Leashold purchase that may need structural work

KatW

I am a 1st time buyer looking for a bargain 2 bed flat in London that I can do up over time. I have found a property that on the face of it looks perfect. 2 beds, garden, needs a new kitchen and redecorating but everything works so I could move in straight away and do it up bit by bit.

The only problem is that the floors on the 1st floor (its a 1st and 2nd floor flat) all slope significantly. I suspect that there is a structural problem and that the joists would either need to be jacked up or replaced completely. I could probably think about budgeting for this if the current owner accepted a low enough offer.

My question is: What happends about the shop below if the floor joists need to be replaced? Obviously that would mean them losing their ceiling for a while too. Who would be liable for their costs/inconvienience? Would the leaseholder on the shop and/or the freeholder be liable to pay some of the costs of the repair? What about building insurance?

I'd like to get a handle on these issues before even thinking about instructing a surveyor to work out what needs to be done or making an offer.

Thanks,

Kat

keystone

I think you should just walk away and find another TBH. Could cost you a small fortune.

Cheers

phill99

Its not an insurance claim and they would more than likely laugh at you when you put a claim in.

You don't need to jack any joists up. You need to install 'firings' to pack the floor up and make it level.

Fire_Fox

Welcome!

Are you sure the flat is safe and legally inhabitable? The property will be unmortgageable if not, you certainly would not get a mortgage for the thousands of pounds of major repairs. Repairs and maintenance are not insurable and the freeholder does not normally contribute. A leaseholder cannot make structural alterations to a flat without the freeholders written consent, given the circumstances I suspect the freeholder would have to complete the work and charge it to the leaseholders. It would be a complete nightmare to enforce this as, in most instances, there is a complex and lengthy consultation process and the shop below could lodge a formal objection. The flat may be uninhabitable for the weeks or months it takes for the work to be completed - do you have somewhere else to live?

This website is absolutely excellent, I would suggest having a thorough read before considering a leasehold property. Also be sure to appoint a solicitor who is experienced in leasehold conveyancing AND leasehold disputes. I recommend this from bitter experience and having advised many people on the MSE house buying board. Quite honestly that flat sounds a million miles from perfect; even if you can get the purchase to go through you could easily end up stuck with an unsaleable money pit. More likely is you spend thousands on a survey, structural engineers report, legal fees, mortgage arrangement fee only for this to fall through. Also note that leaseholders are legally liable to contribute to repairs and maintenance regardless of their ability to pay - if you are made redundant, fall ill or don't have enough savings you may find yourself in court.

diable

Its above a shop don't touch it.

Jebrelli

diable wrote: »

Its above a shop don't touch it.

I would strongly agree with this. After looking at lots of flats last year and taking some advice about one that backed onto a commercial unit, I would always go for a flat in a wholly residential building.

You may require specialist buildings insurance, you probably won't get a good mortgage deal (if you need a mortgage), and living above a shop is no picnic - deliveries at unsociable hours of the day, lots of people coming and going, and the shop may change use to something less desirable like a bar/ fastfood place. You could then have huge trouble selling it on.

Also as Fire Fox says, leaseholders can't change any structural aspects of their home without the freeholder's consent - and that's a bit of a gamble as the freeholder could be a pain in the a**e!

Good luck. I think you can find something better.