Help! Offer accepted but local authority search reveals planned future major works

Fire_Fox

barrybarryr wrote: »

Surely that applies to any purchase for anyone and not just in this case?

My advice applies to any purchase where the buyers indicate that they are wiping themselves out financially, and it is far from the first time I have posted that 'little gem'. Support for mortgage interest doesn't kick in until month four of benefits, it doesn't cover buildings insurance or major works and may not kick in at all if one party is still on a good wage.

wuzzlefazza

We wouldn't be wiping ourselves out financially but regardless of one's financial position, a £15k bill isn't exactly nice to swallow at any time! We're saving up to get married/start a family too.

The annual service charge to the council is £400 (this covers building insurance) and ground rent is £10, which is reasonable.

Drodough: The property was on the market for 1 week with significant interest from potential buyers as it's a 5 min walk to the Tube Station, in close proximity of a main road with many amenities and because it's a newly refurbished period conversion.

Before our offer was accepted the previous offer which the vendor hadn't accepted but was considering (as the flat had only been advertised for 4 days at that point) was £325k so we went in with £3k more. Of course this was what the EA told us so we do take it with a pinch of salt. Despite this, during our viewing there were 3 other people looking too.

Strangely enough, it was never communicated to me that 1 of 3 flats in the building is being used by the council as a LA flat. I only found out when I asked the question to my solicitor out of curiousity and she phoned the council to ask!! (The other 2 are privately owned and were previously purchased under a 'Right to Buy' scheme). I guess this isn't something the vendor/estate agent is obliged to divulge?

Drodough

Well, if there has been significant interest, you may find the seller is unwilling to negotiate. But it doesn't hurt to ask- anything you get is better than nothing at all! by the sounds of things it's a desirable property in a good location, and the interest shown is encouraging from a resale point of view. Defintiely worth negotiating on the 15k works- but after negotiations (whether they prove fruitfull or otherwise!) you will have a difficult decision to make and I don't envy you!

As for finding out about one flat containing LA tenants- I'm not sure but can't imagine there would be any obligation on the part of the landlord or EA to part with this info. In fact- I'm surprised they even can due to Data Protection! But in all honesty I know very little about leasehold properites- living much further North I am fortunate enough to have always been able to buy freehold properties, which makes things much easier!

One other thing- have you been looking for long? Is it possible another property may come up that is similar but without these issues? Is it worth a few calls to some agents to ask what else is coming up that may be of interest before you take this purchase to the next stage?

kmmr

Dr.Shoe wrote: »

328K is a lot of money for a flat in a converted house... especially one that "needs" 15K to bring it up to Decent Homes standard. I really would look elsewhere, look for a new build flat as the developers are desperate to shift them and might pay the first 2 years interest and other costs. Even in the same neighbourhood you could probably get far more bang for your buck.

Personally I think you're being ripped off in any case.

That is a perfectly normal price for a London flat! I assume it is in London. And those who talk about freehold have clearly not looked in London either. Most flats are leasehold, and most houses are old and need exterior work.

You need to pay that to get somewhere decent, in a decent area. And I don't care how much you have saved, another £15k is always a painful amount to plan for!

kmmr

don't suppose you could send (or PM) a link to the property? Can give you a slightly more informed opinion on price/location?

Fire_Fox

kmmr wrote: »

That is a perfectly normal price for a London flat! I assume it is in London. And those who talk about freehold have clearly not looked in London either. Most flats are leasehold, and most houses are old and need exterior work.

You need to pay that to get somewhere decent, in a decent area. And I don't care how much you have saved, another £15k is always a painful amount to plan for!

Rubbish: my brother paid £250K for a flat in Wimbledon in 2007.

wuzzlefazza

It's a 2 bed flat in Hampstead, NW3, just off Finchley Road. I was talking to the estate agent again the other day as we went back to measure the place for furniture and enquired how busy he was - the response was that there's a lot of buyers but no sellers so it kind of seems the opposite of the market norm for the area.

bitsandpieces

Up until exchange, you can negotiate as you want on price (or walk away). Not unusual to ask vendor to pay towards these charges - whether they can be persuaded to do so or not is another matter.

As the lower service charge goes, presumably £400 doesn't include a sinking fund for significant works? Saying £1k/year on service charge and then getting hit with a £15k bills every 15 years, say, would both leave you facing similar charges overall... Of course, some private management companies are incredibly bad and some councils are better than others (have you looked into the rep of this council?) It's something budget for, though - buildings do need regular maintenance, and you will have to pay for it.

LA tenants can have a bad rep. However, private tenants and homeowners can also be horrible neighbours and some councils are good at dealing with 'problem' tenants (though many aren't). Some LA tenants, of course, can be lovely neighbours.

kmmr

Fire_Fox wrote: »

Rubbish: my brother paid £250K for a flat in Wimbledon in 2007.

What is it worth now?

poppysarah

If it worries you then don't buy a flat.

Serious a flat for how much?

Welcome to planet insane.