Negotiations advice needed urgently - Price agreed but seller misled us!

cramac90

Hi all,

My partner and I had an offer accepted on a house (for purchase), however we have since discovered that the vendor misrepresented the property on the TA6 form.

The details are:

House priced at £275k.

Offer accepted at £286k.

TA6 form said no to 'awareness of proposals to develop property or land nearby', however there is a large development of 29 houses being built within close proximity (40% of which will be affordable housing).  The planning consultation clearly states that nearby residents were issued a letter, plus almost everyone on their road responded to the consultation, it was advertised in the local newspaper and on lamp posts etc, so they were quite clearly aware - also the house went up for sale immediately after planning permission was granted.

In addition to this, we have discovered covenants which restrict alterations and modifications to the house - the council has to approve these as it was once a council house - the use of the house - it can only be used as a private dwelling - and a clause in the solar panel lease which states that upon expiration of the lease, we may be asked to remove the solar panels at our own expense.

My questions are:

What do you feel would be a reasonable amount to negotiate off of the price of the house based on the affects of the above-mentioned items on the current and future value of the house?

What do you feel would be too low of an offer - that is what would offend them?

What do you feel is a reasonable amount to negotiate off for each item mentioned separately, that is, a breakdown so to speak?

For context, the house is in a small village outside of the Cotswolds so for us, the development has a greater impact than it would say in our current location in the city.

Thanks in advance.

user1977

cramac90 said:

TA6 form said no to 'awareness of proposals to develop property or land nearby', however there is a large development of 29 houses being built within close proximity (40% of which will be affordable housing).  The planning consultation clearly states that nearby residents were issued a letter, plus almost everyone on their road responded to the consultation, it was advertised in the local newspaper and on lamp posts etc, so they were quite clearly aware - also the house went up for sale immediately after planning permission was granted.

In addition to this, we have discovered covenants which restrict alterations and modifications to the house - the council has to approve these as it was once a council house - the use of the house - it can only be used as a private dwelling - and a clause in the solar panel lease which states that upon expiration of the lease, we may be asked to remove the solar panels at our own expense.

What do you feel would be a reasonable amount to negotiate off of the price of the house based on the affects of the above-mentioned items on the current and future value of the house?

I can't see that any of that necessarily affects the value of the property. The covenants are absolutely bog standard.

Flugelhorn

re the covenants - lots of properties have these so I wouldn't expect anyone to give a reduction because of them. re the solar panels, there are problems associated with leased ones I think and a lot of people avoid them - am sure others will know more

re the development - if someone asked about "developing property or land nearby" I suspect many people would just think of the neighbours?? how far away would people be expected to mention?  - honestly don't know the answer 

diystarter7

Hi

About "awareness" have you thought about it that may not be aware or read differently the term, 'nearby'?

Re the restrictions, most homeowners don't look into that or forget when they first bought the house as often solicitors rush through stuff like that as many properties have restrictions
If I was selling, I'd most likely not move on the price but we are all different
and only you can decide what the worth of the two items is toy you and offer accordingly

It is the solicitors/searches that often pick up stuff you mentioned

Thnaks

cramac90

Hi all,

For further clarity:

The large development backs onto the gardens of the houses opposite the property (it's on the next road).

Our offer was made back in September, but due to delays from the vendor/ vendors solicitor in providing the contract pack, solar panel lease and responding to enquiries we have just received a report, including the searches, which highlighted these issues.

As such, the context of our offer has drastically changed.

dimbo61

So when did you offer over asking price ?
Were there lots of other people interested in the property and area ?
Bank of England base  rate has gone from 0.1% in December 2021 to 3.5% in December 2022 and mortgages have followed with more increases due in 2023.
It's now more a buyers market rather than a seller's However if lots of potential buyers in your area may effect things.
You can only ask !

cramac90

dimbo61 said:

So when did you offer over asking price ?
Were there lots of other people interested in the property and area ?
Bank of England base  rate has gone from 0.1% in December 2021 to 3.5% in December 2022 and mortgages have followed with more increases due in 2023.
It's now more a buyers market rather than a seller's However if lots of potential buyers in your area may effect things.
You can only ask !

Thanks for your comment.  Our offer was made when it was a sellers market, however in the months that have followed, like you say things have drastically changed.  We've seen other properties in the area stuck on right move that have since reduced in price.

SiliconChip

There is no way that 29 houses can be described as a "large development". The development near me is 800 houses and that's not even the largest one around here.

ReadingTim

Whether the seller knowingly misled you or not is neither here nor there - this is the reason you get searches etc done, so it's good you're getting good value from them.  Unfortunately, there is no such thing as a standard price list of discounts for restrictive covenants, prospective developments, solar panels, etc, nor any kind of magic wand that you can wave to make the seller accept them.  

In your position, I would simply raise the issues you have uncovered, and state the revised price you're willing to offer in light of this evidence.  The seller may reject your offer, or be willing to negotiate.  You will need to decide what price you are actually willing to pay, and if you can't agree a new price, whether you proceed at the previously agreed price, or walk away.  

user1977

It sounds like your argument is more that the market generally has changed? I'm not sure arguing on the points you've mentioned is going to sound any more convincing.

Section62

cramac90 said:

The planning consultation clearly states that nearby residents were issued a letter, plus almost everyone on their road responded to the consultation, it was advertised in the local newspaper and on lamp posts etc, so they were quite clearly aware - also the house went up for sale immediately after planning permission was granted.

Were your vendors one of the households that responded to the consulation?

If not, you have no proof they were aware of the application.

Letters can be undelivered or unread, and people are not required to read the local paper or study street notices.

On the other hand, your solicitor and/or the search process should have uncovered the development proposals.  What (if anything) did they say about this?

The effect on property value (and hence your offer) depends on what the land was previously used for.  Some people would pay more for a house with other houses as neighbours (even 'affordable' ones), rather than (say) a pig farm, industrial unit, or a lorry park.