Solicitor doesn't believe the freeholder - Building Safety Act

lis1320

Just to add to my previous post, the height survey differentiated between higher risk buildings (18m/7 storeys) and relevant buildings (11m/5 storeys). Both need different certification I believe, and with the Building Safety Act coming into force in April this year, many sellers don't have the certification ready. Most probably don't know they need it until part way through the selling process. 

Our solicitor told us back in the spring that if the building was relevant, they would be unable to help us as there was so little guidance regarding this certification that many firms were not taking on such clients. The building ended up being not relevant, did not need certification, so we could proceed as normal (we ended up not proceeding later down the line due to ground rent issues).

It may be the solicitor is saying the building is not high risk so no certification needed, without knowing that relevant buildings need it too. If the solicitor did know this, they should have advised the seller to organise the certification earlier. 

I would ask your solicitor to e-mail the seller's solicitor regarding the building being relevant, as it is clearly over 11m. Refer them to the Building Safety Act 2022, Part 5, Section 117 and 118 which explains high risk and relevant buildings. They need to provide the certification. It's in the sellers best interest to get it as they will not be able to sell the flat without this. 

I'm not sure how long this would add to the process but unless the sellers have already started the certification process, I doubt it will be provided before your mortgage offer expires. I suppose you can re-apply but the rates will have changed, the flat might be valued at less by the lender etc. I do really feel for you, it's horrible to get your heart set on a place only to be messed around. It may not be done purposefully by the seller since they might have not known much about the Act,  but still not a nice position to be in. 

littlemissbliss

subjecttocontract said:

My take on the situation is this:-
IF the height limit is 11 metres (that's 36 feet in old money) then you have a problem. Logically you cannot fit 5 floors into a building that's 36 feet high so therefore the building exceeds 11 metres......measuring it won't change anything. Presumably if it exceeds 11 metres it needs a certificate. We suspect the freeholders dont have one. It's likely to take a considerable time for them to provide one.

It also likely means that all 400 flats on the development are currently unsaleable except to cash buyers but at a significantly reduced valuation. No one will be able to raise a mortgage if the building doesn't comply to regulations.

I suggest you talk to the e/agents & solicitor. Let's hope I'm entirely wrong.

That was my worry

As it stands the agency contacted me yesterday to say the vendors solicitors have responded to my solicitor with valid reasons as to why the documents requested are not required for this building. However my solicitor is off sick and i highly doubt she is going to move on her position. Why would she.

I am going to look at 2 new flats tomorrow so should anything go wrong i will have a plan B. The contract has been signed and sent, but its not been completed. I am kinda leaning towards one of these new flats anyway. This whole process has put me off and I wouldn't want to be stuck with a flat that wasn't sellable. What i don't understand is how are the other flats being sold, none are asking for cash buyers. Unless this is new policy. 

littlemissbliss

lis1320 said:

Just to add to my previous post, the height survey differentiated between higher risk buildings (18m/7 storeys) and relevant buildings (11m/5 storeys). Both need different certification I believe, and with the Building Safety Act coming into force in April this year, many sellers don't have the certification ready. Most probably don't know they need it until part way through the selling process. 

Our solicitor told us back in the spring that if the building was relevant, they would be unable to help us as there was so little guidance regarding this certification that many firms were not taking on such clients. The building ended up being not relevant, did not need certification, so we could proceed as normal (we ended up not proceeding later down the line due to ground rent issues).

It may be the solicitor is saying the building is not high risk so no certification needed, without knowing that relevant buildings need it too. If the solicitor did know this, they should have advised the seller to organise the certification earlier. 

I would ask your solicitor to e-mail the seller's solicitor regarding the building being relevant, as it is clearly over 11m. Refer them to the Building Safety Act 2022, Part 5, Section 117 and 118 which explains high risk and relevant buildings. They need to provide the certification. It's in the sellers best interest to get it as they will not be able to sell the flat without this. 

I'm not sure how long this would add to the process but unless the sellers have already started the certification process, I doubt it will be provided before your mortgage offer expires. I suppose you can re-apply but the rates will have changed, the flat might be valued at less by the lender etc. I do really feel for you, it's horrible to get your heart set on a place only to be messed around. It may not be done purposefully by the seller since they might have not known much about the Act,  but still not a nice position to be in. 

I know - but to be honest i have been put off by the whole process and found something i like better. The contract has been signed and sent to my solicitor but its not been completed with these enquiries. So I am hoping i can back out. 

As it stands the agency contacted me yesterday to say the vendors solicitors have responded to my solicitor with valid reasons as to why the documents requested are not required for this building. However my solicitor is off sick and i highly doubt she is going to move on her position. Why would she. In fact i am kinds hoping she doesn't accept it so i can pull out and move on. 

subjecttocontract

If the development consists of 400 flats it would be interesting to know if any/ how many have been sold in the past 12 months, which is approx the period that the latest safety legislation has come into being.

There are a few websites that will show recent sales & prices and you might like to check this out. One among others that I use is check my street......run a web search to pull it up. Then if you have a postcode it will provide the info. 

littlemissbliss

subjecttocontract said:

If the development consists of 400 flats it would be interesting to know if any/ how many have been sold in the past 12 months, which is approx the period that the latest safety legislation has come into being.

There are a few websites that will show recent sales & prices and you might like to check this out. One among others that I use is check my street......run a web search to pull it up. Then if you have a postcode it will provide the info. 

We see a total of 274 properties sold on Durrant Court. Average sold prices on Durrant Court are calculated per year and include all transactions for that year as available from the Land Registry. First sale was on Fri, 05 Jun 1998 and the latest sale was recorded on Mon, 21 Aug 2023

So there has been a recent sale
I am only guessing there is 400. The flat i am going for is number is in the 300s and their is a floor above. 

I just don't know why there would be a dispute is there is not a problem. Has there been any new policies since August? October maybe?

littlemissbliss

Hmm

As of October 1, 2023, new regulations regarding Building Safety Act 2022 will come into effect. One of the Building Safety Act's main goals is to stop structural failures and fires by ensuring regular and effective risk assessments for higher-risk buildings through building safety regulations.

I am wondering if this has had an effect. 

lis1320

littlemissbliss said:

Hmm

As of October 1, 2023, new regulations regarding Building Safety Act 2022 will come into effect. One of the Building Safety Act's main goals is to stop structural failures and fires by ensuring regular and effective risk assessments for higher-risk buildings through building safety regulations.

I am wondering if this has had an effect. 

Potentially - even if it’s not causing the need for additional documentation, it mamy be causing some confusion whilst all sides familiarise themselves with the updates.

Sending off a signed contract is normal practice, that way everything is ready for exchange day, with the solicitor just updating the date. If you have not exchanged, you can definitely back out. Ours called us on the day to ask for authority to exchange on our behalf and then called us after to confirm it happened. Your solicitor wouldn’t have exchanged without all enquires being settled and checking with you first.

silvercar

littlemissbliss said:

subjecttocontract said:

If the development consists of 400 flats it would be interesting to know if any/ how many have been sold in the past 12 months, which is approx the period that the latest safety legislation has come into being.

There are a few websites that will show recent sales & prices and you might like to check this out. One among others that I use is check my street......run a web search to pull it up. Then if you have a postcode it will provide the info. 

We see a total of 274 properties sold on Durrant Court. Average sold prices on Durrant Court are calculated per year and include all transactions for that year as available from the Land Registry. First sale was on Fri, 05 Jun 1998 and the latest sale was recorded on Mon, 21 Aug 2023

So there has been a recent sale
I am only guessing there is 400. The flat i am going for is number is in the 300s and their is a floor above. 

I just don't know why there would be a dispute is there is not a problem. Has there been any new policies since August? October maybe?

It isn't uncommon for numbers to start again at each floor level, a bit like hotel rooms. So there may not be 400 flats. Is there a WhatsApp or Facebook group for the development? That may yield some clues from other recent buyers or sellers.

littlemissbliss

Thanks Everyone.

I have pulled out of this sale.
Issue is there is nothing else on the market and i have been without a home for 6 months. 

Got my heart set on a different one but they don't allow pets !!!!!!