Who is responsible for upcoming works when buying

twink1108

Hi,

I am currently in the process of buying a flat to rent. When undergoing the searches, I was originally told that there were imminent works coming up on the outside of the property. On the forms, the lady who currently owns the property has ticked yes to say that there is work coming up soon. However, I am now being told that there is nothing coming up, and I was not previously given any estimate on costs, so if there are any unexpected surprises, I don't even know what sort of figures I could be looking at.

My surveyor has suggested not to proceed until I know costs, however my solicitor is eager to proceed in the next week.

If there are imminent works, who is likely to be responsible for this, given the above information?

Thanks for any suggestions.

jbainbridge

I'm no expert but I would think once you complete it will be you. I think I would be making sure of the position before going ahead, not sure what planet your solicitor is on!?

CLAPTON

who is telling you whether there is or is not any upcoming work?

PasturesNew

If there is work, you will be liable.
You need to find out how much.
It might be that there's already some "pot" of money for this; or maybe not.
You need the answers.

Do not proceed until you have absolute answers, clearly, in writing.

twink1108

Hi all, thank you for your replies, sorry, I made a mistake earlier, on the form the seller ticks asking whether any works are due to take place, seller has ticked, no, (so many forms sorry)but however when I spoke to management company two months ago at the beginning of the purchase, they told me that the interior and exterior are due to be done and was hoping to get these done by Christmas and spring, and they were looking into quotes. However, now Their answer in the questions to them, is that interior and exterior and exterior works are due, however no quotes have been on obtained yet. I have no idea what I will be expected to,pay, and as you all say, I will be responsible once I've bought the property. Am I being unreasonable though, not just signing without knowing, I beleive the seller, who is an elderly lady has now told the agent, who has tried to make enquiries, there's nothing to be done, works wise and something about, read the small print.. Sorry for long post. Thank you for reading.

twink1108

That's the other thing, I was told each flat contributes, but as say, I thought it came out of the reserve pot.

egoode

That's assuming there is a reserve pot, it will depend entirely on how the block is managed but not all leasehold properties will have a reserve fund. However I believe you should have been sent the management accounts as part of the buying process and that should show if there are funds available for building works or not. If there are funds available then the current owner has already contributed and I wouldn't expect anything else from them. If there are no funds then you will have to pay for them once you own the property.

I'm not sure you can really ask for a discount on the place given that no quotes have been obtained yet for the works so you need to decide whether to walk away now or proceed and just hope it's not too expensive. I would be more worried if it was a roof they were trying to replace as that could be very expensive but also remember you will only need to pay a portion of the costs along with all the other flats. If the works are more a bit of paint and a tidy up then it's unlikely to cost very much.

twink1108

There is a reserve fund, but I don't have this years accounts, as they're still being done apparently, but the last accounts show a shortfall of 1700, due to catching up from previous works..management company still haven't got back to my sol with the latest figures. This particular estate of houses have varying amounts of flats in each block.. In my particular block there are only four flats, so I suppose that's what's what's a worry, if the works were expensive. Only four to split between, instead of say 15 or so. Thanks for your reply

G_M

* If there is a reserve fund/sinking fund, it will come out of that.

* if there is not, each current leaseholder will be billed

* if quotes have not been obtained yet, neither the leaseholder/seller, nor management company, can tell you how much it will cost.

* when the work is done, it is you who will benefit from the improvements, not the seller

* whether you ask, or insist,on a price reduction, and how much, is up to you

* whether the seller agree, is up to them

* another option is for one of your solicitors to hold an agreed amount of the purchase price after Completion, until the Works are completed. Once you know what the cost is, that amount could be returned to you and the balance given to the seller.