It’s never free……………

Who doesn’t like getting something for nothing.

Owners of properties who were given grants for repairing their properties from the local authority may have had this thought when the money landed in their bank account. Had they won the proverbial watch? – as with many things that appear to good to be true there is a catch.

I come across title deeds from time to time that make reference to these types of grants. They are given the grand title - Notices of Improvement and Repair Grants. This takes the form of an amount of money that the local authority has given to the owner in order for them to carry out essential maintenance to their property. The Repair Grant comes with certain conditions that used to have to be complied with for a period of 5years but generally I am now seeing this extended to 10 years.

The conditions stipulate that the property must be :-

• Used as a private home (although some of it can be used for business purposes, for example, a shop or office).

• Your only or main home (so, for example, you can't decide to move somewhere else and use it as a holiday home).

• Kept in good repair.

All straight forward.

That is until you want to sell the property. What many do not realise is that the Repair Grant is shown on the title deeds as a secured loan and as such any purchaser will need to obtain the approval of their lender before they can buy the property. Whilst I have not come across a situation where the lender has refused to lend where there is a Repair Grant, I have seen instances where the lender has insisted that the grant is repaid from the proceeds of sale. This requirement for the purchaser to seek approval will certainly slow down the buying process. So what do you do?

If you are selling a property with a Repairs Grant then make sure that you have enough flexibility as possible in the date of entry for your purchase. As ever in domestic conveyancing give yourself sufficient time - then add a fortnight!

Get your solicitor to raise the issue with the purchaser as soon as possible. Lenders are notoriously slow in answering this type of question so the earlier that it is put to them the better.

If you are buying then you will need the same amount of flexibility on the date of entry. You should also make sure that the conditions have been complied with and that you will also be able to comply with them during your ownership.

One positive to take from the appearance of a Repairs Grant is that if it is recent then it would look on the face of it that the seller has looked after their property. Something that every purchaser should be happy with.

As ever, delighted to chat with you if you have come across any difficulties with a Repair Grants.