Monday, 7 July 2014

Covenant by Purchasers of Progress Estate Houses to Pay a Proportion of the Costs Incurred in the Maintenance of the Estate's Common Parts


The Royal Arsenal Co-operative Society (RACS) purchased all the houses on our estate from the Government in June, 1925.  A number of the freeholds were thereafter sold to individuals until, in November, 1980, the remaining 500 or so were bought by Hyde Housing.

We believe all RACS transfers to individual purchasers may have contained a clause under which the latter covenanted to pay to RACS a percentage of the costs incurred in the maintenance, upkeep and cleaning of the estate’s common parts.   We assume these percentages reflected the value of the property being transferred as a proportion of the estimated freehold value of the estate as a whole.   Thus, in one deed we have seen, the amount is 0.12% per annum. 

Most present-day owners probably purchased their houses from someone subsequent to the person who acquired it from RACS.   However, prospective purchasers’ solicitors are likely to scrutinise RACS transfers in scrutinising chains of title.

Following one or two enquiries asking whether or not monies are being collected under this covenant, we approached The Co-operative Group to ask them if they considered they still had a legal right to collect them.   Their Legal Department replied on 24th June 2014:

‘We can find no evidence from the investigations we have made that Co-operative Group Limited collect monies regarding the common parts of the Estate.   On that basis it would appear the Group have no entitlement to claim such monies.’

We trust this information will help vendors’ solicitors reply to purchasers’ enquiries.   If any further information is required, interested parties should contact:

Legal Department
The Co-operative Group
1 Angel Square
Manchester  M60 0AG

tel: 08437 512945
fax: 08437 514487 


Neither the Progress Residents Association nor its committee members jointly or severally accept any liability in relation to the forgoing.   Vendors and purchasers, whether actual or prospective, must rely solely upon advice obtained from their professional advisers. 

The Progress Residents Association

5th July, 2014

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