Offering a reduced price close to contracts

our_des

By any chance is the property at Leeds Dock? Beware of the hot water tanks across the different blocks if it is! It’s a common problem that’s caused thousands of pounds worth of damage and inconvenience to residents repeatedly as some buildings have had more burst than others 

FTB_Leeds

DullGreyGuy said:

FTB_Leeds said:

The building was built in 2007 and has had the same Oso boilers since then.

Is this a boiler? If it is then at 18 years old its coming near to end of life by most standards anyway so you should have been budgeting its not to distant replacement. A google just shows Oso water cylinders though not boilers and life expectancy is less obvious. 

EoW typically has the second highest excess in Home insurance and can be the highest in Block insurance. £5k is far from exceptional and not particularly uncommon on a property thats experienced prior claims. I recall a few threads on here about similar sized excess for EoW claim in flats, unfortunately for them it's normally found out after the problem has occurred unlike you. 

I think asking for £5k off when looking to replace the aging system will be under half that is far from reasonable but this is house buying, you dont have to be reasonable.

user1977 said:

So the excess is £4500 higher than expected, but split 73 ways, and even then only if there's a relevant claim? Not sure your sums make sense.

Is it split 73 ways?

Our lease is silent on who pays the excess in the event of a claim. In at least one prior case on here just the two flats impacted by the loss were contributing to the excess 

Thank you, from what I’ve found the oso hot water cylinders typically have a life of 20-25 years. My major concern if the defects that were flagged 6 years ago and the fact that the splitting is hard to identify until you have an issue, which is far from ideal since an inspection might not highlight it. I am being harsh with regards to asking for double off the property then what it would cost to replace. Maybe it’s something I spend the weekend on and have a think about rather than making a rash decision immediately after finding out.

DullGreyGuy

FTB_Leeds said:

DullGreyGuy said:

FTB_Leeds said:

The building was built in 2007 and has had the same Oso boilers since then.

Is this a boiler? If it is then at 18 years old its coming near to end of life by most standards anyway so you should have been budgeting its not to distant replacement. A google just shows Oso water cylinders though not boilers and life expectancy is less obvious. 

EoW typically has the second highest excess in Home insurance and can be the highest in Block insurance. £5k is far from exceptional and not particularly uncommon on a property thats experienced prior claims. I recall a few threads on here about similar sized excess for EoW claim in flats, unfortunately for them it's normally found out after the problem has occurred unlike you. 

I think asking for £5k off when looking to replace the aging system will be under half that is far from reasonable but this is house buying, you dont have to be reasonable.

user1977 said:

So the excess is £4500 higher than expected, but split 73 ways, and even then only if there's a relevant claim? Not sure your sums make sense.

Is it split 73 ways?

Our lease is silent on who pays the excess in the event of a claim. In at least one prior case on here just the two flats impacted by the loss were contributing to the excess 

Thank you, from what I’ve found the oso hot water cylinders typically have a life of 20-25 years. My major concern if the defects that were flagged 6 years ago and the fact that the splitting is hard to identify until you have an issue, which is far from ideal since an inspection might not highlight it. I am being harsh with regards to asking for double off the property then what it would cost to replace. Maybe it’s something I spend the weekend on and have a think about rather than making a rash decision immediately after finding out.

If you buy the place and replace it tomorrow you are losing 2-4 years of life. The new cylinder could well be more efficient so if you wanted to be reasonable it would be up to c15% of the cost of a replacement less your energy saving. 

eddddy

I guess the money-related considerations are...

• You might need to install a new boiler

• The flat(s) upstairs/next door might not install a new boiler(s) meaning there is a risk of those 'exploding' and damaging your flat, leaving you with a £5k excess to pay (but see below)

• The annual insurance premium might be much higher for this block than for similar blocks, due to the claims history (and you will have to pay a portion of that higher premium)

BUT... if the flat(s) upstairs/next door have been put on notice that there is a risk of their boilers exploding, maybe you can claim that they are negligent if they don't replace them, and therefore claim any £5k excess from them

BUT... that would also mean that you are negligent if you don't replace your boiler, so if your boiler explodes - others might try to claim the £5k excess from you.

eddddy

Regarding insurance excesses...

Does the lease explicitly say whether the leaseholder (i.e. you) pays the excess or whether it comes from service charge funds (i.e. it's split 73 ways)?

If the lease doesn't say anything about excesses, and the freeholder charges the excess to you - you could try challenging it at a tribunal.


In theory, the tribunal will scrutinise the wording of the lease to determine which is the most appropriate solution.

Tribunal decisions have gone both ways in the past - sometimes deciding that the leaseholder must pay the excess, and sometimes deciding that the excess comes from service charge funds.

But I don't know if that's because of...

• Different wording in different leases
• Different opinions (or biases) by the different judges overseeing each tribunal
• Better or worse arguments put forward by each party at a tribunal

Cit6

Buying a flat? I would be far more worried about the ever decreasing lease, ever increasing service charges etc etc etc etc etc

ReadySteadyPop

FTB_Leeds said:

The excess is the responsibility of the tenant who’s property the leak relates too. So if it was my boiler then I am responsible for the excess.

Are you sure your doubts relate fully to the boiler issue, or do you feel that you may be overpaying for a flat that might give you problems or be difficult to sell in future?

ReadySteadyPop

our_des said:

By any chance is the property at Leeds Dock? Beware of the hot water tanks across the different blocks if it is! It’s a common problem that’s caused thousands of pounds worth of damage and inconvenience to residents repeatedly as some buildings have had more burst than others 

Blocks like that are definitely for renting in not buying, let the landlord pick up the tab for water damage/boiler replacement.

subjecttocontract

I'd be more concerned about an upstairs flat leaking and flooding the flats below than my own breaking. If buying a flat always buy one on the top floor.

ReadySteadyPop

subjecttocontract said:

I'd be more concerned about an upstairs flat leaking and flooding the flats below than my own breaking. If buying a flat always buy one on the top floor.

Lived in a block once where the top floor roof got damaged every year by strong winds, cue the owner coming round all the doors asking for people to chip in to cover it, just an expense you don`t want really.