FTB Help needed !!

Kazuya_R

Hi all I am new to this site and I have been looking at previous threads but can’t find an answer. I am a FTB and I am a few months into purchasing my first property in Oxford. I offered the asking price of £295k which was accepted, there was a lot of interest in the property and there were 4 offers at the asking price, but the seller chose me as I am not in any chain.

After the survey there was about 8k worth of stuff that needed doing so I asked the EA to ask the seller to contribute half, which was declined and I was told that if I don’t wish to purchase the property then it will be offered to next in line.

However, now to the closing stages of the purchase and the seller is in a chain and is dependent on the sale of this house to buy the onward purchase etc I have found out that the neighbour to the property I’m purchasing has recently submitted a planning application for a large two storey extension which the seller did not disclose to their solicitors or mine. Once I raised this with my solicitors the following day I received a copy of the notice sent to the seller from the local council. I also made the EA aware of the situation.

If the planning is approved, as at the moment it is still in the application process, will affect the value of the house I am about to purchase ? and devalue it. I have spoken to my surveyor who has said that he thinks it will affect the value to some extent but can’t give a figure by how much as he will only be in a position to give me a figure once the planning is approved. He thinks that issues such as light/privacy will have an impact. He has said that the planning will get approved even if it is declined initially as the architect will make some modifications as needed and resubmit. Surprisingly the EA has had a sudden urgency over the last two weeks to try and get me to sign and exchange contracts etc but I havnt mentioned anything regarding price or the property being devalued. I just said I’m considering the disruption and noise as soon after I move in there will be a big building project next door probably starting in Spring/19.

Any input or help on what I should do would be greatly appreciated or if anyone has been in a similar situation. I have a feeling that the seller is ready to exchange on the onward purchase hence the urgency and also the other factor is that they now know that I have become aware of the planning application next door.

Many Thanks

Adam

AlexMac

Interesting question. Only you can say how much you want the house, and whether the "backstop" (to use a topical term) in any negotiation would be backing away and swallowing a few quid in fees and expenses; don't threaten if you can't deliver?

Anyway, assuming you want the house (and I would) don't be totally put off by a Plan Ap. Like yours, our Council agrees almost anything, and the worst one for disruption was a pair of semis, with 2-level basements, on the site of a bungalow in our narrow mews lane. Horrendous vibration, and over 100 2-tonne tipper lorry spoil trucking trips, often outside the rarely enforced "conditions" attcehd to the permission, BUT...

It only lasts a year, and you'll be surprised how fast your (probably lesser) disruption passes. Put it another way, if you'd bought and the neighbour applied for permission next year, you'd be in the same position as if you bought now without the shadow.

You could search online to see if your Council has planning guidance on "Residential extension" in terms of what is likely to be agreed. Mine does and whereas single storey ones are a shoe-in, doubles are far from certain. Or look a the Planning Portal. Then you could object on valid grounds (eg density, overlooking, over-developement of the small site, lack of congruence with other extensions... Noise and nuisance ain't valid grounds) But unless there was widespread local opposition; have you asked future neighbours?) I wouldn't bother objecting. My Council only puts applications on a Committee Agenda for Councillors to decide if there are 8 objectors; otherwise they go through on Planning Office recommendation.

And also, unless the neighbour plans to sell, ou's simply get off on the wrong foot.. Maybe knock on their door and chat in a friendly way?

I doublt the surveyor is correct in saying the extension next door will devalue yours. It might even enhance it (assuming it doeasn't overlook, dominate or prevent your enjoyment. Or prevent you from doing an extension of your own, whic is a really good way to add value in future.
Make sure they don't stick flues and windows on your boundary if there is a "Party Wall" - Google "Party Wall agreement" )

But returneing to the negotiation, you can now tough it out for a reduction, letting the other side know via the EA that you are really p155ed off to have been misled, will NOT be bounced, are thinking of walking away, and want to be tteated with respect (as Brando said in Godfather!)

But be clear about waht you want? The orib=ginal 50%? More?

Or just live with it- it really won;t be that bad. Our new neighbours opposite (in the 13 m hole in the ground) are delightful even thought the developer who sold to them killed our phoes, bradband, alarms etc withtheir piling, and shook plaes off walls and neighbours' fillings out of their teeth!

Good luck (I was cooking a curry so others have probably responded by mow

Kazuya_R

Thank you for your reply. It’s the surveyor and just our own thoughts that the extension may devalue the house we are purchasing and that is the main concern. We are not so bothered about the disruption etc The EA kept blowing on about how wonderful the house next door will look and make the street and our home look better. I felt that of course they don’t want to speak about any negatives ?

We do really want the house. But do we try and ask for a reduction based on the planning Ap ? I was considering asking for a 10k reduction. But wanted some input from the surveyor first but he can only comment once the plans have been approved. The date on the council website stated the meeting will take place 19/10/18 end of this week, not sure how soon after they state of its approved or declined.

I have given the EA an earful of the seller not disclosing the planning next door and me having to find it myself is something I do not accept. Of course excuses were made up as expected. That’s where I am at for now ....

Slithery

Did you not search for local planning applications before viewing the property, or was the application only put in after your offer?

Usually solicitors only check for planning applications for the property being purchased, they only search neighbouring properties if you ask them to.

Kazuya_R

No the application was put in September. My offer was accepted in July. I randomly found the planning when I was looking at what mods had been made to properties on the street etc what are your thoughts ?

Thanks

Kazuya_R

Hi can anyone else please give any suggestions

Cakeguts

There is no guarantee that had you already bought the house the neighbour would not have had an extension approved so it is up to you whether you want the house or not enough.

Kazuya_R

Can anyone comment if it will devalue the house because of the planning ? Do I reduce my offer ?

Mutton_Geoff

You seem more concerned about ways to chip a bit off the price of the house than completing the purchase and making it your home. Are you sure you are committed enough?

£10k is approx 3% of the price of the house. You should have done your homework (due diligence) and offered the price you were happy with at the beginning, not offer asking and later try to drive the price down. Be careful the seller doesn’t sell to one of the others if indeed there are other parties interested.

Slithery

You'd get nothing off from me if I were your vendor. Your original offer should have already taken into consideration possible future development in the area.

MysteryMe

Will you be happy living in the property when the extension is built? If no a £10,000 reduction isn't going to help is it, walk away and find somewhere else. However, there is always a risk with any property you buy that it might go down in value regardless of whether a neighbour builds an extension or not.