First time buyers - advice on major works

Bobby242

We’re first time buyers and have had an offer accepted on an ex - local authority flat in London. The agent told us there were no upcoming major works when we viewed it. 

It has now surfaced through documents sent to our solicitor that there are planned works for the next couple of years estimated to cost £15k + up to potentially 25% overhead. Section 20 has not been issued so the costs are still an estimate and the exact nature of the works are unknown. The agent has said these kinds of notices come up a lot but then the works never actually cost that much. But we have no reason to believe this is the case. 

We are in the process of trying to negotiate the price with the seller. We’ve read all the stories and warnings about the risks of major works and certainly seeing that cost in black and white has made it a lot more real. 

Even if we can get a price reduction, we don’t know if we should still proceed. Or if it’s not worth the risk and we’re better off looking for privately owned blocks or period conversions. 

Any advice would be greatly appreciated. 

canaldumidi

Can't really help except to say take everything the agent says with a pinch of salt. Once he's pursuded you to buy and earned his commission, it's you that'll have to deal with any financial consequences.

Thrugelmir

When uncertain , walk away.  There'll be other hassle free properties to buy. 

Mildreds_Earrings

Dodgy advice from your Estate Agents. As someone who issues S20 Consultation Notices, I can confirm that in my experience, they are fairly accurate, not precisely accurate but the final figures are in the right ball park.

As for buying a privately owned apartment in a block, you would still have to consider major works costs depending upon the age of the property and as a leaseholder, you would still have to contribute towards costs.

If I were you, I would try to re-negotiate the purchase price with the Seller to account for the forthcoming major works. However, don't expect the Seller to pay for all the major works (I wouldn't). Maybe meet the Seller halfway?

Also buying a property in a social housing block, make sure your Solicitor has in writing facts about the building, for example, how many in the block are tenants or leaseholders, are there any ASB issues etc? This information, as well as the major works information should be on the LPE1 Form (leasehold property enquiries questionnaire). Make sure you obtain this. It is worth the additional charge. All the best. 

Bobby242

Mildreds_Earrings said:

Dodgy advice from your Estate Agents. As someone who issues S20 Consultation Notices, I can confirm that in my experience, they are fairly accurate, not precisely accurate but the final figures are in the right ball park.

As for buying a privately owned apartment in a block, you would still have to consider major works costs depending upon the age of the property and as a leaseholder, you would still have to contribute towards costs.

If I were you, I would try to re-negotiate the purchase price with the Seller to account for the forthcoming major works. However, don't expect the Seller to pay for all the major works (I wouldn't). Maybe meet the Seller halfway?

Also buying a property in a social housing block, make sure your Solicitor has in writing facts about the building, for example, how many in the block are tenants or leaseholders, are there any ASB issues etc? This information, as well as the major works information should be on the LPE1 Form (leasehold property enquiries questionnaire). Make sure you obtain this. It is worth the additional charge. All the best. 

Thanks so much. This is really helpful. The Section20 hasn’t been issued yet, it’s just a notice the leaseholder pack that the council intend to carry out works, and the S20 will be forthcoming. But I take from your comment to at either way, the estimated costs are likely to be accurate? 

hazyjo

From my knowledge from friends in ex-LA blocks, by the time they get round to doing the works, the bill is often much higher. Works also often seem to be pricey on council blocks compared to private ones.

Tread carefully with ex-LA flats, especially if there are lifts, matching windows and/or a flat roof. Not saying run for the hills, just do your research.