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

puddy

http://www.rightmove.co.uk/property-for-sale/property-22266331.html?minPrice=325000&maxPrice=350000&displayPropertyType=flats&oldDisplayPropertyType=flats&pageNumber=1&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DREGION%255E85301%26insId%3D2%26minPrice%3D325000%26maxPrice%3D350000%26displayPropertyType%3Dflats%26oldDisplayPropertyType%3Dflats


http://www.rightmove.co.uk/property-for-sale/property-21017884.html?minPrice=325000&maxPrice=350000&displayPropertyType=flats&oldDisplayPropertyType=flats&pageNumber=1&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DREGION%255E85301%26insId%3D2%26minPrice%3D325000%26maxPrice%3D350000%26displayPropertyType%3Dflats%26oldDisplayPropertyType%3Dflats

puddy

http://www.rightmove.co.uk/property-for-sale/property-25803440.html?minPrice=325000&maxPrice=350000&displayPropertyType=flats&oldDisplayPropertyType=flats&pageNumber=2&backToListURL=%2Fproperty-for-sale%2FWillesden-Green.html%3FminPrice%3D325000%26maxPrice%3D350000%26displayPropertyType%3Dflats%26oldDisplayPropertyType%3Dflats%26index%3D10

http://www.rightmove.co.uk/property-for-sale/property-26665391.html?minPrice=325000&maxPrice=350000&displayPropertyType=flats&oldDisplayPropertyType=flats&pageNumber=2&backToListURL=%2Fproperty-for-sale%2FWillesden-Green.html%3FminPrice%3D325000%26maxPrice%3D350000%26displayPropertyType%3Dflats%26oldDisplayPropertyType%3Dflats%26index%3D10

phlash

carefullycautious wrote: »

I cant believe what I am reading on this thread.

people saying that they would not touch this flat due to one flat being a LA Tenant. Sooo what has happened to the other two who were tenants but have used their right to buy? Have they suddenly become respectable owner occupiers and not the two headed monsters they were previously as council tenants.

The bigoted stereotypical assumptions of people never cease to amaze me.

Sorry for the rant op. I hope you make the right decision based on your needs. There is also the right after a couple of years to buy the freehold and manage yourselves. Do take Firefoxes advice and read the Leasehold web site

I agree with your sentiment, but many people think in this way. It is therefore made a legitimate consideration by default.

Drodough

carefullycautious wrote: »

I cant believe what I am reading on this thread.

people saying that they would not touch this flat due to one flat being a LA Tenant. Sooo what has happened to the other two who were tenants but have used their right to buy? Have they suddenly become respectable owner occupiers and not the two headed monsters they were previously as council tenants.

The bigoted stereotypical assumptions of people never cease to amaze me.

Sorry for the rant op. I hope you make the right decision based on your needs. There is also the right after a couple of years to buy the freehold and manage yourselves. Do take Firefoxes advice and read the Leasehold web site

I have no issue with LA tenants whatsoever, unfortunately the rest of the population do not share this view. And when it comes to buying property, I always think of re-sale. From personal experience, as soon as someone perceives a house to be ex-LA owned, or in amongst such properties, they immediately try to use this to get it for a lower price (or possibly even walk away in the case of some people!). This may not be right, but unfortunately it is something you have to take account of when you buy a property, as resale value/potential should always be a consideration if you ever plan to sell! So, until we wage a war on stereotypical biggots, and win, unfortunately it is something I personally would want to take into consideration.

Fire_Fox

kmmr wrote: »

Really?

http://www.home.co.uk/guides/asking_prices_report.htm?location=wimbledon&all=1

Average price of a flat in Wimbledon is now £313k. Average for a 2 bed (anything) is £322k. Sounds like he got a bargain to me!

I know there are lies d**m lies and statistics and all that... but it is pretty hard to argue that house prices in London haven't bounced above the lows of last year.

But this is a conversation probably best undertaken in the debate area!

It's a sweet one bedroom flat on a leafy street with smart shops. Just looked up his postcode and my brother actually paid £210. Looks like the upstairs flat sold for £215 in 2008: three more in the same complex sold for under £200K in 2009, no idea if any of these are studios.

kmmr

Fire_Fox wrote: »

It's a sweet one bedroom flat on a leafy street with smart shops. Just looked up his postcode and my brother actually paid £210. Looks like the upstairs flat sold for £215 in 2008: three more in the same complex sold for under £200K in 2009, no idea if any of these are studios.

Fair enough, but this is a two bed, in a highly desirable location - and while Wimbledon is lovely, it is much further out.

Anyway, I don't mean to argue. I just find it annoying when an OP asks for advice on a specific issue, and then is told they are just being an idiot for paying too much for a flat! Prices in London are ridiculous - accepted. But if they want to be here, then it's their choice, but it still ok to ask advice on other issues.

Fire_Fox

kmmr wrote: »

Fair enough, but this is a two bed, in a highly desirable location - and while Wimbledon is lovely, it is much further out.

Anyway, I don't mean to argue. I just find it annoying when an OP asks for advice on a specific issue, and then is told they are just being an idiot for paying too much for a flat! Prices in London are ridiculous - accepted. But if they want to be here, then it's their choice, but it still ok to ask advice on other issues.

I don't think you are being argumentative at all. At the start of our 'chat' I don't think we were aware the OP was buying in Hampstead which has put a different spin on things!

RacyRed

wuzzlefazza wrote: »

Hello all,

I'm new to this forum and hope some of you would kindly offer some advice on our current predicament. Any insight or advice would be very, very much appreciated.

We're FTBs and my girlfriend and I have recently had an offer on a flat accepted for £328k, £7k below the listed asking price of £335k. It's one of three flats in a converted redbrick Victorian terrace building where the freeholder is the local council. 2 of the flats (incl. the one we're about to purchase) are privately owned with the remaining 1 being used for local authority housing so I guess previously the whole building/all 3 flats were local authority.

Our solicitor recently came across a letter from the council dated Sep.'09 which revealed that within the next 5 years the council, as freeholder, would be looking to undertake major exterior renovations works on the building with an estimated cost of £15,000 per flat!

Of course this has come as a shock to us and we're not sure on whether to proceed with the purchase or not. There isn't any more info other than that there are no defined works planned yet but we really don't want to worry about being hit with a £15k bill somewhere down the line.

The flat was purchased by a developer in Oct. '09 (so he must have seen this major works letter) who has done a nice job as the interior is completely brand new and revamped (albeit we don't know what state it was in before) - he is the vendor now.

We can't really afford a potential £15k bill nor want the looming thought of potentially being hit by one. Also, even if the planned works don't happen by the time we plan to sell, potential buyers in the futures would surely be put off by it just like we are now?

Considering the vendor/developer purchased only 4 months ago he's looking at making a gross profit of £89k!

Is negotiating the asking price down £15k in light of this potential cost the way to go? Is there any 'standard practice' when something like this crops up during the conveyancing process? What would you do in this situation??

We'd be really grateful for your opinions and advice. Thank you in advance.

If the Section 20 letter has not been issued then the projected work has probably not been properly costed yet, it may not even happen.

Try to negotiate a price reduction, maybe meeting the vendor halfway?

I have had recent experience of an ex LA flat selling for just below market value with a Section 20 for £23k, which the buyer accepted responsibility for. Fortunately for the buyer the estimate was revised down by 1/3rd just a few weeks later. It really can go either way.

For those astonished at the prices, LA property in London is NOT the same as LA property in other parts of the country, especially in a period property.

wuzzlefazza, do read the link Firefox posted and also read the seling-on pack which the council provide to your seller, this will give all of the pertinant information relating to the management of the property. Your solicitor should have this, or be able to obtain it for you.

Good luck, it looks like a lovely home. And realy quite spacious, given the location and price.

wuzzlefazza

Hello everyone!

Thanks for all the advice offered here. I managed to negotiate £6k off the asking price, not a full 50% but nearly there and better than nothing! Pretty good considering the vendor wouldn't budge at first, then agreed on £3.5k, then £5k and then finally £6k. Negotiations lasted all day!

I'll be booking the building survey tomorrow so fingers crossed that all goes smoothly. I'm opting for the full building survey as it's a Victorian building - I understand that with older properties this the way to go?

BitterAndTwisted

Yep, full structural survey