Solicitor refused to act, as the building is 5 storeys high

Halabala9

Hi Everyone,

My offer just got accepted, however the solicitor that I had lined up, just refused to act, as the building is 5 storeys high and they said they don’t take such buildings. What is the problem? It's a £150k leasehold (well over 900 years left), 2bed flat, CASH PURCHASE, the building has got EWS1 A1 certificate (apparently).

I am trying to find out what is going on. The estate seems perfectly fine, can’t see anything suspicious here. I will do a cash purchase, but want to make sure that this building is mortgage-able just in case. Apparently it has got EWS1 A1 certificate, so I thought that is all I need but what is the problem with it being 5 storeys? Does it mean I won’t get a mortgage if needed in the future?

Regards

RHemmings

I don't know about this, but being curious I googled and found this: 

https://www.legalfutures.co.uk/latest-news/conveyancers-refusing-to-handle-high-rise-transactions

Conveyancing firms are refusing to handle transactions involving flats in blocks with five or more storeys because of concerns about their liabilities under the Building Safety Act 2022 (BSA), it has emerged.

Rob Hailstone, chief executive of the Bold Legal Group, said he could “fully understand” why some law firms were refusing the work because there were “far too many unknowns at the moment”.

(From May 2023)

theartfullodger

Those are his terms: Either find a different solicitor / conveyancer who will handle it or do all the paperwork yourself (entirely possible) . 

But I'd regard the solicitor's response as a significant red flag.  I'd also speak to a couple of mortgage brokers enquiring on what terms (if any) they could provide YOU with a mortgage (yes I know you don't want one, but asking it that way is more likely to get an answer...)

https://www.gov.uk/buy-sell-your-home/transferring-ownership-conveyancing

Do you gamble much ?? (I ask as I do, and have, once buying a house - views of sea & mountains) at auction without even seeing inside it.)

Halabala9

theartfullodger said:

Those are his terms: Either find a different solicitor / conveyancer who will handle it or do all the paperwork yourself (entirely possible) . 

But I'd regard the solicitor's response as a significant red flag.  I'd also speak to a couple of mortgage brokers enquiring on what terms (if any) they could provide YOU with a mortgage (yes I know you don't want one, but asking it that way is more likely to get an answer...)

https://www.gov.uk/buy-sell-your-home/transferring-ownership-conveyancing

Do you gamble much ?? (I ask as I do, and have, once buying a house - views of sea & mountains) at auction without even seeing inside it.)

I don't gamble, I just want to buy my first property, as my landlord is currently selling the one I am renting and I am fed up of wasting money on rent.

To be honest after months of searching, I am close to the point when I am just simply going to leave that f... up country. Everything related to properties seems like a minefield. Either some dodgy ground rent (doubling, over £250 a year which becomes AST etc.), cladding issues and so on. I finally found a property that looks alright, thought to do a cash purchase to get it sorted quickly and guess what? My solicitor showed my the middle finger (litterally now got an email from her again, saying that her firm made that decision last month).

Seriously, this is getting riddiculous. The only reason I am going to stay for now, is a very fat payrise I just got 2 weeks ago, as I was close to throw the towel but if I don't get that flat, even my fat salary won't help to keep me here.

Sorry for moaning, but I am seriously fed up of that...

loubel

 Some firms have chosen not to take on cases which could be affected by the Building Safety Act. Some have had no choice as their insurers won't cover them. Plenty of firms will still take them on though so you will find a new solicitor.

Solarsystem24

I never brought a flat, but I know from personal experience and what I read that the quality of the builds (and often these are refurbished office blocks) and subsequent maintenance of them have plummeted. There were some apartment buildings in the news which had to be torn down just after being built and people already were renting or brought flats. One building looked like the tower of pisa. I had to move out of a forth floor flat after just 3 weeks of it opening because of serious problems including sewage leaks, gaps between window frames, faulty electronics and windows not staying open, which they wouldn’t fix. It was advertised as a new build, but I discovered after moving in, it is a badly renovated tax office.

All these new apartment buildings are suddenly popping up as the government gives build to rent loans. A lot of charlatans and chancers take advantage, get a loan, keep most by cutting back on building (or often renovation of office buildings) and try to make the money back through rent and sales by appearing “boutique” and luxurious. It’s a massive scam and most of these apartments blocks won’t be here in 50 years. Sewage leakage is a common problem in many. So if lawyers refuse to deal with flats as they considered it high risk, maybe it’s a sign it’s also too risky for you.

EssexHebridean

It is entirely down to individual firms what work they choose to take on, and they are perfectly within their rights to refuse to act for you on a matter for whatever reason. I very much doubt anyone "showed you the middle finger", although if they were to read this thread, they might well wish that they had! 

Either go ahead and buy in the UK (although allowing for the contempt you appear to hold it in perhaps tieing yourself to living here isn't really a good idea?) by finding a new solicitor - there will be plenty who will be more than happy to act on a high-rise - or relocate abroad, and learn about al the restrictions the legal system of the country of your choice has, instead.

Halabala9

Solarsystem24 said:

I never brought a flat, but I know from personal experience and what I read that the quality of the builds (and often these are refurbished office blocks) and subsequent maintenance of them have plummeted. There were some apartment buildings in the news which had to be torn down just after being built and people already were renting or brought flats. One building looked like the tower of pisa. I had to move out of a forth floor flat after just 3 weeks of it opening because of serious problems including sewage leaks, gaps between window frames, faulty electronics and windows not staying open, which they wouldn’t fix. It was advertised as a new build, but I discovered after moving in, it is a badly renovated tax office.

All these new apartment buildings are suddenly popping up as the government gives build to rent loans. A lot of charlatans and chancers take advantage, get a loan, keep most by cutting back on building (or often renovation of office buildings) and try to make the money back through rent and sales by appearing “boutique” and luxurious. It’s a massive scam and most of these apartments blocks won’t be here in 50 years. Sewage leakage is a common problem in many. So if lawyers refuse to deal with flats as they considered it high risk, maybe it’s a sign it’s also too risky for you.

I get your point and I agree that some buildings of flats are just pathetic (the one I rent now is a prime example), but that estate is over 20 years old and the quality back then was way better than now. I have spoken with one guy living there for over 4 years and he said that he hasn't got any problems, the management is great, they have got a whatsapp group setup with them to report issues. Generally when I saw it, it seems solid, it's not some dodgy office conversion, the estate is fenced off with fob entrance, clean, the building is well kept. Considering all flats / buildings I viewed, that one seems really alright.

Albermarle

Mike997 said:

theartfullodger said:

Those are his terms: Either find a different solicitor / conveyancer who will handle it or do all the paperwork yourself (entirely possible) . 

But I'd regard the solicitor's response as a significant red flag.  I'd also speak to a couple of mortgage brokers enquiring on what terms (if any) they could provide YOU with a mortgage (yes I know you don't want one, but asking it that way is more likely to get an answer...)

https://www.gov.uk/buy-sell-your-home/transferring-ownership-conveyancing

Do you gamble much ?? (I ask as I do, and have, once buying a house - views of sea & mountains) at auction without even seeing inside it.)

I don't gamble, I just want to buy my first property, as my landlord is currently selling the one I am renting and I am fed up of wasting money on rent.

To be honest after months of searching, I am close to the point when I am just simply going to leave that f... up country. Everything related to properties seems like a minefield. Either some dodgy ground rent (doubling, over £250 a year which becomes AST etc.), cladding issues and so on. I finally found a property that looks alright, thought to do a cash purchase to get it sorted quickly and guess what? My solicitor showed my the middle finger (litterally now got an email from her again, saying that her firm made that decision last month).

Seriously, this is getting riddiculous. The only reason I am going to stay for now, is a very fat payrise I just got 2 weeks ago, as I was close to throw the towel but if I don't get that flat, even my fat salary won't help to keep me here.

Sorry for moaning, but I am seriously fed up of that...

I can understand you are fed up, but if you think other countries do not have similar/worse issues with lawyers, bureaucracy etc. you might be in for a surprise if you move to one.

Halabala9

EssexHebridean said:

It is entirely down to individual firms what work they choose to take on, and they are perfectly within their rights to refuse to act for you on a matter for whatever reason. I very much doubt anyone "showed you the middle finger", although if they were to read this thread, they might well wish that they had! 

Either go ahead and buy in the UK (although allowing for the contempt you appear to hold it in perhaps tieing yourself to living here isn't really a good idea?) by finding a new solicitor - there will be plenty who will be more than happy to act on a high-rise - or relocate abroad, and learn about al the restrictions the legal system of the country of your choice has, instead.

I appreciate that I sound rather harsh with such statements. But honestly, something is broken in the property market in this country and nobody seems to bother to change anything. In 2022, when I was trying to rent in Manchester, after 1h when a property popped up on the market, it was usually gone, as people take it over the phone. I finally got one, by paying 6 months upfront, and after 2h on the market, I was the 40th person that wanted to take it.

Now when I finally want to buy something, I go through doubling rents, cladding issues, properties that are falling apart, solicitors that are refusing to act, because the government makes the already sick property market situation even worse. Sorry, but it's not how a modern, civilized country should operate. If I a person  that is working hard, paying taxes to keep things moving, can't even secure such basic necessity like a place to live, then something doesn't work here.

daveyjp

The Building Safety Act requires superior landlords to provide lots of information, more form filling and red tape, to ensure leaseholders don't end up paying for building problems which should have been identified during the design and construction process.

It is new legislation which hasn't been tested in court and solicitors will rightfully be wary they are being asked to check all this new paperowk during the conveyancing process and the conditions of sale, leases etc will no doubt require updating to include reference to the new law.

Part 5 is an example of what is covered.

enjoy!

https://www.legislation.gov.uk/ukpga/2022/30/part/5/enacted