F-01 · Title Restrictive covenant prohibits commercial use ~£0–£18k
Recommended action
Reconsider if HMO conversion is core to strategy. Indemnity policy unlikely to cover.
Source
Title TGL14872, entry C-04
Sample report
42 Mortimer Crescent, NW6
Bid posture
Bid with conditions. Two critical findings should hard-cap your ceiling.
Quantified exposure
£55,325
Worst-case across 5 items
Findings reviewed
14
2 critical · 4 conditional
Turnaround
28h
Delivered 19h before lot
Executive summary
The pack is broadly clean on title and searches but contains two material issues that should hard-cap your bidding ceiling: a restrictive covenant against commercial use, and a 5% retention of sale proceeds by the vendor for 12 months. Standard auction contract incorporated without unusual modifications.
For a buy-to-let strategy with a 5-year hold, the property is bid-able. We do not recommend HMO conversion given the covenant. Recommended ceiling reflects a conservative reading of the retention clause and the absence of a drainage search.
By category
Title
4 findings
Contract
3 findings
Searches
3 findings
Planning
2 findings
Lease
2 findings
Findings (14)
Every clause in the legal pack, ranked. Each finding is paired with a recommended action and a citation back to the source document.
F-02 · Contract Vendor retains 5% of sale proceeds for 12 months £29,250
Recommended action
Build into bid price ceiling. Reduces effective bid headroom by ~£29k.
Source
Special Conditions §11(b)
F-03 · Searches Drainage & water search not provided £75
Recommended action
Order pre-completion (~£75) or accept the risk. Property age suggests mains connection.
Source
Searches index, missing
F-04 · Contract Vendor liability cap on title issues at £25k variable
Recommended action
Below-market cap. Negotiate up or accept limited recourse.
Source
Special Conditions §14(c)
F-05 · Planning Loft conversion lacks building regulation sign-off ~£2–£8k
Recommended action
Pre-completion building reg search; potential remedial works.
Source
Replies to enquiries §12
F-06 · Lease 7 years remaining on freeholder ground rent escalation noted
Recommended action
Fixed escalation at RPI+1%. Below market but rising.
Source
Lease cl. 4(2)
F-07 · Title Title absolute, no charges or restrictions —
Recommended action
No action.
Source
Title TGL14872, A & B
F-08 · Searches Local authority search clean —
Recommended action
No action.
Source
LLC1, CON29
F-09 · Searches Environmental search — no contamination flagged —
Recommended action
No action.
Source
Envirosearch p.4
F-10 · Contract Standard auction contract incorporated unmodified —
Recommended action
No action.
Source
Contract front-sheet
F-11 · Title Boundaries match Land Registry plan —
Recommended action
No action.
Source
Plan v. RICS measure
F-12 · Lease No tenancies in occupation; vacant possession on completion —
Recommended action
No action.
Source
Vendor confirmation
F-13 · Planning No planning enforcement notices —
Recommended action
No action.
Source
CON29 §3.6
F-14 · Title No adverse possession claims —
Recommended action
No action.
Source
Title TGL14872
Quantified financial exposure
Findings with a measurable cost or contractual exposure, ranked by severity.
Vendor 5% retention exposure
Special Conditions §11(b)
Restrictive covenant — adaptation cost
Title TGL14872, entry C-04
Loft conversion — building reg remediation
Replies to enquiries §12
Vendor liability cap below market
Special Conditions §14(c)
Drainage & water search (post-completion)
Searches index, missing
Total quantified exposure (worst case) £55,325
Information missing from the pack
Documents, certificates and replies that are absent, incomplete or non-committal — and how each gap affects your position.
1 critical 5 conditional 1 resolved externally
Drainage & water search (CON29DW)
Searches
Searches index — absent
Cannot confirm mains drainage. Lender may decline; refurb costs uncertain if private system.
Recommended Order pre-completion or accept exposure.
Replies to enquiries — Part 2 (Section 12)
Title
Replies, §12, "not known"
Vendor declines to confirm whether the loft conversion has Building Regulations sign-off.
Recommended Press for indemnity policy or sign-off; price into bid.
Service charge accounts (last 3 years)
Lease
Lease pack — only current year provided
Cannot assess service charge history or sinking fund position. Affects yield and exit.
Recommended Request from managing agent before bid.
Confirmation of permitted development at rear extension
Planning
Planning file — no LDC referenced
Extension built 2019 — no certificate of lawfulness on file. Risk of enforcement window still open.
Recommended Apply for retrospective LDC or insure.
EICR (Electrical Installation Condition Report)
Compliance
Compliance index — missing
Required for any tenanted use. Not in pack — cost to remediate is unknown.
Recommended Inspect post-completion; budget £350–£2,500.
EPC certificate
Compliance
EPC register lookup — verified
EPC referenced in particulars but copy not attached. Confirmed valid until 2031 on register.
Recommended Add copy to file. No remediation needed.
Copy of Land Registry filed plan referenced in covenant entry
Title
Title TGL14872, entry C-04
Covenant references a 1962 plan — not appended. Boundary of restriction unclear.
Recommended Order plan from LR before bid.
Questions for the seller
Targeted enquiries to put to the seller’s solicitor before exchange. Each is tied to a specific finding or gap in the pack — answers materially affect bid price or whether to proceed.
1. Title & ownership
3 enquiries
Q1.1
Please confirm whether the loft conversion has Building Regulations completion certificates and provide copies.
Why ask: Replies §12 currently states "not known". Affects warranty, lender appetite and resale.
→ F-04
Q1.2
Please supply a copy of the 1962 filed plan referenced in entry C-04 of the title.
Why ask: Restrictive covenant boundary cannot be assessed without it.
→ F-01
Q1.3
Confirm whether any indemnity policies are in place in respect of the title defects identified.
Why ask: No policy schedule attached; exposure transfers on completion.
general
2. Special conditions
2 enquiries
Q2.1
Please clarify the calculation basis for the 5% vendor retention under §11(b) — including release triggers, longstop date and arbitration.
Why ask: £29,250 of capital tied up for up to 12 months.
→ F-02
Q2.2
Confirm whether the vendor liability cap in §14(c) survives completion or applies only to pre-exchange representations.
Why ask: Materially changes recoverable damages on title issues.
→ F-04
3. Searches & compliance
2 enquiries
Q3.1
Will a CON29DW (drainage & water) search be ordered before completion at the vendor’s cost?
Why ask: Standard searches incomplete; lender condition.
→ F-03
Q3.2
Please supply the most recent EICR and gas safety certificate.
Why ask: Required for any tenanted use; remediation cost unquantified without report.
general
4. Lease & tenancy
2 enquiries
Q4.1
Please supply service charge accounts and budget for the last three years, plus current sinking fund balance.
Why ask: Yield and exit modelling depends on charge trajectory.
→ F-06
Q4.2
Confirm whether the head lease contains any forfeiture, restriction on assignment or alienation clauses materially affecting exit.
Why ask: Affects sub-letting strategy and disposal options.
general
5. Planning & use
2 enquiries
Q5.1
Please confirm the rear extension constructed in 2019 has either a Lawful Development Certificate or planning permission, and supply a copy.
Why ask: Without LDC, enforcement window may still be open.
→ F-05
Q5.2
Confirm there are no pending or threatened planning enforcement notices, and supply a copy of any planning correspondence with the local authority in the last 5 years.
Why ask: Material adverse fact for lender and resale.
general
Bidq prepares the enquiries pack ready for your solicitor or buying agent to issue. Responses received before bid should be re-attached to the report for a supplementary review.
Documents indexed
Every document supplied in the pack, indexed and reviewed against the Bidq diligence framework.
Auction-pack.pdf 14 docs 12.4 MB reviewed
Title-TGL14872.pdf Land Registry 420 KB reviewed
Searches-LLC1-CON29.pdf Local authority 1.8 MB reviewed
Special-conditions.pdf Vendor 218 KB reviewed
Replies-to-enquiries.pdf Vendor solicitor 512 KB reviewed
Lease.pdf Freeholder 1.1 MB reviewed
Bidq verdict
Bid with conditions
Amber postureThe pack is broadly clean on title and searches. Two material issues — a restrictive covenant against commercial use, and a 5% vendor retention — should hard-cap your bidding ceiling. Four further conditional items can be priced in or addressed via pre-bid enquiries.
Proceed if your strategy tolerates a 12-month retention and a covenanted residential use. Decline if HMO conversion is core to the thesis.
Quantified exposure
£55,325
Findings
14
2 critical · 4 conditional
Confidence
High
Pack 92% complete
Pre-bid checklist
Six actions, ranked. Work through these before the lot opens.
Resolve restrictive covenant on commercial use
Reconsider if HMO conversion is core to the strategy. Insurance unlikely to cover a use change.
F-01 · Title TGL14872, entry C-04
Price the 5% vendor retention into your bid ceiling
£29,250 of capital tied up for up to 12 months. Adjust funding cost and IRR.
F-02 · Special Conditions §11(b)
Order pre-completion drainage & water search
£75 cost; lender condition. Or accept the risk in writing.
F-03 · Searches index
Confirm Building Regulations sign-off on loft conversion
Vendor "not known". Press for sign-off, indemnity policy, or price the worst case.
F-04 · Replies §12
Confirm vendor liability cap survives completion
Materially changes recoverable damages on title issues.
F-05 · Special Conditions §14(c)
Issue enquiries pack to seller before bid
11 targeted questions ready to send. Re-attach responses for supplementary review.
Questions for seller section
Your report
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