Survey results - what to do?

MaggieMags

We had an offer accepted on a nice house last week, it wasn’t exactly what we were looking for, but close enough in this market. We offered 2% below asking, and were pretty happy with that as, although it’s in need of updating (ex rental property, been stood empty for 6 months after vendor and his wife divorced), it’s in a nice area, big garden and on the surface looked ok. 

We’ve since had the building survey results back, and it’s a sea of red and priority 1. I’ll list all of the red/priority issues below:

1) Roof needs replacing, including all timbers.
2) Serious damp problems, some areas had moisture readings of up to 85%.

3) Cracked lintel over front door.
4) Metal lintel over upstairs window needs replacing and is damaging brickwork and window frames. 

5) Many spalled bricks.
6) All pointing needs redoing.
7) All guttering and down pipes need replacing.
8) Windows and doors all need replacing (we double checked this with a window fitter who agreed). 

9) Full rewire needed (confirmed by electrical survey which was carried out on the same day).
10) Floorboards are rotten in a few places.
11) A wall has been taken down between lounge and dining room to create a through room, this was done incorrectly (vendor said he did this himself when we viewed) and is unstable. 

12) Woodworm and dry rot in cellar. 

All of this amounts to over £50k of work, by the surveyor’s estimates. There were obviously lots of smaller things too, but we expected that.  We’re not sure what to do. We’re probably up to the work, but I’m not convinced the vendor will want to drop the price. He was really annoyed at having to drop the 2%, even though we’re cash buyers and he’s wanting to sell ASAP. We’re FTB’s, so could do with opinions from experienced house buyers/sellers. Would you walk away or renegotiate? What would you renegotiate to? Wouldn’t the vendor have to inform any future buyers of the survey anyway?

tink_1983

Show him the report. Let him know the costs of the repairs the home needs. 
He will have this issue with any future buyers

Irishpearce26

WALK.AWAY.NOW

Redwino222

How much do you want the house?  Were there any other people bidding on it?

To be honest I would walk away unless I had planned a full refurb. 

If this is more work than you could reasonably have expected when you viewed, then drop your offer to what you can now afford taking into account the additional work.

i would probably try to meet the bed or half way on this - drop my offer by £25k.  But that’s without knowing the value of the house, the state it was in when you viewed and the local market!

Irishpearce26

As FTBs you don't want this type of project, also if the seller was annoyed you got it 2% below asking then he isn't going to shift on £50k. No a house seller does not have to disclose any problem with a house unless its regarding disputes/covenants etc. The house could practically be falling down and they legally aren't required to say anything, its the buyers job to do due diligence.

Surveys!!! If you're really keen get a specialist in first before you do anything, surveyors exaggerate and aren't specialist so its all ifs ands and maybes at this stage.

Thrugelmir

When does the roof need replacing? Now or in a few years time.  

Lifematters

Seller may already be aware of issues such as damp, rot, rewiring and renovation required. As such he may state that the works needed are already reflected in the asking price. Is the house cheaper than similar properties in the area? This will likely affect your mortgage offer. Personally I would walk away. 

MaggieMags

Irishpearce26 said:

As FTBs you don't want this type of project, also if the seller was annoyed you got it 2% below asking then he isn't going to shift on £50k. No a house seller does not have to disclose any problem with a house unless its regarding disputes/covenants etc. The house could practically be falling down and they legally aren't required to say anything, its the buyers job to do due diligence.

Surveys!!! If you're really keen get a specialist in first before you do anything, surveyors exaggerate and aren't specialist so its all ifs ands and maybes at this stage.

Ah, ok. My neighbour said that the laws around passing on surveys etc have changed in recent years and you now have to. A quick Google brought up several articles which seemed to confirm this (can’t link, because I’m too new). However, I’m no expert, and wanted to be sure it was correct & I wasn’t misunderstanding. Thanks for setting me straight there. Good to know. 

MaggieMags

Lifematters said:

Seller may already be aware of issues such as damp, rot, rewiring and renovation required. As such he may state that the works needed are already reflected in the asking price. Is the house cheaper than similar properties in the area? This will likely affect your mortgage offer. Personally I would walk away. 

No, it was actually priced at the very top end of prices in that street. One sold for £2k less last month, a few doors down, same style of house, it had a converted loft & was in much better condition (I know what it sold for as I know the buyer). I’m thinking walking away is probably what we’ll do but wanted to be sure we weren’t being overly dramatic. The fact we’re so inexperienced and couldn’t take someone who knows what they’re looking for with us didn’t help, to us it all looked fine outwardly. The surveyor actually recommended we don’t buy it. A neighbour of this house that we spoke to said they had a very high turnover of tenants, so that should probably have been a clue. 

MaggieMags

Thrugelmir said:

When does the roof need replacing? Now or in a few years time.  

‘As a matter of urgency/ASAP’.

Sunsaru

The first house I looked at on my journey was in a similar condition. Seller would not take a penny off despite the survey saying the place needed gutting, rewiring, new floor boards, damp.,,,,

 I walked....