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Reducing house price at last moment before exchange
Comments
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I would NOT spend over 500 K on a leasehold flat anywhere . As a comparison I have a freehold house in E17 worth about 275-300 K0
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Hi dominoman
It isn't unusual to reduce an offer when a survey shows up unexpected problems.
However, I suspect that your mortgage co valuer may raise a big red flag on a property that needs £60k of structural work - so you may not be able to proceed anyway.
Beyond that, as ftb101 says, check the lease to see who is responsible for the repairs - the leaseholder (i.e. you) or the freeholder.
If it's you, is the flat really worth £595k (£535 + 60k)? Do you have the extra £60k cash available?
If it's the freeholder, he/she will recharge a percentage to you (check the lease to find out the percentage), but...
...the freeholder may be uninterested in getting the work done (or even be absent); or
...other leaseholders may be unwilling or unable to pay their share.
In other words, it could get very messy (and costly) - involving solicitors etc.
If you're not daunted by this, that's fine. But if I were taking this on, would expect a sizable discount on the price to compensate for all the potential hassle.0 -
Hi dominoman
It isn't unusual to reduce an offer when a survey shows up unexpected problems.
However, I suspect that your mortgage co valuer may raise a big red flag on a property that needs £60k of structural work - so you may not be able to proceed anyway.
Beyond that, as ftb101 says, check the lease to see who is responsible for the repairs - the leaseholder (i.e. you) or the freeholder.
If it's you, is the flat really worth £595k (£535 + 60k)? Do you have the extra £60k cash available?
If it's the freeholder, he/she will recharge a percentage to you (check the lease to find out the percentage), but...
...the freeholder may be uninterested in getting the work done (or even be absent); or
...other leaseholders may be unwilling or unable to pay their share.
In other words, it could get very messy (and costly) - involving solicitors etc.
If you're not daunted by this, that's fine. But if I were taking this on, would expect a sizable discount on the price to compensate for all the potential hassle.
The absent freeholder bit does worry me. The owner of the rest of the block is a landlord who has let out the flats, so he has little to gain by doing any work that would make the building more aesthetically pleasing - and even the more urgent work he could argue isn't needed.
I am going to get the details from my solicitor and speak to the freeholder. If they are not willing to do the work, or share costs, then I'll walk away for sure. If they are happy to share costs then I'll go back with an offer that takes the work into account.0 -
. In total he thinks it will cost around 60k to do the work needed. He also told me to not bother with it and keep looking.
Now, I want to reduce my offer price.
You paid the surveyor for his advice - probably a good idea to take it!...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
It's the freeholder (or Management Company if there is one) that matters.....The owner of the rest of the block is a landlord who has let out the flats, so he has little to gain by doing any work that would make the building more aesthetically pleasing - and even the more urgent work he could argue isn't needed.
The lease will tell you who is responsible for the roof & beams - it is unlikely to be the leaseholder (you).
It will also tell you what proportion of the repairs (if any) the leaseholder must contribute.
Your costs are unlikely to be anything like £60K. More likely 60,000 / number of flats in building.0 -
Half a million quid for a leasehold in TOOTING? Are you mad?
And that's not even factoring in at least £60k's worth of repairs! For that sort of money I'd be looking for a freehold. This place is going to be a money-pit. Before you even consider that most of the other flats in the development are rentals. Barge-pole. Do not touch with a.
Listen to the Surveyor! Why pay them good money and then ignore their advice?0 -
BitterAndTwisted wrote: »Half a million quid for a leasehold in TOOTING? Are you mad?
And that's not even factoring in at least £60k's worth of repairs! For that sort of money I'd be looking for a freehold. This place is going to be a money-pit. Before you even consider that most of the other flats in the development are rentals. Barge-pole. Do not touch with a.
Listen to the Surveyor! Why pay them good money and then ignore their advice?
Not quite sure what you're trying to say there B&T
You might need to come off that fence :rotfl: 0 -
BitterAndTwisted wrote: »Half a million quid for a leasehold in TOOTING? Are you mad?
Listen to the Surveyor! Why pay them good money and then ignore their advice?
I agree.....that's what you're paying for.
I would walk.....blimey for half a million I would buy a lovely detached residence and commute with the money I'd saved 0 -
Half a million buys you a 14 bed 19th century house with planning to build a detached house on the grounds where I live....We’ve had to remove your signature. Please check the Forum Rules if you’re unsure why it’s been removed and, if still unsure, email forumteam@moneysavingexpert.com0
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Running_Horse wrote: ȣ535,000 for a south London flat? Wow.
.
I don't see a problem with that if it's Wimbledon village (or even down the hill a bit)
but Tooting - I agree entirely.0
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