Title deeds for any property is available online for the public to purchase for £3 and there are two tips we would like to share today with you that could save you thousands and potentially make you thousands.
Ownership
Not a lot of people are aware of this but downloading the title deeds for a property, particularly an investment property or commercial, will identify who the owner is and where you can reach out to them. So if you come across a property and you would like to approach the owner to see if they would be interested in selling, this is how to do it – direct to vendor is a successful route used countless times and one we use over and over.
This could grab you a bargain if you find the right owner that wants to do a deal!
Restrictive Covenant Check
One of checks that often gets missed, even with professional property investors, is checking the title deeds. This is a really important check and has saved us losing thousands of pounds time after time.
The title deeds state the covenants that a property has to follow and which can be legally enforced if broken.
One of the most common covenants is the one which means that the property can only be used as a single-family dwelling. This prevents the use of the property as a HMO.
For example, a great area for HMOs is Harlow, Essex but unfortunately this is an area where most of the properties have the above restrictive covenants. Many landlords choose to ignore these covenants and now in 2020 Harlow has blocked new HMO licenses.
We were one of those investors that were aware of these restrictions and had a solicitor do their investigations and decided not to risk developing a house to a HMO back in 2019 – a decision that has saved us thousands for us and our investors.
So doing your due diligence before even putting in an offer is really important – don’t lose money!
