Flat is being sold to cash buyers due to dodgy planning?

Crosby

Hi guys

There is a flat being sold very cheap but only available to cash buyers as no mortgage will be secured on it as it has some problem either with planning or planning permission? Estate agent doesnt really know much himself, will be going there today and try to get more info.

I am loving the flat, I have a house already with some equity which I will be releasing in order to buy this flat (which I am then intending to rent out).

I have a few questions however, how dangerous is it to buy a flat with dodgy planning? I will be giving more info on this after 12pm today after i have spoken to the estate agents. And also, the equity is not enough for the purchase, I am 13k short and am thinking of applying for a bank loan on this one.

It all seems a bit scary, i have not done anything like this before, I am dreading to buy a flat I know for sure i will have problems to sell (but the fact that its cheap and will be generating rental income for hopefully some time is quite appealing), i am also worried that I will be up to my eyeballs in debt in case I dont find any tenants.

Please can you comment on the situation? any posts are welcome.

thank you

CLAPTON

first step is to find out the facts.

poppysarah

It might have massive debt on it if communal work has been done, or a tiny lease.

Go into this prepared to waste a lot of money on solicitors and come out possibly with nothing.

Richard_Webster

If there is something like this wrong it will be far too technical for the estate agents to give you a satisfactory explanation and you will have to get a solicitor to look at it all for you. I know it means spending money but you can't decide about things like this with half information.

Crosby

Thanks guys, what kind of comunal work, poppysarah? I have a massive list of questions here already. I will defo be engaging solicitor when i decide to go ahead, however need all the help I can get now, before i go and see the estate agents and give them my decision

Running_Horse

Dodgy Planning? Worst case scenario they don't have permission for flat conversion and council will demand property returned to original condition. You could end up with nothing. It's cheap for a reason, but feel free to throw your money down the drain.

jenid

Why don't you call the local planning department for more info on the planning issues with the property?

Owain_Moneysaver

There was a case on telly where a developer laid out the site wrong and built a whole new block a few metres in the wrong position.

Retrospective consent was refused and the whole block had to be flattened.

Avoriaz

Crosby wrote: »

..There is a flat being sold very cheap but only available to cash buyers as no mortgage will be secured on it as it has some problem either with planning or planning permission? Estate agent doesnt really know much himself, will be going there today and try to get more info.

I am loving the flat, I have a house already with some equity which I will be releasing in order to buy this flat (which I am then intending to rent out).

Are you loving the flat, or are you loving the cheap price?

It is cheap for a reason.

Be extremely cautious and get all the facts and take advice before spending any money.

Crosby

Hi Guys

The flat is in the blocks of Purpose built apartments, so not converted. I am just awaiting a HIP report so will give you details in a minute

seabright

Dodgy lease? Terrible managing agents? Title has problems? Planning or building regulation issues (even if it's purpose built)? Blighted by neighbouring land?

The list is long of what could be wrong and may well not be apparent from the HIP.