Common parts smell like damp - should I still buy?

clhs

Hi, all.

After months of looking I have finally found a flat I like. I put in an offer and, after some negotiation, agreed a price with the vendor.

I got my mortgage agreed in principle on Saturday morning and my broker was going to send the paperwork off this morning. On Saturday afternoon I arranged to go and view the property again to measure up.

What struck me when I went in is that the common parts (it's an Edwardian conversion: six flats share one communal hall and stairway) smell really rather damp or musty. Also the stair carpet is extremely threadbare and it all looks a bit unloved.

Apparently the managing agents (whose name I haven't been able to establish from my estate agent) are paid £1,200 a year from each flat (it's share of freehold but we all must pay the agent to maintain the building) but I honestly don't know what they do for this money.

The flat itself is very nice and I could not smell damp whatsoever. So should I be worried about the smell in the common parts? I've never bought a flat before so I am not sure if it's normal to have cold feet or whether I should listen to my reservations about the communal areas.

I need to tell my mortgage broker whether I am 100% sure or not. If yes, she will instruct a surveyor and then I need to pay my lawyer £250 as a retainer. If I don't go through with the sale then I will have lost the £900 it costs for a survey (plus legal fees) and then I can't afford to buy a new place. So I am weary of just casually instructing the surveyor.

Any advice would be gratefully received as this is all new to me.

devotee

Well you need to do more digging. Find out form the EA and vendors about maintenance, what's being done, what's not being done, maybe they were paying for the new roof or windows so the common parts took a back seat. Ask the neighbours. And find out who is the managing agent. Don't forget that s/c will include buildings insurance.
Surveyor will tell you pretty much what you've seen yourself about the common parts and he will tell you to check it out.
Explain to the EA that you like the property but you'd need more info about the common parts and maintenance before you commit to buy. Tell them that the common parts don't look well maintained so ask for the explanation.

clhs

Thanks, Devotee.

I've aked my EA three times now for details of the managing agent, but each time I've been frustrated. My EA just recommends that my solicitor get this information from the vendor's solicitor at some point but I don't have the funds for legal fees and surveys for a flat that I am not going to buy, sadly. So I think I will err on the side of caution and walk away. That way the worst that happens is I lose a flat that might have been very good. But better that then buy one that I can't sell in the future because of damp, an unhelpful managing agent and a hallway that looks like a scene from Resident Evil.

Incidentally we had tried to speak to the other flat-owners but the only person who has been in whenever we have called has been a very helpful guy in the flat above, but he only rents, so he says that his contact with the agent is nil.

devotee

I think you've made the right choice to walk away. EA should be more helpful so tell him you would like to know more as that's a deal breaker for you, so that's just cost him the sale and make sure you tell him that!

clhs

Actually he just called me in reply to my email saying I think I need to pull out. He was really rather belligerent and said that my solicitor should be getting the details of the managing agent and that the vendor isn't obliged to provide them.

I might be looking at this wrong but if you are asking someone to pay £250k for a flat, and then they also have to pay £1,200 a year for life, surely you could at least provide the details of to whom the £1,200 is being paid? If I were selling my flat I wouldn't have a problem giving that information at the outset.

Oh, well, back globrix and rightmove for me, I think!

devotee

clhs wrote: »

He was really rather belligerent and said that my solicitor should be getting the details of the managing agent and that the vendor isn't obliged to provide them.

I suppose that's true, but when I was selling my flat and had questions about management fees I was ever so happy to clarify.
Same was when I was viewing, no one had no problems telling me the details.

So if vendor is not forthcoming I imagine that the building is not well maintained. Or they are not that bothered about selling. Badly maintain building will put many buyers off no matter how nice it is outside, so you are right to walk away.

G_M

It's not strictly within the EA's remit and yes, your solicitor would check this.

However a good proactive agent should do everything possible to facilitate the sale. Maybe it is a poor agent, maybe the vendor is not telling the agent. If the latter, why? does the vendor have something to hide?

These mid-size conversion properties with the freehold owned by the flat-owners can go one of 2 ways:
1) well run managemnt with all leaseholders involved, paying their share, and keeping maintenance costs down by cutting out professional money-making management companies and profit-driven freeholders
2) disfunctional management, with some leaseholders non-resident and renting out to tenants so not caring, not paying their share, and disputes over what maintenance work is needed, at what cost, and when

You have to find out which before buying for obvious reasons!

clhs

Brilliant, thank you, Devotee and G_M. Your advice is greatly appreciated.

And thanks for taking the time out of your days to give me some information on this. This site is full of great people!