Offer, taking into account scheduled works? Who should pay?

nLdn

Hi,

I put an offer on a lovely 2 bed exLA flat in London. It was over priced and I put in an offer a little lower than what I thought it worth based on local sales and conditions.

The EA has got back to me and said my offer is too low but also that there are major works scheduled to replace the roof to the tune of £15k. (asking price was a little under £500k)

I think the seller may think that by not going to her way over priced asking price she is somehow accounting for the works, she's not really, the price its at is daft.

Where should I go with the offer and how should I handle what to do with the works?

Has anyone been in this position recently and could advise?

I'm told by the agent that te council does have payment plans in place but of course I dont like the idea of more debt really.

Any help welcome.

Thanks,

n

eddddy

Is that £15k per flat, or £15k in total?

Either way, if your concern is having the ready cash to pay for the work - instead of offering lower, you could ask for a retention.

(That might mean you can get a bigger mortgage, and hence need less ready cash.)

nLdn

£15k per flat.

Whats a retention?

Hoploz

You should offer what you're willing to pay, bearing in mind the amount you're going to have to find in addition to the purchase price.

When is the work likely to happen, and when will the money become due? Has any payment been made towards this £15k already? I think these are questions you should be asking.

And in asking these questions, the seller will realise this is a sticking point, for you to any other buyer, and reality may kick in with their price expectation.

Unless someone else is willing to pay more, of course.

Hoploz

A retention would be money that is held by the solicitor. For example, if the works are estimated at 15k, the seller leaves that in the pot and you draw it down for the works. But if the work ends up costing only 10k then the seller gets the remainder back.

But it's easier if you just negotiate the buying price. The seller will want to know where they are for their onward purchase, probably.