selling flat with section 20

[Deleted User]

Hello - I'm selling a flat with a section 20. I've already accepted an offer lower than the asking price as I wanted a quick sale, not to do with the section 20 but because I need to take care of a family member who's unwell and I want to move back in to family home to do this. QUESTION - I obviously have to tell the seller about the section 20, but is it fair for the seller to ask for a further reduction on the flat when they already have a a 15k reduction? Property was on sale for 150k, I accepted 135k for quick sale, it doesn't seem fair to ask for a further reduction does it? The section 20 is estimated to be 2k, its actually massively over charged the original estimate was half but we cant find a cheaper company to do works and most say the job is too small for them!

CSI_Yorkshire

They can ask, you can say yes or no.

Just like for anything else that came up during searches or surveys.

Up to you and them to decide what happens after that.

turnitround

I suppose it depends on the required work.
If the buyer made the offer without knowing there was a Section  20 then they have offered what they thought the property was worth. If they did not know about the Section 20  at the time of the offer then of course they will probably want a further reduction.

MultiFuelBurner

Obviously this needs declaring and just see what the buyer says.

Tiglet2

Even if you don't declare it, it will be there in the management pack or LPE1 and the buyer's solicitor will see it and raise enquiries.

NameUnavailable

No such thing as a 'quick' sale other than selling to a cash buyer at auction when you exchange on the hammer falling.

If the buyer isn't in a chain it might be a quicker sale but the conveyancing process will take the same time whatever.

Up to you if you drop the price further but you've already taken quite a hit assuming the original asking price was realistic. What's the work for?

[Deleted User]

They are replacing a small section of roof that has a leak, no structural change, its well over priced. there is such a thing as quick sale, I mean if I didn't accept offer I could wait months even year for another offer.

eddddy

[Deleted User] said:

...but is it fair for the seller to ask for a further reduction on the flat when they already have a a 15k reduction? 

To be honest, it's not really a question of what's fair - it's more a question about the mindset of the buyer.

When the buyer finds out, they might do a number of things including...

• Be angry that you didn't mention the section 20 earlier - before they instructed solicitors, applied for a mortgage etc

• Reduce their offer by £2k, because of the cost of the s20 work

• Reduce their offer by £3k, £4k or £5k - in case the cost overruns, and/or because of the hassle
  
  
• Leave their offer as it is, but want a retention to cover the cost of the s20 work (i.e. they buy the flat, but you still have to pay for the s20 work.)

• Leave their offer as it is - with no conditions.

• (I guess they might even decide to walk away - especially if things aren't explained clearly to them)

Are you selling through an estate agent? Did you tell the estate agent about the s20 work?

It might be an idea to tell the estate agent now, so that they can call the buyer and "break it to them gently", explain the situation, and give things a positive spin.

That might be better than the buyer finding out in a starkly worded letter from their solicitor.

turnitround

[Deleted User] said:

They are replacing a small section of roof that has a leak, no structural change, its well over priced. there is such a thing as quick sale, I mean if I didn't accept offer I could wait months even year for another offer.

A 'quick sale' isnt simply down to you accepting the first offer. Anything could happen in the chan.  I sold my house 4 years ago, I got an offer which I accepted  2 days after the board went up. It took 11 months to complete the chain and get to the point of exchange.

If your buyers are not happy about the Section 20 then you may have to start again anyway.

[Deleted User]

eddddy said:

[Deleted User] said:

...but is it fair for the seller to ask for a further reduction on the flat when they already have a a 15k reduction? 

To be honest, it's not really a question of what's fair - it's more a question about the mindset of the buyer.

When the buyer finds out, they might do a number of things including...

• Be angry that you didn't mention the section 20 earlier - before they instructed solicitors, applied for a mortgage etc

• Reduce their offer by £2k, because of the cost of the s20 work

• Reduce their offer by £3k, £4k or £5k - in case the cost overruns, and/or because of the hassle
  
  
• Leave their offer as it is, but want a retention to cover the cost of the s20 work (i.e. they buy the flat, but you still have to pay for the s20 work.)

• Leave their offer as it is - with no conditions.

• (I guess they might even decide to walk away - especially if things aren't explained clearly to them)

Are you selling through an estate agent? Did you tell the estate agent about the s20 work?

It might be an idea to tell the estate agent now, so that they can call the buyer and "break it to them gently", explain the situation, and give things a positive spin.

That might be better than the buyer finding out in a starkly worded letter from their solicitor.

I have told them about the roof, the thing is, the s20 is at its end stage, its being actioned this month and it will be done before they move in so that's why I didn't say anything at first at the viewing or when the offer was initially accepted, I've not even received a memorandum of sale yet, property is still on the market so think the tone of your comment is unfair, they haven't had to instruct or pay for anything as yet, and I have told them there are works on roof when I was asked, I just didn't go in to details cause I knew that it would put a buyer off before they knew the facts. section 20 sound way worse than what it is. My question was about whether it was fair to use the section 20 as a way for a buyer to save money, but I guess its a stupid question to ask now I think about it, i wondered if anyone else had been in the same situ and could advise.

subjecttocontract

If the buyer is expected to pay £2K for the roof repairs then I think you can expect them to want something......either a further £2K reduction or perhaps a negotiated meet in the middle ?