Homebuyer's report on Garden Flat says damp, asbestos and fire damage - what to do?

pinkshoes

You clearly like this flat as most people would run a mile based on that survey!!

I would personally:

1. re-visit the property with the EA, this time gaining access to the basement and seeing for yourself if there is fire damage. The current owner might also want to come along at the same time to discuss it.

2. It says the basement is under the communal hallway, so I would perhaps try and speak to the owners of the other flats and ask them if they recall any fire at the property at any point.  How long did the previous owner live there? What about the other flats?

3. Check the deeds carefully to see who is responsible for the basement. As it is under a communal area then that suggests that any repair work will be the responsibility of all 4 flats. 

The EA just wants the property sold so will say what they want.

ssparks2003

Whilst I am sure after reading the survey things seem pretty bad. If you are a gambling man you could follow pinkshoes advise and follow up with a lower offer to reflect the survey and the work required 

eddddy

pinkshoes said:

3. Check the deeds carefully to see who is responsible for the basement. As it is under a communal area then that suggests that any repair work will be the responsibility of all 4 flats. 

And the flat roof might also be the responsibility of all 4 flat owners.

But that doesn't necessarily mean they'll be willing to pay their share.  If they refuse to pay, ultimately you'd have to take them to court to sort it out.

In your position, I'd be tempted to adjust my offer on the assumption that you'd have to pay for all the repairs yourself - unless the seller can get an enforceable undertaking from the other flat owners that they'll pay their share.


You should also check whether the basement is demised with the flat - i.e. whether the basement would belong to you. If it will, how much headroom is there?  Is there scope to convert it into useful space - e.g. a store room or utility room or even a games room?  That might increase the value of the flat (if you buy it).

yksi

runfaraway said:

Thanks for taking the time to reply in such detail. The knackered flat roof is definitely inside my leasehold as it's only over my living room. The rest of the roof is the pitched roof on the original house.

The fire is definitely a concern though because I'm not a cash buyer and no hope to be in London. The mortgage was already approved, but obviously they didn't know about the fire damage. Even assuming it isn't fraud to withhold that info, I'll need to remortgage once my fix is up, and I'm guessing the buildings insurer will have an opinion on this, too.

From what you've said there's no hope for me here and it sounds like I need to drop out and start looking at other properties.  :'( I was talking with my lawyer the other day about exchanging in a week or so if nothing came back on the survey. Has anyone else dropped out so close to exchange? Do you lose your mortgage approval and rate?  Should I call the EA and see if they have anything to say about this and why I wasn't shown or told about the basement on viewing?

I think it's a wise call to walk away. (Incidentally, "your" roof is still probably a shared liability, I'm up for the cost of my neighbour's flat roof which is a garden flat attached to the main building. More than likely your lease covers the inside of it, ie, the ceiling and insulation, but not the trusses or roof.)

These sorts of properties are for cash buyers comfortable with high levels of risk. The sale price will be reflected in that and I would not be surprised if the agent has several offers fall through as people fail to get mortgages or learn of the structural issues one after another. I bought for cash after two over-asking offers fell through once the state of the roof was known. I would expect that your mortgage provider would not have advanced the funds until their own survey is done, so it looks to me like you're out of options here.

The right place will come along, be patient.