Enforcement notice on flat I am trying to purchase

firsthomebuyer2023

Hi everyone - first home buyer here and looking for some additional advice.

I am currently in the process of purchasing a leasehold flat (building has 2 flats and mine is the ground floor). After having the offer accepted, an enforcement notice was issued to the property due to non-compliant roof replacement that was made last year (which the freeholder never applied for consent). The property is in a conservation area so has requirements to maintain a certain style consistent with the original architecture. I have read through all the documentation of the enforcement and the two main issues are: 1) the council is not happy with the material used (should be slate and they used concrete) 2) the council is very unhappy that some decorative elements have been removed and not replaced. 

The freeholder applied for retrospective consent which was denied. They simultaneously applied to appeal the enforcement notice through the UK gov (which the median time to decision is 53 weeks).

My solicitor wanted to wait until the an appeal decision had been made before exploring options but after my investigative work I realise this is not a feasible option as my mortgage offer will expire before a decision is made (and I don't want to wait a year!)

Question from me is: a) is there any scenario where the freeholder can guarantee I will not be liable for any subsequent works to the roof (due to this whole situation being their fault) and b) would my mortgage provider ever accept a property with an ongoing enforcement notice on it even if we could ensure where the liability stands in writing?

Wondering whether to cut my losses early on this one and pull out of the sale... speaking to my lawyer tomorrow about it all but she has not given any creative solutions so far and likes sitting in the "wait and see" lane.

Catpuss66

I would be worried, obviously the freeholder has cut corners. I  wonder what else that has been done not up to standard.

user1977

Generally I wouldn't expect a mortgage lender to go near a property which had an outstanding enforcement notice, though perhaps it's acceptable if they can be persuaded that the freeholder will deal with it at their own expense.

jlfrs01

Oh dear, what a terrible predicament! 

Your biggest issue I see is the Mortgage Lender. No Lender will grant a mortgage with an Enforcement Order against it, there must be "Clear Title" so in this case unless the Leaseholder makes good on the works carried out you're not going to get the money. Besides, the appeal might go against the Leaseholder even if you could wait 12 months.

An Enforcement Notice is applied against anybody with an interest in the property or land concerned, so it's not only the Leaseholder but owners/tenants too who are on the hook and what's worse, it's applied to the land or building so even if sold on, it stays in place.

Ignoring an Enforcement Notice has consequences as it is a criminal offence, I'd think very carefully about how you want to proceed.

Exodi

firsthomebuyer2023 said:

Wondering whether to cut my losses early on this one and pull out of the sale... speaking to my lawyer tomorrow about it all but she has not given any creative solutions so far and likes sitting in the "wait and see" lane.

This option, and I don't think it's fair to characterise the conveyancer like this - if you're not willing to "wait and see", then you will probably have to look at other flats as I suspect the solicitor isn't minded to recommend crossing your fingers, wearing your lucky underwear and praying for the best while you proceed with your eyes closed.

They'll be equally frustrated that the job now includes a load of extra factors and leg work that they probably won't be able to charge for.

Fredw56

Walk away now.

chanz4

run away fast

propertyrental

firsthomebuyer2023 said:

Hi everyone - first home buyer here and looking for some additional advice.



Question from me is: a) is there any scenario where the freeholder can guarantee I will not be liable for any subsequent works to the roof (due to this whole situation being their fault) and b) would my mortgage provider ever accept a property with an ongoing enforcement notice on it even if we could ensure where the liability stands in writing?
....

a) No. Any costs the freeholder becomes liable for will be passed on to the leaseholders (you).

b) probably not.

eddddy

firsthomebuyer2023 said:

... speaking to my lawyer tomorrow about it all but she has not given any creative solutions so far and likes sitting in the "wait and see" lane.

Based on what you've said, I suspect your lawyer is thinking...

• This is likely to be a horrible, complex mess.

• There's likely to be lots of arguing, lots of blaming - people might even start taking legal action against each other.

• If the freeholder is ultimately found to be at fault - freehold owning companies often have no assets - so the freeholder might go bankrupt

So maybe the best thing to do is stand well back from the 'fight' and let others sort out the mess.

If they manage to sort out the mess within a month or two - maybe you'll want to proceed.

But if they're still arguing, blaming and fighting after a month or two - maybe you want to leave them to it, and walk away.

firsthomebuyer2023 said:

Question from me is: a) is there any scenario where the freeholder can guarantee I will not be liable for any subsequent works to the roof (due to this whole situation being their fault)

Has the freeholder admitted that it's their fault?

I would be very surprised if the freeholder simply says "Sorry - it was all my fault. I'll cover everyone's costs". 

Sadly, that kind of thing doesn't tend to happen. As I say, I think it's more likely that there will be fierce arguments, which might last for months and end up at a court / tribunal.

But I guess you can give it a try.

Jonboy_1984

I would instruct your solicitor to do no further work and start looking for another property. If they have it resolved at the freeholder expense (or your sellers via an agreed retention) within 30-60 days you can pick up from where you left off if nothing else has come up.

Section62

firsthomebuyer2023 said:

Question from me is: a) is there any scenario where the freeholder can guarantee I will not be liable for any subsequent works to the roof (due to this whole situation being their fault) and b) would my mortgage provider ever accept a property with an ongoing enforcement notice on it even if we could ensure where the liability stands in writing?

Worth bearing in mind that planning enforcement notices don't usually expire and councils typically don't withdraw or cancel them once corrective work has been completed - the idea being to stop people complying with the notice to make it go away and then quietly redoing the prohibited work.

Therefore if you purchase this property there's a good chance it will still have an active enforcement notice on it when you come to sell, which would mean your buyer (and their lender) would need to go through a process of checking the notice has been complied with and that no other action is outstanding.

Potential buyers (and lenders) who like an easy life may think that is more aggravation that the property is worth.