Anyone up? New house crisis!

[Kat256M]

Ok I can't sleep and I need opinions here!

We are in the process of buying a flat. Today, I noticed that another flat came on the market on the same building but £50k less than we are paying. I called the agency and they told me it was cash buyers only because they has issues with mortgages...weird as ours was easy to secure.

They just updated the listing to say that they expect some internal work to be done in 2024 and it would cost each flat about £10k!! Explains the issues with their price. Our seller never disclosed this! I received some paperwork yesterday and there it is buried a study from 2017 about a party wall needed to be upgraded or something. Maybe that is it? But they said nothing about that imminent cost that would be huge for us. Is it unreasonable to be soooo annoyed?? I sent our estate agency a strongly worded email and I am waiting for a reply.

What should I expect back? Price reduction? By how much? Or is it normal to try and hide things like that? I feel like they tried to take advantage of us and we just got lucky with the other listing.

Not sure what floor the other flat is on but as it is higher than yours could need additional paperwork. Had a colleague recently turned down for a mortgage as the flat he was purchasing needed paperwork to prove it was safe in a fire !! Which the seller couldn't provide at the time.

I’d worry that the cost could go higher than £10 ,000 especially if I would struggle to find the 10 grand

This probably isn't very helpful but it's why I've never bought a flat, you can't predict what costs may come your way if the freeholder decided to do work - at least in a house it's all yours and you can have an idea of what's potentially going to cost you and often able To get it done at your need/when appropriate

Upcoming works is an issue for your solicitor to probe. You need your answer in writing from the other side's lawyers if you are going to rely on it. Don't rely on a phone convo with an EA.

'They are on 2 month notice and we don't need to be in until May. No chain at least!'

You are aware that this does not mean they must leave after 2 months aren't you? The 2 months is just notice that the landlord intends to take possession, it's not a notice to leave, only the tenant or a court can end the tenancy. He could in theory be there for a long time yet. This would be raising bigger flags than the £10k charge. Rentals are few and far between, so it's not that easy for tenants to find new places.

Are there other neighbours in the block you can talk to? I’m always suspicious when there is more than one for sale in a block.

Is it a relatively new build flat? There is a possibility that it has fire safety issues and will be undergoing remediation. Your solicitor should be all of this in any event and should be asking questions of the seller. Not telling the truth about hidden costs is a massive red flag so do not proceed to exchange until you know what is going on.

It is a 2003 flat but no cladding on the building, has the forms to prove it. It has wooden balconies but that doesn't raise the fire risk enough to be an issue, we checked from the beginning because I was worried about cladding work wtc.

I'd be wary.. about the poor tenant that's in situ and doesn't have to allow viewings and will be made homeless and doesn't have to leave unless gone to count. It's not vague it's lived in. Your sellers are having their cAke and eating it .selling whilst charging rent

When I bought my house the survey picked up a problem with the roof. The owners had spray on insulation done and it was then technically not mortgageable due to it now needing new wooden parts in the roof. The mortgage company would only lend me the money if I got the roof replaced in X months from when I moved in. They valued it £12k less than I offered and would only lend me that amount. So the seller accepted £12k less. When I moved in and got the work done it came to just under £10k so I contacted the sellers and sent them the extra £2k. Does your mortgage company have a similar rule? Is this why there is an issue with mortgages on the other flat?

As you’ve not exchanged go back with a lower offer , to cover estimated repair plus 50% as costs will rise, at the very least. Offer less if you feel that’s right or view the other flat and get 50k off. Don’t proceed at your current price.
Your solicitor should have drawn your attention to the report but you need to read every bit of house purchase papers in detail. It’s time consuming but can save you ££££s.

As Sewfrickinamazeballs says, don’t rely on the tenant being out in two months. They can be given a Section 21 notice to quit but they don’t actually have to leave until ordered by the court, which (with current backlogs) could take months. Given that, and the looming uncertainty over costs, I’d walk away.

I know how soul-sapping and nerve-racking it is to buy a home. But better to cut your losses now and find somewhere much less complicated than face big problems down the line.

As a bathroom fitter, the 'around 10k' is the biggest danger I can see here.

Construction costs and materials have been soaring up for the last couple of years, even if they have a quote from a construction firm, it will be out of date by now and cost more by now.

Upcoming works have to be disclosed in the pack from the management company of the leasehold.

Have you had that yet?

Lease length. Cash only would say to me it's got under 80 years left on the lease perhaps as low as 40.

I'm a bit unclear how you found this out

Are you saying that each flat in the block needs £10k worth of work but this hasn't been disclosed to you? Did the mgmt co have it on their list of planned works?

Your solicitor should be requesting an LPE1 form from the vendor.

That will give you info about lease / service charge / upcoming planned work.

Don’t exchange contracts until he has left and you have evidence.

Why not go and view the cash only flat? If its the same EA selling then get a friend to book if you are concerned. They might ask if you know its cash only just say yes and thats not a problem. Maybe its as simple as they have been messed around with people being declined for a mortgage and will take less for a quick and simple sale. No one will know until you view.

It would be for your solicitor to read the docs and find the £10k payment. I would say it would be reasonable to reduce offer by the £10k. You say it might not end up being £10k so I am not sure where the £10k figure is coming from but if thats the expected figure i think you would struggle to get more.

Get a survey done and view the flat above.

When I sold my house the buyers solicitor sent me a huge wedge of papers I had to complete - asking questions about when the windows were installed and any guarantee, age of boiler and last service etc etc plus they also asked if I knew of any future planned works in the area which may impact on the property. As a housing estate was going to be built on the huge field opposite my house I couldn’t really lie and was totally honest (fully expected it to kill the deal).

The seller should have included that information in the forms your solicitor sent them (which would then have been forwarded to you) and your solicitor should have gone through those plus all the paperwork in the management pack and advised you accordingly re: any scheduled works.

For what it’s worth, a cousin lives in a low rise block of flats and last year was contacted by the management company saying all the balconies needed replacing - a huge job and would cost each flat £15k (!!). For the £10k you’ve been asked for and the fact you say the balconies are wooden, just makes me think it could be to do with the balconies but of course I could be putting 2+2 and getting 6.

Not the point of the post I know but you have a baby and you’re spending 350k on a FLAT?

That is a decision you will regret. You could get such a lovely house with a garden for that.

My brother had a really similar issue and it actually ended up costing each flat 30k. It was a nightmare for everyone. They’ve moved now into a house and it’s like the most perfect relief that they don’t have a management company hanging over them.

I would walk away. And I would absolutely not buy anything leasehold.

They should but the previous owners of my home got away with answering everything "don't know"

But you don't know where OP lives!? You'd hate to know how much my FLAT cost 😂

Fire safety issues requiring remediation are not limited to cladding. The issues are much wider and include replacement of wooden balconies and fire breaks within the walls.