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Does buyer or seller cover cost of cyclical works?
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mcsteely
Posts: 9 Forumite

I am selling my flat which is part of a shared block of flats under leasehold. I have agreed a sale price however there are due to be cyclical repair works to the building at some point this year and when they do, the burden of these costs will fall on the residents of the building. It is not confirmed exactly when these works will take place. When these works take place it is not confirmed if any cost will be passed onto the residents of the house or if it will be covered by the building’s sink fund.
The buyer would like to get money off the agree price since they may have to pay these costs if and when they are finalised. I think it should be the ongoing owner of the property who should pay for these work since they will get the benefit of any work that takes place however long they live there. In addition to this the works would protect the buyer’s capital investment while outgoing person would have no future interest in the repairs either way.
Does the buyer have any argument to have money taken off the price for these reasons?
The buyer would like to get money off the agree price since they may have to pay these costs if and when they are finalised. I think it should be the ongoing owner of the property who should pay for these work since they will get the benefit of any work that takes place however long they live there. In addition to this the works would protect the buyer’s capital investment while outgoing person would have no future interest in the repairs either way.
Does the buyer have any argument to have money taken off the price for these reasons?
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I am selling my flat which is part of a shared block of flats under leasehold. I have agreed a sale price however there are due to be cyclical repair works to the building at some point this year and when they do, the burden of these costs will fall on the residents of the building. It is not confirmed exactly when these works will take place. When these works take place it is not confirmed if any cost will be passed onto the residents of the house or if it will be covered by the building’s sink fund.
The buyer would like to get money off the agree price since they may have to pay these costs if and when they are finalised. I think it should be the ongoing owner of the property who should pay for these work since they will get the benefit of any work that takes place however long they live there. In addition to this the works would protect the buyer’s capital investment while outgoing person would have no future interest in the repairs either way.
Does the buyer have any argument to have money taken off the price for these reasons?
They will argue it their way and you will argue it yours. Somewhere along the line you'll have to come to a compromise or lose the sale.
You might be able to get away with him withholding part of the payment until the cost of the works are agreed but it is still up to you what you want to accept.0 -
As above, a retention might be in order. That way you can put their mind at ease without dropping the sale price. But at the end of the day you have to judge the risk of negotiating time against moneyChanging the world, one sarcastic comment at a time.0
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Surely it depends on the extent and likely cost of the works? It's a pity that the freeholder isn't being more transparent about likely costs and the extent to which these will be spread between the sinking fund and a one-off levy on leaseholders (I assume that the % split is defined in your lease in the case of the latter)?
And the extent to which the buyer will benefit from the 'inherited' sinking fund to which you have contributed during your time there. After all, you could argue that this 'credit' is your contribution to this year's and future repairs. For example, when we sold our last leasehold flat, the 6-unit block was about to be re-painted at a cost of about £15k. But since, (as treasurer of the small self-managed freehold company) I'd built the sinking fund up over the prior 6 years to the level where it could cover the whole cost, it could be argued I was 'in credit' and our buyer was well-pleased. Had there not been a clear funding plan in place, and if it were likely that they'd be facing a £2.5k bill weeks after moving, in I'd have felt it reasonable for me to cover at least a grand or two of this.
So, in the absence of facts, or if your freeholder is tricky or evasive with their replies to the buyer's solicitor's enquiries, I'd do a common-sense estimate to explain my offer, my suggested retention, or lack of it.0 -
Do you have any idea of the sort of cost involved? Are you talking an odd thousand, or could it be some huge sum to find like £10k?. Is it a massive job like roof replacement, or decorating windows or what?
I agree with you about the buyer paying as the work won't even have been done by the time you move out, let alone paid for - that would be long after. But your buyer is understandably having a go at getting a bit off as it is an expense unseen at the outset.0 -
P.S. I also know that if you have been paying in to a sinking fund without work being done to spend it, a seller is entitled to ask for a contribution towards the cash in the account from the buyer0
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