party any terms for lettg or otherwise differnt to those offered to the transferor
(ii)that upon the expiration of the bona fide third party's tenancy licence or right of occupation and the transferee recovering vacant poseesion of the property or relevant part the transferee sahll enter into a further covenant with teh transferor mutatis mutandis with the covenants contained in this deed to the intent such covenants shall be thereby reimposed in respect of the property or relevant part or parts therof.
(iii)the covenants contained in this deed shall in any event where only part of the property is so occupied for vehicle parking purposes still remain in full force and effect in respect of the remiander of the property.
(2)th

[helen]

please can you help.

what does the (iii) mean, dose that mean if the property is not ocupied for vehicle parking purposes then the covenants will not be applicable any more?

[Richard Webster]

None of this is relevant to a residential development and the seller simply needs to have it removed. Not up to you, up to him, because his solicitors shouldn't have allowed it to be there when he bought.

Your solicitor needs to get his solicitor to sort it or else. Even if you don't proceed I can't see another solicitor accepting it so the seller will need to get it removed.

[helen]

the solicitor has applied to remove the restriction, land reg has give a letter to say "the Notice of your application to cancel the restriction is being served", if no one come back to object the removal, how long will it take for land reg to remove the restriction

[Richard Webster]

Usually the length of the notice period - typically 28 days.