Discount for major works?

Jamopy

Hi all,

I'm currently buying my council flat using the right to buy and while going through it my solicitor has just told me that there will be an estimated £10k of major works carried out within the first 5 years of me buying. I remember reading somewhere whilst researching whether to buy my flat that a woman negotiated a discount off of the asking price of her RTB due to the cost of the future estimated major works but can't find it again now. Would something like that be a one off or is it a common thing that i might be able to apply for/ask for before i complete the purchase? It's with Havering council if that's relevant, and any help would be appreciated.

lincroft1710

Usually the tenant is given the pre RTB discount price by the council and if the tenant thinks it is too high then they appeal the council's valuation. If owner expenditure was likely/definite in the next few years then it could affect the current value of the property and this may have been reflected in the council's valuation.


I don't know if councils can give discounts other than those prescribed in RTB legislation. I would suggest you contact the council and ask if they have reflected the cost of the impending works in their valuation and if not, would you be eligible for a further discount. 

HampshireH

I've not heard that and I don't know why the would do that. If you are buying their asset they aren't likely to then subsidence your share of major works.

No harm in asking though.

user1977

My understanding is that the valuation is the valuation - the council don't have discretion to adjust that. If you don't agree with the valuation then there's an appeal process. I haven't heard of upcoming works specifically affecting the valuation, though obviously the valuation ought to be on the basis of the unimproved property.

jonnydeppiwish!

Why should you be able to buy a property at a significant discount at tax payers expense, and then expect to get an additional discount for works to improve the property?

Ath_Wat

You can't "negotiate" - they don't want to sell it to you.  You have a legal right to buy it at a cost to the taxpayer.  If you don't want to buy it at the price they legally have to sell it to you at, don't.  They certainly are not going to drop the price to encourage you to buy like a normal seller would, because unlike a normal seller they don't want to sell.

If they do want to get shot of it to you for what appears to be a fraction of its market price, be worried.

Jamopy

lincroft1710 said:

I don't know if councils can give discounts other than those prescribed in RTB legislation. I would suggest you contact the council and ask if they have reflected the cost of the impending works in their valuation and if not, would you be eligible for a further discount. 

That's fair, and i'm guessing from the general tone of the replies that they discount i read of was an exception rather than the rule. I'll see what the council say.

Jamopy

jonnydeppiwish! said:

Why should you be able to buy a property at a significant discount at tax payers expense, and then expect to get an additional discount for works to improve the property?

Why are moaners like you always such a presence on these forums? If you don't like people getting discounts/deals then hanging around on a forum dedicated to finding the best discounts and deals seems like a stupid thing to do.

theartfullodger

Jamopy said:

...

Why are moaners like you always such a presence on these forums? ...

Not what I'd describe as moaners: 

Perhaps because tax-payers have valid views (which you might not agree with) of where their money goes.  We do still (just about) have free speech in the UK (Not united, no king...)

Best wishes to all.

NB for info, in receipt of 6 benefits, thank you you generous tax-payers you (old..)