10:58 AM, 3rd March 2021, About 2 years ago 13
I’m selling a house set up as an HMO, that hasn’t been rented out to anyone. It has a ‘single private dwelling house’ restrictive covenant. We are/were ready to exchange & complete.
The buyer has had the HMO licence guaranteed by the council 14 days post-completion, and it was a term of his mortgage that covenant consent should be provided by the council prior to exchange. So he wrote to the council and requested approval.
Their response was ‘I wish to confirm that the Housing Department will not release the covenant in order to use the above property as an HMO’.
I believe the council do not necessarily act against HMO’s breaching covenants in the area, although I’m well aware this isn’t a guarantee they won’t, but without consent, I don’t see how the buyer’s mortgage provider will release funds.
This is now my problem because he can walk away, and I will struggle to sell the house to anyone other than a cash buyer willing to take the risk.
Does anyone have any possible solutions? Other than selling it to someone else as a family home?
Very grateful for any assistance you can provide.