Implied restrictive covenant breach on Ex LA student let in NorwichMake Text Bigger
I am wondering if anyone else has come across this problem with Ex Council Houses.
I am purchasing additional ex Local Authority houses around the University in Norwich as going concerns which are let to students on single AST’s. My Conveyancer picked up on a restrictive covenant within the deeds and queried this through a law firm to the Norwich City Council.
The response received was:
The city council are of the view that occupation of ex-local authority properties such as these as student accommodation would in fact constitute a breach of the covenant which states:
a) That the owner shall not use the dwelling to carry on trade/business, and
b) That the owner shall use the property as a single private dwelling house only.
This decision follows a wider consideration of the question of student accommodation comprised in ex-council properties on the whole.
I have referred this back to the council as there is no trade/business carried on from the dwelling (it is let through a company not linked to the address) and that it is a group of 5 friends sharing a property on a single AST.
I am further aware that there are multiple student let purchases completing prior to 01 April 16 in ex Local Authority houses which do not appear to be getting the same response.
Has anyone on here had this issue previously with Norwich City Council or any other council, and if so, what was the outcome for you.
I am concerned about the ‘wider consideration of the question of student accommodation comprised in ex-council properties on the whole’ as there must be in excess of 1,000 XLA’s being used as student accommodation around the University and the potential knock on effect this could have.
This also has potential issues for further purchases or remortgages as most lenders will be wary of a declared implied breach.
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