Buying a property that was once owned by the Local Authority

mrkanamala

I am a first time buyer and in the final stage (about to exchange contract next week) of a 3 bed end of terraced house purchase. A recent report provided by the solicitor states that "The property was once owned by the Local Authority – inevitably there is a possibility that this could have an effect upon its marketability in the future. You are purchasing this property in full knowledge of that fact."

As far as I know current house owner bought the house from a private owner not from the Local authority.

I am bit worried about following points

Do I still worry about the marketability of the property in future?

Should I renegotiate on the price as I was not aware about this fact.

Any advice would be much appreciated

kingstreet

In some areas, housing is in such demand the LA former ownership is a non-issue. If it is an issue in your area, it may well have resulted in you getting the property at a lower cost than otherwise would have been possible.

Former LA properties tend to lie on larger plots and have bigger rooms and were built at a higher standard than many private new/recent builds.

Presumably, you checked out the area prior to making an offer and anyone buying in the future will doubtless do the same.

It's a warning to you to take care, and as long as you've done your homework it should be fine.

mrkanamala

Thank you very much for the response.

When I did a detailed valuation, it valued more than what I have offered so I hope I can go ahead with this property.

kingstreet

My next question would have been about the surveyor's valuation and that appears satisfactory. You appear to have been given the standard "former local authority property can suffer marketability problems" spiel and you need to see it for what it is - butt covering on the part of the surveyor or solicitor in question.

budgetdiyer

kingstreet wrote: »

My next question would have been about the surveyor's valuation and that appears satisfactory. You appear to have been given the standard "former local authority property can suffer marketability problems" spiel and you need to see it for what it is - butt covering on the part of the surveyor or solicitor in question.

Agreed.

I'd say that if you did not know that it was an ex local authority house, chances are buyers in the future would not and therefore it would'nt be a problem.

It would only really be a problem with a particularly snobby buyer, but actually in the right location i prefer many ex authority houses, generally solidly built and decent room / garden sizes.