reduction in market value of a flat if loft is not included?

user1168934

I am in the process of buying a leashold top floor flat which was advertised with access to a loft area. We have recently discovered that there is nothing in the lease about the loft and it seems like there is no document to say that we have the right to use the loft.
The loft is boarded and the only access is from inside the flat so in the general sense we can use it.

I am wondering whether we should pull out (and lose the conveyance etc paid so far) or try negotiating a lower price.

Does this situation affect the market value of the flat?? by how much??

BitterAndTwisted

No, it doesn't affect the market-value of the flat, unless you think it's been over-priced by giving the impression that the lease includes a leasehold of the loft-space. It's very unusual for a lease-hold flat to include ownership of a loft. You would have sole access, so you could choose to use it for storage and nothing more. My sister has a lease on just the same kind of property and not owning the roof-space precludes the ability to develop it for obvious reasons.

needabed

How much would that space be worth to you. Reduce your offer by that amount.

Jenniefour

It will have been priced to take account that the loft is not yours, so to speak, so I wouldn't worry about the price. Loft will belong to the freeholder.

Your solicitor will be able to determine who owns the loft space, and whether you have right of access. Right of access will be in the lease - you should be able to get a copy of it from the Land Registry, as far as I know.

user1168934

We are at the very last stages when we have found this out. I have seen the lease and my solicitor also tells me that there is nothing in the lease about the loft, it does not even say anything about the access.
I am ok with it being not in the lease but because it was advertised so openly with the loft etc I assumed there would be something which gives us the right to use it.

We are a bit stuck on last two issues and reducing offer will probably mean that the sale will fall through. Conveyance process has been painfully slow and the mortgage offer is about to expire so there isn't much room to move.

Is it a normal thing for top floor flats to use the loft for storage even though it is not in their lease?
Do you think I will have problems selling it like this in future?

pinkteapot

In reality you'll still be able to use it for storage. I owned a flat with the same sort of loft (not included in the lease) for five years. Had stuff up there throughout. The previous owner had left some of their junk up there.

If the freeholder/management company needs to do repair work to the building that has to be done from inside the loft, they will probably tell you to get rid of your stuff. But it's pretty unlikely that they'll set foot in it.

bouicca21

My daughter has a similar flat. She doesn't own the loft, but no one else can get access to it, so she is the only person able to use it - and does. It never occurred to us that this could be a problem or affect the valuation.

leanne2901

user1168934 wrote: »

I am in the process of buying a leashold top floor flat which was advertised with access to a loft area. We have recently discovered that there is nothing in the lease about the loft and it seems like there is no document to say that we have the right to use the loft.
The loft is boarded and the only access is from inside the flat so in the general sense we can use it.

I am wondering whether we should pull out (and lose the conveyance etc paid so far) or try negotiating a lower price.

Does this situation affect the market value of the flat?? by how much??

are you my other half!? this is our situation exactly. We have now gone back to the vendor and said that we will give the asking price still as our lender has not mentioned the loft in their valuation. However our solicitor has made us wait another week while she 'dots the i's and crosses the t's" and informs the bank that the loft is not included in the property. Not having a loft isn't a problem for us - we did plan to build into it in the future when we need a second bedroom but now we will look at moving instead. The problem in our area is that it is very expensive to live close to the town, especially to have a parking space as we live near to the station. And the EA has advised that the value of the flat will have increased now as we have been in the process for so long!
I hope you get something sorted soon
L x

user1168934

leanne2901 wrote: »

are you my other half!? this is our situation exactly. We have now gone back to the vendor and said that we will give the asking price still as our lender has not mentioned the loft in their valuation. However our solicitor has made us wait another week while she 'dots the i's and crosses the t's" and informs the bank that the loft is not included in the property. Not having a loft isn't a problem for us - we did plan to build into it in the future when we need a second bedroom but now we will look at moving instead. The problem in our area is that it is very expensive to live close to the town, especially to have a parking space as we live near to the station. And the EA has advised that the value of the flat will have increased now as we have been in the process for so long!
I hope you get something sorted soon
L x

OMG - it did not even occur to me that the mortgage valuation may have included the loft in their valuation. I am going to check the mortgage approval documents.
It does sound like we are talking about the same property :-)

leanne2901

user1168934 wrote: »

OMG - it did not even occur to me that the mortgage valuation may have included the loft in their valuation. I am going to check the mortgage approval documents.
It does sound like we are talking about the same property :-)

I would check them - luckily ours just stated "1 x bedroom, 1 x bathroom, 1 x kitchen, 1 x living room" etc - it didn't mention the loft at all and my solicitor agreed, so for the sake of 7 months waiting and time, and a lovely maisonette - we just agreed to stay at the same price! Good luck!

egoode

leanne2901 wrote: »

we did plan to build into it in the future when we need a second bedroom but now we will look at moving instead.

There is still a possibility of you building into the loft but you would have to negotiate with the freeholder to buy the leasehold to the loft space and they will also have to approve your plans to convert it.