Buying share of freehold flat - survey issues

Seol88

Hi all, just after some quick advice!

Buying a flat in a Victorian conversion, London, share of freehold i.e. freehold owned by a company of which each flat has a share. 

Our accepted offer was under the asking price.

Our surveyor has spotted an issue which he says is down to lack of maintenance. They say that it's probably around £10k per flat to repair now. If left it could become much more expensive.

How would you suggest approaching this issue? Apart from renegotiating the purchase price we are concerned that it will be difficult to get other freeholders to agree to the work.

Thanks!

eddddy

You should push the problem back on the seller.

As a first step, tell the seller about the problem and ask them to discuss it with their joint freeholders and ask the seller to confirm that the joint freeholders intend to fix it.



Assuming you get a positive response - then you look at ways to get things tied up as legally watertight as possible through your solicitor.

Maybe you could agree one of the following via your solicitor...

• the freeholders get the problem fixed before exchange of contracts (and the seller pays their share)
• the freeholders give an undertaking to fix the problem - and the seller pays the freeholders £10k in advance
• the freeholders give an undertaking to fix the problem - and your solicitor arranges a £10k retention
• the freeholders give an undertaking to fix the problem - and you negotiate a £10k reduction in price (but you'd then need £10k in ready cash, in addition to your deposit)

Seol88

Thanks for your reply!

We spoke with our solicitor today who has basically told us to speak with the sellers' agent and come to an agreement and let him know.

We're waiting for the full report in any case before we go charging in. 

I'm a little worried about there being no movement on price given that we're already below asking and our mortgage valuation was fine, but then I suppose it's a negotiation and I guess they won't want to lose the sale completely about 6 weeks post-offer.

I think more than any potential discount the other freeholders are my concern so I guess we'll just see how that goes. It's a lot to spring on people but then another flat in the building sold in January so surely they're not entirely blind to it.