Negotiating purchase price following survey

GSte

We're in the middle of buying a leasehold flat (first time buyers) on which we've offered £315k and have just had the survey done, which valued it at £10k less than we've offered. This valuation was based on general condition of the property and potential costs arising.

As well as this the service charge has increased since we made our offer by £85/month due to building repairs that need doing, and is likely to remain at about £220/month in total for the next 6 years.

I just wondered if anyone could give any advice on how to negotiate with the seller, who is adverse to accepting a lower offer, and what kind of discount would be reasonable to request?

Many thanks

LEJC

you could try to negotiate...go all in on the £10k,maybe split the difference at 5 or just see if there is anyway they will lower anything given the rises in management costs that have now come to light....

however if the vendor is unwilling to move on price you then only have 2 options...suck up the shortfall or walk away ...only you know what its cost you so far and whether the flat is now worth the extra.

Presumably the vendor is now aware of the issues regarding increased management costs and will have to pay them if they dont sell....maybe thats the stronger of the points to focus on to see if you can get a deal

sometimes you have to accept that vendors will not move on price however persuasive your negotiation skills are

eddddy

The standard negotiation tactic is to say that you were at the LTV limit on your mortgage and you can't afford a bigger deposit...

... so, because of the low valuation, you can't afford the property unless they reduce the price.


(This may be difficult if you used the EA's mortgage broker - because the EA will know if it's untrue. And/or the vendor might just say "I'll put it back on the market then.")

Hoploz

Does your lender know about the increase in service charges? Just thinking about their affordability criteria here.

£220 PCM sounds a hell of a lot to find on top of mortgage, council tax and everything else. Are you sure you want to take this on? You're basically throwing that money away every month which you could pay towards a bigger mortgage to buy something freehold, surely?

LEJC

OP....The £10k shortfall that you mention covers the general condition of the property and the potential costs arising....are these in addition to the costs for repairs identified in the increase of the management charges or are they the same costs?

if they are different costs then it might be more prudent to walk away now