AJ – 14.08.14
LAND REGISTRY
DEED OF COVENANT
County and District:
Gloucestershire – Cotswold
Title Numbers:
[
Property:
Plot No [
]
]
to be known as [
Dated:
]
20
THIS DEED OF COVENANT is made BETWEEN:
(1)
COTSWOLD DISTRICT COUNCIL of Trinity Road, Cirencester, Gloucestershire GL7 1PZ
("the Council") and
(2)
[
] of [
] (‘the Covenantor’)
NOW THIS DEED WITNESSES as follows:
1.
DEFINITIONS
In this Deed of Covenant the following words and expressions shall have the following
meanings:
the Chargee
means any mortgagee or chargee from time to time of the Property or any receiver
appointed by a mortgagee or charge in possession;
the Cotswold District
means the administrative area of the Council
the Covenantor
means [
] and his/her/their successors in title to the Property;
the Current Allowance
means the amount of £[
] (
pounds) allowed by the
Council to assist the Covenantor with the purchase of the Property (being the Relevant
Percentage of the Current Open Market Value);
the Current Open Market Value
means the Open Market Value of the Property at the date of this Deed of Covenant in the
amount of £[
](
pounds);
Disposal
means the transfer of the freehold and reference to “Dispose” and “Disposing” shall be
construed accordingly;
Exempt Disposal
means:
(a)
a Disposal of the whole of the Property to any one or more of:
(i)
the person or persons making the Disposal;
(ii)
the spouse or former spouse of that person or one of those persons;
and/or
42499\1 deed of covenant (aj track changes – 14.08.14)
AJ – 14.08.14
(iii)
a member of the family (within the meaning of Sections 56 and 186 of
the Housing Act 1985) or any person making the Disposal who resided
with that person throughout the period of 12 months ending with the
Disposal;
(b)
a vesting of the whole of the Property in a person taking under a Will or Intestacy;
(c)
a Disposal of the whole Property pursuant to an Order under Section 24 of the
Matrimonial Causes Act 1973 or Section 2 of Inheritance (Provision for Family and
Dependants) Act 1975;
(d)
a Disposal to a person acquiring the Property compulsorily or a voluntary Disposal
to a person who has made or would have made an order for the compulsory
purchase of the Property for the purposes for which it is acquired or to a person for
whom another person has made or would have made such an order;
Local Connection
means (not in order of priority);
(a)
persons who have or persons whose partners have for a continuous period of
three years immediately prior to their occupation of the Property had their only or
principal home in the Parish or the Surrounding Area or in the Cotswold District;
(b)
persons who have or persons whose partners have previously had their only or
principal home in the Parish or in the Surrounding Area or in the Cotswold District
for a continuous period of five years;
(c)
persons who have or persons whose partners have for a period of twelve months
immediately prior to their occupation of the Property had their principal place of
work in the Parish or in the Surrounding Area or in the Cotswold District;
(d)
persons who have had or persons whose partners have had immediately prior to
their occupation of the Property one or more of their parents grandparents children
or siblings living within the Parish or in the Surrounding Area or in the Cotswold
District for a continuous period of five years;
(e)
persons who in the opinion of the Council (acting reasonably) need to live within
the Parish or Surrounding Area in order to perform employment which provides a
benefit to the economy or social well-being of the community;
Open Market Value
means the amount which could be reasonably expected to be realised in the open market
on a sale of a freehold interest in the Property if it had been offered for sale unconditionally
for cash consideration on the date of valuation assuming:
(a)
a willing seller and willing buyer;
(b)
that prior to the date of the valuation there had been a reasonable period (having
regard to the nature of the property and the state of the market) for the proper
marketing of the Property;
(c)
that no account is taken of any additional bid by a prospective purchaser with a
special interest;
(d)
that any improvements (including any value attributable to such improvements)
and any depreciation caused by or attributable to any failure of or neglect to keep
the dwelling and any other buildings forming part of the Property in good repair,
order and condition and in good decorative order were ignored
42499\1 deed of covenant (aj track changes – 14.08.14)
AJ – 14.08.14
(e)
that the Property is to be sold free from the restrictions or obligations contained in
the Principal Agreement;
Parish
means the Parish of Moreton-in-Marsh;
Principal Agreement
means an agreement dated 19th November 2014 and made between (1) Cotswold District
Council and (2) Fire Services College Limited;
Qualifying Purchaser
means a person who has demonstrated to the Council’s satisfaction that he is:
(a)
at least 18 years old;
(b)
a member of a household having an annual income of less than £60,000 (Sixty
Thousand Pounds) (or such other figure as the Council may agree);
(c)
purchasing the Property for occupation as his sole main residence;
(d)
unable to afford to buy a home suitable for the housing needs of his household on the
open market in the Cotswold District;
(e)
able to demonstrate a good credit history (i.e. no bad debts or County Court
Judgments) and be able to afford the regular payments and costs involved in buying
the Property; and
(f)
meeting one or more of the following criteria (in priority order) prior to his proposed
occupation, namely that the person:
(i)
has a Local Connection with the Parish; then
(ii)
has a Local Connection with the Surrounding Area; then
(iii)
has a Local Connection with the Cotswold District
the Relevant Percentage
means 30%
the Selling Price
means the net selling price for the Property as may be determined from time to time
pursuant to Clause 6.5 below
the Surrounding Area
means the parishes of Todenham, Batsford, Bourton-on-the-Hill, Sezincote, Longborough
and Evenlode
the Transferee
means a person to whom a Disposal is made in accordance with Clause 6.6(b)
2.
INTERPRETATION
2.1
Words importing one gender include all other genders and words importing the
singular include the plural and vice versa.
2.2
The expressions “the Council” and “the Covenantor” shall include their respective
successors in title
2.3
References in this Deed to any clause without further designation shall be construed
as a reference to the clause of this Deed so numbered.
42499\1 deed of covenant (aj track changes – 14.08.14)
AJ – 14.08.14
2.4
3.
4.
The clause headings do not form part of this Deed and shall not be taken into account
in its construction or interpretation.
RECITALS
3.1
The Covenantor has today completed the acquisition of the Property from
[
]
3.2
The Property has been sold subject to the planning obligations contained in the
Principal Agreement and the Covenantor enters into this Deed in accordance with the
requirements of the Principal Agreement.
ACKNOWLEDGEMENT
The Covenantor acknowledges that the consideration for the transfer of the Property to the
Covenantor was agreed between the parties as the Current Open Market Value less the
Current Allowance.
5.
THE RESALE COVENANT
In consideration of the Current Allowance the Covenantor covenants with the Council
pursuant to Sections 33 and 609 of the Housing Act 1985 (as amended) Section 111 of the
Local Government Act 1972 and Section 33 of the Local Government (Miscellaneous
Provisions) Act 1982 and the Localism Act 2011 as follows:
5.1
the Covenantor shall not Dispose of the Property otherwise than by way of:
5.1.1 a Disposal of the whole or any part of the Property in accordance with Clause 6
below; or
5.1.2 an Exempt Disposal;
each such Disposal or vesting to be with the benefit of the rights enjoyed by the
Covenantor but subject to the exceptions and reservations covenants (including the
covenants set out in this Clause 5) acknowledgements and declarations set out in the
Property, Proprietorship and Charges Registers of the registered title to the Property;
and
5.2
6.
the Covenantor shall occupy the Property as his/her sole main residence.
DISPOSAL OF THE PROPERTY BY THE COVENANTOR
6.1
The Covenantor shall not Dispose of the Property pursuant to Clause 5.1 above
without first:
(a)
giving notice in writing to the Council of his/her intention to Dispose of the
Property;
(b)
sending to the Council for approval two Open Market Valuations of the
Property from independent estate agents who operate in the Morteton-inMarsh area who are either Members of the Royal Institute of Chartered
Surveyors or the National Association of Estate Agents together with a
marketing strategy for the Property to include draft wording of the proposed
advertisements for the Property (‘the Marketing Strategy’)
6.2
Where the Council does not approve or reject the Open Market Valuations and the
Marketing Strategy referred to in Clause 6.1 above within 15 Working Days of receipt
of the same then the Open Market Valuations and Marketing Strategy shall be
deemed to be approved on the expiry of the said 15 Working Day period
6.3
Where the Council serves notice that it does not approve the Open Market Valuations
and /or the Marketing Strategy within 15 Working Days of receipt of the same then
42499\1 deed of covenant (aj track changes – 14.08.14)
AJ – 14.08.14
the Covenantor shall submit further details for approval and the provisions of Clause
6.2 above and this clause shall apply to the resubmitted details mutatis mutandis
7.
6.4
The Covenantor will at his own expense commence actively marketing the Property
for Disposal to prospective Qualifying Purchasers at the Selling Price in accordance
with the approved Marketing Strategy as soon as reasonably possible following
approval of the same pursuant to Clause 6.2 above (‘the Commencement of
Marketing’) .
6.5
The Selling Price shall be the average of the Open Market Value from the two Open
Market Valuations with a 30% discount from the average figure relevant at the
Commencement of Marketing of the Property and (save for Disposal pursuant to
Clauses 6.6(b) or 7.3(b)) the Property shall not be Disposed of at a price greater than
the Selling Price
6.6
The Property shall only be Disposed of:
(a)
at the Selling Price; and
(b)
to a person who is a Qualifying Purchaser PROVIDED THAT in the event that
no Qualifying Purchaser offers to purchase the Property within 6 months of
Commencement of Marketing of the same (as set out in Clause 6.4 above)
the Covenantor shall (at the Covenantor’s sole discretion) be entitled to
Dispose of the Property
(i)
to any person who has demonstrated to the Council’s satisfaction that
he meets the criteria set out in paragraphs (a) – (e) of the definition of
Qualifying Purchaser; and
(ii)
free of the covenant contained in Clause 5.1 above (and on
completion of the Disposal the Council and the Covenantor will enter
into a Deed releasing the Property from the terms of this Deed of
Covenant in accordance with Clause 8 below and upon completion of
the Deed of Release referred to in Clause 8 the parties agree to the
cancellation of the restriction referred to in Clause 9 of this Deed of
Covenant.)
6.7
No later than 7 days after exchange of contracts for Disposal of the Property in
accordance with this Clause 6 the Covenantor shall notify the Council in writing of the
full names of the Transferee demonstrating that he meets the criteria set out in
paragraphs (a) – (f) of the definition of Qualifying Purchaser including the relevant
Local Connection or (where relevant) evidence that 6 months from the
Commencement of Marketing has expired in accordance with Clause 6.6(b) and the
Selling Price at which the Property is to be Disposed.
6.8
For the avoidance of doubt it is declared that following each Disposal in accordance
with this Clause 6 (but subject to Clause 6.6(b)(ii)) the provisions of this Deed of
Covenant in its entirety shall continue to apply to the Property and shall be binding
upon and enforceable against the Transferee as successor in title to the Covenantor.
DISPOSAL OF THE PROPERTY BY THE CHARGEE
7.1
Unless otherwise stated in this Clause 7 it is agreed that the provisions contained in
Clauses 5 and 6 above do not apply in the case of a Disposal by the Chargee.
7.2
The Chargee shall not Dispose of the Property without first giving notice in writing to
the Council of its intention to Dispose of the Property accompanied by an independent
valuation of the Property stating the Open Market Value of the Property
7.3
For the avoidance of any doubt the Chargee shall at the Chargee's sole discretion be
entitled to offer the Property for Disposal on the open market either:
(a)
in accordance with Clause 6 above; or
(b)
free of the covenant contained in Clause 5.1 above (and on completion of the
Disposal the Council and the Chargee (or such other person as the Chargee
42499\1 deed of covenant (aj track changes – 14.08.14)
AJ – 14.08.14
shall direct) enter into a Deed releasing the Property from the terms of this
Deed of Covenant in accordance with Clause 8 below and upon completion of
the Deed of Release referred to in Clause 8 the restriction referred to in Clause
9 of this Deed of Covenant shall be cancelled.)
7.4
No later than 7 days after exchange of contracts for Disposal of the Property in
accordance with this Clause 7 the Chargee shall notify the Council in writing of the full
names of the person or persons to whom and the price at which the Property is sold.
8.
RELEASE OF THE RESALE COVENANT
8.1
The Deed of Release referred to in Clause 6.6(b) and 7.3(b) above shall be substantially in
the form set out in the Schedule to this Deed but with such amendments as may be
reasonably necessary to give effect to the release and shall be completed at the offices of
the Council on such date as the Council and the Covenantor or Chargee (as the case may
be) shall agree
8.2
The consideration for the Deed of Release referred to in Clauses 6.6(b) and 7.3(b) above
(as applicable) shall be the Relevant Percentage of the Open Market Value of the Property
determined in accordance with Clause 6.2 or Clause 7.2 (as applicable) above PROVIDED
THAT in the case of the sale of the Property by the Chargee only the Council acknowledges
that the calculation of the said consideration for the Deed of Release is[subject to the
extent to which the Chargee is able to Dispose of the Property for a consideration which
exceeds the sum which the Chargee requires to redeem its borrowing on the Property
including all accrued principal monies, interest, costs and expenses in connection with the
charge or mortgage in respect of the Property (“the Redemption Sum”) and the said
consideration for the Deed of Release referred to in this clause shall be reduced by the
amount (if any) by which the Redemption Sum results in a shortfall in the consideration
required to be paid to the Council
9.
RESTRICTION ON THE REGISTER
In order to give effect to the covenants set out in Clause 5 of this Deed of Covenant the
Council and the Covenantor apply for the entry of a restriction on the Register of the Title to
the Property in Standard Form L in Schedule 4 of the Land Registration Rules 2003
namely:[“No disposition of the registered estate (other than a charge) by the proprietor of the
registered estate or by the proprietor of a registered charge, not being a charge registered
before the entry of this restriction, is to be registered without a certificate signed by the Head
of Legal and Property Service or the Solicitor acting on behalf of Cotswold District Council of
Trinity Road, Cirencester, Gloucestershire that the provisions of the Deed of Covenant
dated [
] 20 made between (1) Cotswold District Council and (2)
[
] have been complied with or that they do not apply to the
disposition"]
IN WITNESS of which the parties have executed this Deed of Covenant as a Deed the day and year
first before written
42499\1 deed of covenant (aj track changes – 14.08.14)
AJ – 14.08.14
THE SCHEDULE
The Deed of Release
DATED
20[
]
COTSWOLD DISTRICT COUNCIL
and
[
]
LAND REGISTRY
LAND REGISTRATION ACT 2002
DEED OF RELEASE
Administrative Area:
Gloucestershire – Cotswold
Title Number:
[
Property:
Plot no [
]
]
to be known as [
]
Date:
THIS DEED OF RELEASE is made the
(1)
day of
20
BETWEEN
COTSWOLD DISTRICT COUNCIL of Trinity Road, Cirencester, Gloucestershire GL7 1PZ
(“the Council”)
and
(2)
[
] ("the Owner")
NOW THIS DEED WITNESSES as follows:
1.
DEFINITIONS
In this Deed the following expressions shall where the context so admits have the following
meanings:
the Property
means
;
the Deed of Covenant
means the Deed of Covenant dated [
the Council and (2) [the Owner]/[the Original Covenantor];
[Original Covenantor
means [
42499\1 deed of covenant (aj track changes – 14.08.14)
];
] and made between (1)
AJ – 14.08.14
2.
RECITALS
2.1
This Deed is supplemental to the Deed of Covenant
2.2
The parties to this Deed have agreed to enter into this Deed to effect a release of the Deed
of Covenant
3.
RELEASE
In pursuant of the agreement and in consideration of the sum of
[
] pounds (£
) now paid by the Owner to the Council
(receipt of which the Council acknowledges) the Council releases the Owner and their
successors in title and the Property and each and every part of it from the Deed of Covenant
4.
COSTS
The Council and the Owner shall pay their own costs in accordance with the preparation
negotiation and completion and registration of this Deed
5.
APPLICATION FOR REMOVAL OF THE RESTRICTION
In order to give effect to the release set out in Clause 3 of this Deed the Owner applies for
and the Council consents to the removal of the Restriction on the Proprietorship Register of
Title Number GR
and registered pursuant to Clause 9 of the Deed of
Covenant
IN WITNESS of which the Council has executed and the Owner has signed this Deed of Release as a
Deed the day and year first before written
THE COMMON SEAL of
)
COTSWOLD DISTRICT COUNCIL
)
was hereunto affixed in the presence of:
)
Head of Legal and Property Services
SIGNED AS A DEED by the said
)
)
In the presence of:
42499\1 deed of covenant (aj track changes – 14.08.14)
)