Advice required on expected costs of work on ex-local authority property

camden_kid

I'm in the late stages of buying an ex-local authority property and all is going well. In March last year the vendor was informed by the council that some work was to been done to the whole block (doors repaired, drains fixed). The initial approximate cost for the vendor was £1,880.00. I was not informed of this before I made the offer (October). The work has now been done (December/January) but it doesn't seem to be possible to get an exact figure of the costs from the council. My solicitor has put it to the vendor that they should pay the whole cost. The vendor does not want to do so as I will be the beneficiary of the work.

The purchase process has taken a bit longer than I wanted but I'm not in a rush. To speed things up a bit I have suggested to my solicitor that the vendor pays £800.00 and I will cover the rest. She still thinks they should pay the full amount and is concerned that the costs could go over the initial approximate. I've been living in an ex-local authority property for nearly 30 years and know that final cost can differ but in my experience it's never a huge amount. My thoughts at the moment are that I wouldn't be taking much of a risk.

Any advice on this situation would be most welcome.

NameUnavailable

Has your solicitor asked the council for information i.e. estimate of costs or schedule of works done and any planned works?

It is normal process for solicitors to retain an amount of money on completion to settle any outstanding charges. However if you're happy to pay anything over £800 then that's your decision and you can instruct the solicitor accordingly. Just be prepared that the actual bill might be more.

OTOH if you insist that the vendor pays, what else can they do? Relist (but anyone else will expect them to pay any current charges).

camden_kid

NameUnavailable said:

Has your solicitor asked the council for information i.e. estimate of costs or schedule of works done and any planned works?

It is normal process for solicitors to retain an amount of money on completion to settle any outstanding charges. However if you're happy to pay anything over £800 then that's your decision and you can instruct the solicitor accordingly. Just be prepared that the actual bill might be more.

OTOH if you insist that the vendor pays, what else can they do? Relist (but anyone else will expect them to pay any current charges).

My solicitor is basically asking the vendor's solicitor to provide the information. There is only this work that is done/scheduled but that solicitor cannot get a more accurate figure than the approximate cost from the council. I have also contacted the council.

Your final line makes a good point but I'm trying to avoid pushing the vendor into a corner in case they drop the purchase. It's not a lot of money in the grand scheme of things and it would be a shame to compromise the process at this stage.

wilfred30

If the work has already been done, surely the cost should now be a known amount rather than an approximation.

camden_kid

wilfred30 said:

If the work has already been done, surely the cost should now be a known amount rather than an approximation.

The work has only recently been finished. It's possible the full account hasn't been calculated. From my experience it can take quite a while (months) between work completed and final cost known.

hazyjo

You're lucky if it's not differed too much in your experience. I've had friends in ex-LA properties and the final bill has always been way over initial quotes.

If they do agree to pay some costs, I'd be more tempted to make it a percentage than an actual amount.

Mildreds_Earrings

Did the Vendor complete a LPE1 form? On the LPE1 from, it asks the leaseholder if there are any major works planned within the next two years. £1,800 per leaseholder would come under major works. Your offer to pay half towards the works is very fair! 

Housing Associations and Local Authorities can complete the LPE1 forms but quite understandably, that incurs a fee. The LA is under no obligation to provide you with the major works and service charge information. However, they can release this information to to the current leaseholder if they pay the fee of completing the LPE1 form.

Given what has happened, I would insist on the completed LPE1 form, especially where LA leasehold properties are concerned. 

NameUnavailable

camden_kid said:

NameUnavailable said:

Has your solicitor asked the council for information i.e. estimate of costs or schedule of works done and any planned works?

It is normal process for solicitors to retain an amount of money on completion to settle any outstanding charges. However if you're happy to pay anything over £800 then that's your decision and you can instruct the solicitor accordingly. Just be prepared that the actual bill might be more.

OTOH if you insist that the vendor pays, what else can they do? Relist (but anyone else will expect them to pay any current charges).

My solicitor is basically asking the vendor's solicitor to provide the information. There is only this work that is done/scheduled but that solicitor cannot get a more accurate figure than the approximate cost from the council. I have also contacted the council.

Your final line makes a good point but I'm trying to avoid pushing the vendor into a corner in case they drop the purchase. It's not a lot of money in the grand scheme of things and it would be a shame to compromise the process at this stage.

If you don't want to 'push the vendor in a corner' then let's say you agree they pay £800, and you end up with a bill of £3K, would you be OK with that?

Your decision entirely, if you're happy to accept whatever may come your way just carry on, no need asking here for advice.

camden_kid

hazyjo said:

If they do agree to pay some costs, I'd be more tempted to make it a percentage than an actual amount.

This is actually very good advice and the way I will take it. Thanks.