Last-minute wrangle over major works - help!

tonyade

Hello guys.

We are in the final stages of buying an ex-local authority property (we're renting at the mo'). We have been advised by the council that it plans to undertake major works by 2010 (to meet some ham-fisted government target). The seller has agreed to pay for half of the projected costs (£5,600). They have agreed to a Rider of £3,000... provided the works go ahead before 1 January 2010. Obviously we are going to tell them it must cover the whole of the year. However, I've just been on the phone to the council and looked on the internet, and it's likely that the council won't be able to meet this target. I should try to get an out-and-out reduction of £3,000, right?

silvercar

The projected cost could escalate, the works could be delayed for years. In the mean time the estate gets shoddier and property values fall.....

Personally I would walk away as soon as I heard the words "LA" and "major works" in the same sentence.

otter1_2

tonyade,

Read about about government's Decent Homes target here: http://www.communities.gov.uk/housing/decenthomes/. You should speak to your solicitor to see what the council (and the managing agent if they have set up a third party company for this) are saying in their information pack. We have just bought an ex-LA property and there are roof works pending, for which our solicitor agreed a full retention, as they have been costed (and residents were notified of the likely costs a year or two ago) but not carried out yet.

Try to stop thinking about is as '2010' and start thinking of it as '18 months time', as it helps to focus the mind! There should be some idea of the costs involved by now and the seller should have anticipated the planned works impacting on the price of the property. As you were not aware of the major works when you made your offer, I don't see how it could be unreasonable for you to want to re-negotiate bearing in mind the forthcoming bill which is going to land on your doormat if you purchase.

silvercar,

You'd be steering clear of all ex-LA places altogether then, as every council in the country is faced with meeting this standard by 2010. That's your prejudice and that's fine, but as the OP is obviously of a different view as they are some way down the track of buying such a property, that's not particularly helpful.

silvercar

silvercar,

You'd be steering clear of all ex-LA places altogether then,

Wrong, I actually own one, but it is not subject to any major works, not on an estate, in an OK ish area and in decent condition. Nothing against ex- LA properties, in fact they often have a higher build standard than some privately built properties. You just have to make sure you get the right one.