Price negotiation for no parking

AskAsk

My friend is buying a one bedroom flat for £158,000.  He was told that there are 5 parking spaces for the 17 flats in the block, on a first come first served basis.  It has now come to light through the conveyancing process that this information is incorrect and that the parking spaces are on a public road and so can be used by anyone and not dedicated for the residents of the block.

The landlord had put up a sign outside the building to state that the area is reserved for residents of the block, but actually this is not legally enforceable as he doesn't actually own the land!  I would therefore worry that the sign could be forced to be removed if anyone finds out and make a complaint to the council about it.

I have advised my friend to re-negotiate the offer price to take into account this new information and would like views as to how much the reduction should be in light of this new finding?  There is alternative parking at another street nearby but it is not convenient so the possibility of having a parking space right in front of the building was a better prospect for the flat, even if it is on a first come first served basis.

Slithery

A 5 in 17 chance of being able to park is worthless anyway. I wouldn't expect to get any discount.

housebuyer143

As above. Flat isn't sold with parking at all, it was sold with the potential to get a space, which is just useless. 

Section62

AskAsk said:

My friend is buying a one bedroom flat for £158,000.  He was told that there are 5 parking spaces for the 17 flats in the block, on a first come first served basis.  It has now come to light through the conveyancing process that this information is incorrect and that the parking spaces are on a public road and so can be used by anyone and not dedicated for the residents of the block.

The landlord had put up a sign outside the building to state that the area is reserved for residents of the block, but actually this is not legally enforceable as he doesn't actually own the land!  I would therefore worry that the sign could be forced to be removed if anyone finds out and make a complaint to the council about it.

I have advised my friend to re-negotiate the offer price to take into account this new information and would like views as to how much the reduction should be in light of this new finding?  There is alternative parking at another street nearby but it is not convenient so the possibility of having a parking space right in front of the building was a better prospect for the flat, even if it is on a first come first served basis.

If he needs parking then he'd be best looking for a different flat.

You are right to be worried about the sign.  It is probably illegal (not just unenforceable) and if there is a shortage of parking someone is bound to complain about it sooner or later.

Your friend should also take note that if the council introduces resident parking schemes there is no guarantee he would be able to get a permit to park on the other street, so his only option then might be hoping to be one of the 5 lucky people out of however many car owners there are in the neighbourhood.

Valuing a parking space or lack of is not easy.  I would start by looking at the cost of renting a garage in the area, or a long-term booking of someone's driveway-for-rent.

AskAsk

Section62 said:

AskAsk said:

My friend is buying a one bedroom flat for £158,000.  He was told that there are 5 parking spaces for the 17 flats in the block, on a first come first served basis.  It has now come to light through the conveyancing process that this information is incorrect and that the parking spaces are on a public road and so can be used by anyone and not dedicated for the residents of the block.

The landlord had put up a sign outside the building to state that the area is reserved for residents of the block, but actually this is not legally enforceable as he doesn't actually own the land!  I would therefore worry that the sign could be forced to be removed if anyone finds out and make a complaint to the council about it.

I have advised my friend to re-negotiate the offer price to take into account this new information and would like views as to how much the reduction should be in light of this new finding?  There is alternative parking at another street nearby but it is not convenient so the possibility of having a parking space right in front of the building was a better prospect for the flat, even if it is on a first come first served basis.

If he needs parking then he'd be best looking for a different flat.

You are right to be worried about the sign.  It is probably illegal (not just unenforceable) and if there is a shortage of parking someone is bound to complain about it sooner or later.

Your friend should also take note that if the council introduces resident parking schemes there is no guarantee he would be able to get a permit to park on the other street, so his only option then might be hoping to be one of the 5 lucky people out of however many car owners there are in the neighbourhood.

Valuing a parking space or lack of is not easy.  I would start by looking at the cost of renting a garage in the area, or a long-term booking of someone's driveway-for-rent.

i disagree with the responses where 5 in 17 chance is worthless as there is still a chance versus nil now.  it is obvioulsy a bluff by the landlord about the right to park and the owner had themselves bought the flat with the understanding that they had a right to park there as it is reserved for residents.

now it has come to light that infact this is not true, so it must affect the property price.  personally, i wouldn't even buy it as most flats in the area have dedicated parking space available or free street parking right in front of their door, so this is unusual and had been factored into the price but not enough in my opinion, now that it is pretty much mis-sold.

AskAsk

Slithery said:

A 5 in 17 chance of being able to park is worthless anyway. I wouldn't expect to get any discount.

i disagree.  my friend said that he went there in the evening and there was a parking space there as not everyone in the block has a car and they may not always be there during the day time when people have gone to work, so at least during the day, trades people could park there to carry out work or make deliveries or visitors could come over.

the landlord could also change the parking space to reserve one for a pre-book arrangement for such things as above, so the building had the land but now it turns out that land does not belong to the building, then this must have an effect on the price for the property.  the problem is how to value this drop in value.

TBG01

AskAsk said:

Section62 said:

AskAsk said:

My friend is buying a one bedroom flat for £158,000.  He was told that there are 5 parking spaces for the 17 flats in the block, on a first come first served basis.  It has now come to light through the conveyancing process that this information is incorrect and that the parking spaces are on a public road and so can be used by anyone and not dedicated for the residents of the block.

The landlord had put up a sign outside the building to state that the area is reserved for residents of the block, but actually this is not legally enforceable as he doesn't actually own the land!  I would therefore worry that the sign could be forced to be removed if anyone finds out and make a complaint to the council about it.

I have advised my friend to re-negotiate the offer price to take into account this new information and would like views as to how much the reduction should be in light of this new finding?  There is alternative parking at another street nearby but it is not convenient so the possibility of having a parking space right in front of the building was a better prospect for the flat, even if it is on a first come first served basis.

If he needs parking then he'd be best looking for a different flat.

You are right to be worried about the sign.  It is probably illegal (not just unenforceable) and if there is a shortage of parking someone is bound to complain about it sooner or later.

Your friend should also take note that if the council introduces resident parking schemes there is no guarantee he would be able to get a permit to park on the other street, so his only option then might be hoping to be one of the 5 lucky people out of however many car owners there are in the neighbourhood.

Valuing a parking space or lack of is not easy.  I would start by looking at the cost of renting a garage in the area, or a long-term booking of someone's driveway-for-rent.

i disagree with the responses where 5 in 17 chance is worthless as there is still a chance versus nil now. 

Your friend has already disproved that. 

my friend said that he went there in the evening and there was a parking space there

Getting a reduction doesn't solve the issue. If your friend values a parking space that much then they need to look for a different property. 

user1977

I would expect any difference in value to be minimal. 

canaldumidi

Is parking important to the buyer?

Yes? Find a flat with a dedicated parking space.

No? Buy this flat at the price agreed.

comeandgo

If one bedroom flats then some would have two people living there and some of those couples would both have a car so chance of getting a space would be less than 5 in 17 so I’d think your friend did not put any value in getting a parking space.

Gavin83

AskAsk said:

Slithery said:

A 5 in 17 chance of being able to park is worthless anyway. I wouldn't expect to get any discount.

i disagree.  my friend said that he went there in the evening and there was a parking space there as not everyone in the block has a car and they may not always be there during the day time when people have gone to work, so at least during the day, trades people could park there to carry out work or make deliveries or visitors could come over.

the landlord could also change the parking space to reserve one for a pre-book arrangement for such things as above, so the building had the land but now it turns out that land does not belong to the building, then this must have an effect on the price for the property.  the problem is how to value this drop in value.

It’s impossible for anyone to answer this. Everyone will have an opinion but the only opinions that count are that of the buyer and vendor. Ultimately your friend can offer what they want but if the vendor doesn’t agree then the sale is off.

Tell your friend to put whatever value on this parking space feels right. Just expect that the vendor might say no.