Consent to Let refused by developer

[bunggle]

Hi,

I hope someone can give some advice. Three years ago, I bought a new build one bedroom flat, taking advantage of an interest free loan from the property developer for 25% of the value.

I now have a baby with my wife and need to move to somewhere bigger. Unfortunately, the property developer still has flats for sale and has reduced the price of flats the same size and layout of mine by more than £25,000 (in fact you can now buy 2 bed flats for less than I paid for my 1). As a result, my property has been devalued by around the same amount.

It seems then that my only option is to let the flat and rent somewhere bigger. Because of the loan, I have to ask for consent from the developer to lease out the flat. Now here is the crunch - they are leasing out properties themselves (and then selling them on to investors) and have refused my request.

Is there any legal comeback I have? They have put me in the position where I can't sell and then won't let me lease it out either!

Many thanks

[bunggle]

An additional development since yesterday - They have stated that I should refer to the terms and conditions of the shared equity scheme for why they won't give consent. And are refusing to provide me a copy of these. Is this legal?

[BruceCampbell]

I would definitely see a solicitor about this. I don't see how it can be legal for them to tell you that you aren't allowed to let out a property you own, let alone not show you the terms and conditions.

[bunggle]

I would definitely see a solicitor about this. I don't see how it can be legal for them to tell you that you aren't allowed to let out a property you own, let alone not show you the terms and conditions.

Thanks Bruce. I'm looking for one now.

[BOA123]

Thanks Bruce. I'm looking for one now.

Bunngle,

Interesting to hear about your situation. Sorry I don't have an answer, but we are going through a similar experience.

Bought house 2 years ago, with a 80/20 equity split with the developer.
Change in circumstances - new job which is 1,000 mile commute a week! which is financially viable to travel, but was our intentions to move sooner rather than later. If we sold the house now we would get less than £500 back from the sale, our initial deposit was £9000! And be back to square one.

Mortgage lender said, ok to move to a consent to lease mortgage - but need agreement with house builder. House builder outright refusual, not even asking why etc.

Incredibly frustrating as we cant understand why they wont let us. The house value has gone down alot, so if it was sold they wouldnt be getting the most out of it.

Ultimately, I cant see how this impacts on them. I've asked a solicitor to take a look into this for more information, to see what is possible! I hate the fact that a corporation has a degree of control of what I can and can't do.

Our intention is to rent something out after moving then sell the house we own when the market is better.

[bunggle]

Hi Boa,

I've instructed a solicitor to act for me on this. I'll let you know what happens.