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  • Commercial Property

    Car parking issue - an extraordinary one!

    Dear all,

    We purchased a large commercial multi let last year.

    Prior to our purchase, 2 units had been sold many years ago by the previous owner included as part of the sale was the 'right in perpetuity' to use 5 car parking spaces each, 10 in total. I am sure this also would have been factored in to the pricing of the units ....bottom line is, all this was done, they cashed out and sailed off.

    Now then, I am looking at all this as a new owner and thinking, how on earth does this perpetuity arrangement apply to me? As far as I am concerned, I need to be charging these freeholders for their car parking spaces as they are parking on our land!

    The exact wording on the transfer documents read -

    The right in perpetuity to use the car parking
    spaces on the Plan for the parking
    of roadworthy private motor vehicles contained
    within the Transferrors Retained Land.

    Has anyone got any prior experience with this issue?

    I have raised this with our legal team as well but all perspectives certainly help in me getting my head around this issue.

    Many thanks and warm regards

    Mr Ali


    You need to establish if this is a contractual right or a land based right (sorry I don't know the legal term). If it is land based then your purchase document either identified the right or carved it out of what you were buying and if it did not then you have a right to sue the seller (albeit the seller now has no assets) or your lawyer for not spotting it on the review of title. If it is a contractual right (eg license) then if this is not transferred to you, you can in effect ignore it and the occupier will sue the seller for breach of contract for what that's worth. If it transferred to you then you need to renegotiate your contractual obligations.

    If they have a general right to 10 unspecified spaces then its a license or a contractual right. I dont believe you can get a land based right with unspecified space.

    All this legal stuff is not nice so best to open up a conversation. The key I suspect is your ability to manage the site so you can enforce your will.

    Obviously I am not a lawyer and I feel I am straying into legal territory so perhaps the best response should have been call "another" property lawyer.


    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)