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Retention on house purchase
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andy_67
Posts: 1 Newbie
I am currently on the verge of buying a house which is on the land / part of a hotel which has been out of use for a number of years. The owner has full planning permission to divide the hotel into 4 properties, with the one I am intending to buy already refurbished. The others are still in a state of repair and have yet to be sold as ‘projects’. The concern I have is that if I buy the property and the owner does not sell the remaining ‘houses’, or get renovated, I could effectively be buying a property on a building site with no guarantee of development. This could seriously impact the value of my property. The question is - can I put a retainer on the purchase of the property that is released when the other properties have been sold / developed? If so, I am looking at c20% retention.
Any thoughts?
Any thoughts?
0
Comments
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I can't see them going for it - the norm when you buy a newbuild is that you put up with being on a building site for an indefinite period. A retention also complicates your mortgage if you need one.0
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