Bought leasehold flat and major work not disclosed

DaftyDuck

Quoting cattie:

I thought it was pretty standard that solicitors would inquire of freeholder's/managing agents

As I understand it, your solicitor should have instigated enquiries, on which you would be entitled to rely. In this case, it's as if the seller had instigated a survey - it's for their benefit. Your solicitor may well be at fault here.

37eeyore

I told the solicitor that and this is what she replied.
I confirm we did send a questionnaire to the seller’s solicitors on the 8th May for the freeholder/managing agent’s attention and the management pack we received was sent to you by e-mail on the 22nd May and I asked if you had any queries to let me know. The replies to solicitors’ enquiries confirmed that no unusual expenditure was scheduled as at 20th May and that any works would follow a Section 20 consultation (see paragraph 6.12 of the said form attached).
The responses we received gave no reason for us to raise any additional enquiries on these points.
It seems they didn't return her form, just sent the management pack. Should she have accepted this?

cells

afaik lots of council/ha flats will offer payment over 5 years and only charge modest interest rates (4-5% typically)

so your £23,000 bill can be paid for by ~£400 a month over five years

personally I wouldn't complain too much as that should not be £23k down the drain it should make the block and home a better place to live and also increase the value of the flat somewhat

37eeyore

I asked what happens if we can't pay. They said they would send two letters and then take us to court. They haven't offered extended payment terms. The work will not increase the value of the flat as we paid the market value. Knowing about the work in advance would have reduced the value of the flat, so we paid too much.

PasturesNew

cells wrote: »

afaik lots of council/ha flats will offer payment over 5 years and only charge modest interest rates (4-5% typically)

so your £23,000 bill can be paid for by ~£400 a month over five years

personally I wouldn't complain too much as that should not be £23k down the drain it should make the block and home a better place to live and also increase the value of the flat somewhat

Well, that makes it all right then. Only £400/month.

Many people don't have £400/month to start with that could go into paying such a bill .... not even the first month. Even paying mortgage, council tax, keeping the lights on and heating on 1 hour/day and eating cheap beans on toast they'd not have £400 left over each month.

tomtontom

37eeyore wrote: »

I told the solicitor that and this is what she replied.
I confirm we did send a questionnaire to the seller’s solicitors on the 8th May for the freeholder/managing agent’s attention and the management pack we received was sent to you by e-mail on the 22nd May and I asked if you had any queries to let me know. The replies to solicitors’ enquiries confirmed that no unusual expenditure was scheduled as at 20th May and that any works would follow a Section 20 consultation (see paragraph 6.12 of the said form attached).
The responses we received gave no reason for us to raise any additional enquiries on these points.
It seems they didn't return her form, just sent the management pack. Should she have accepted this?

This is standard practice in a leasehold purchase, your sol makes enquiries to the seller's sol who provides information from the freeholder. I don't believe they have been negligent. Having said that, with the amounts involved I would be taking all your paperwork to an independent solicitor, they may spot something that gets you some redress.

37eeyore

Who are you saying isn't negligent, the solicitor or the managing agent?

ognum

tomtontom wrote: »

This is standard practice in a leasehold purchase, your sol makes enquiries to the seller's sol who provides information from the freeholder. I don't believe they have been negligent. Having said that, with the amounts involved I would be taking all your paperwork to an independent solicitor, they may spot something that gets you some redress.

I agree, find a good property lawyer and spend a small amount for them to review the paperwork and give professional advice.

pinkshoes

I am confused as to why the housing association gave the vendor written confirmation that there was no works due, when they had such an expensive job in the pipe line. It is clearly their mistake, so seems dubious that they are washing their hands of it.

Have you asked what paperwork other residents have received regarding the proposed work?

The other party potentially responsible is your solicitors, but other than the report they requested and were given, could you prove that they missed searches that would have highlighted the works required?

Did they ask the vendor specific questions regarding any letters received about proposed works?

When did the owner die and the nephew become POA?

PlutoinCapricorn

Solicitors should have professional indemnity insurance for situations such as this.