Buying a council flat ?!

chenks

Today we are 2 months in baying the flat and received the last document before signing the contract next week.
The problem is that the council going to make a few renovating works to the building for the next 5 years. The cost of that works is around 10% from the cost of the flat, renovating the roof and etc.)
My question is: do I have right to ask the seller to reduce the price and how low?
If someone have experience in this just to give me any idea.
Thanks

Richard_Webster

Yes - try asking for the full cost of the work!

evelio

Asking for a reduction may be the obvious decision, but it may not be necessary.

Firstly, you may not be liable for the cost of major works. If the current owner bought the flat within the past five years through right to buy, the owner of the flat (soon to be you) is only liable to costs estimated in the lease. But the key here is: bought direct from the council within the past five years.

If the above applies, you should not ask for a discount - you are getting expensive improvements for free.

If the above does not apply, consider the fact that the major works ARE improvements. Any improvements will add to the future value of the flat.

There has been so much negative coverage in the press regarding major council renovation works to leasehold properties, and as a result, ex-local authority flats have less value. The reduced value is reflected in an asking price that carries the stigma of potential major works bills. As such, it is likely that a reduction is already factored into the price.

My suggestion would be, meet them half way. A discount is fair here, as you found out at the last minute. 5% would compensate you for future expense, whilst respecting the fact that you will benefit from the works in the future.