AIBU to renegotiate a property offer..

[Charliechoco]

Me and my partner put an offer down on an apartment, which was incredibly fair, we came in asking price.

However, since receiving the management pack, we noticed there are 20 years less on the leasehold than what was advertised by the estate agent. This means in a few years time, we will have to pay for a leasehold extension, which we did not factor into the price… We are at the top end of our budget.

Am I being unreasonable to renegotiate our offer to reflect the cost of a leasehold extension?

We were not considering properties that immediately required an extension, so it's quit frustrating, given we have already spent hundreds of pounds on legal fees.

We were also told we would own the Garden, which according to the pack, is not the case.

So you went to see it and they made out like the garden was included but now isn't? I'd be walking away due to that before I even thought about the leasehold situation!

Unless you've exchanged just pull out entirely

I would pull out

If the listing was incorrect I think there should be a case for claiming costs back off the EA. I don't know if this is something that can be done but you offered and incurred costs in the basis of false representation.

It would more likely be the seller who has a claim against them

I bought a flat 25 years ago with a concrete parking area which would have been big enough for a tiny garden and parking. It turned out upstairs owned half of it. The agent or solicitor returned their fees, (can’t remember which ) it wasn’t enough but it was something and I wasn’t up for a fight… paid for a new boiler which packed up within 3 days of moving in 😆
The sellers need to extend the lease. Bet they know it will be ruinous though.

Run away now.

Sounds dodgy - lease and land misrepresented upon advertising?

I’d be more concerned not having a garden though, they’re like another room in the spring and summer.

negotiate if you really like it, or consider to pull out and find something that ticks your boxes.

I would walk away from this one and look to recoup costs for the misleading advertising.

Essentially the property is not worth what you originally offered for it.

A property with 100+ yrs on the lease is worth considerably more than a property with an 80-ish yr lease.

Also, a property with a garden is worth more than one without.

These are MAJOR considerations and you should either withdraw completely or get a considerable reduction in price.

If you are OK to proceed without the garden space I would approach the estate agent, point out their errors, and make a lower offer based on the lack of garden, and with the expectation that the owner extends the lease. If you want the garden space I would pull out and also let them know I would be making a complaint to whoever is the ombudsman if they don't sort this (as it is false advertising) unless they return any costs you have incurred so far.

First of clarify facts- which is the correct info.
Then flag the discrepancy up- who made the error.
renegotiate through the sols of you want to go ahead- clearly stating how much you are dropping and why.
if you decide to walk away make a formal complaint to whoever made the false advertising error (presumably agent) and explain its cost you x in fees though their incompetence and ask for reimbursement

Honestly. Pull out. And give it no further thought.

You’re reliant on that new law being what it says on the tin. Look elsewhere.

The Garden issue you tag on is a major major issue, too. Especially if the price reflects the garden being owned

either would be enough to make 99% of buyers call it a day. You’ll just have to suck up the several hundred quid. It happens

I think its worth looking at recouping your costs based in proceeding on the basis of false information. Definitely raise the issue. Whether or not you pull out depends on whether you'd still like to have the property, definitely slash the offer though. The EA and the seller are basically one entity as the EA is the seller's agent.

I'd pull out of the sale. You have been given incorrect information and the price you've offered doesn't reflect the true value of the property.
It's a massive headache extending the lease, it's expensive. But you'll have no choice to do so if you bought the property as you can be denied a mortgage when it drops to a certain range, think its 80yrs.
That's probably why the seller is selling, they don't want the hassle/expensive.
Better to lose money now than down the line.
I'd make a formal complaint to the estate agent for miss selling the property. Those are 2 big "mistakes" that they made (or intentionally made to get a higher price and therefore commission. )

Does the difference in number of lease years affect your mortgage offer?

Its ridiculous they've made 2 big mistakes when listing. Id complain about that and obviously reduce my offer.

Not the same but when I first put an offer in for a house, the survey came back saying there was so much damp and the house was worth x, so the bank wouldn't offer me a mortgage based on a figure the house was no longer worth, so I reduced my offer.

My first flat the lease was under 80yrs but estate agent details were wrong and solicitor didn't pick up on it. Only found out 4 years later when I came to sell and new agent checked all the details. Cost me a LOT to extend the lease and freeholder had me over a barrel because I was on the market.

Walk away. There's legislation being worked on to improve rights of leaseholders and renewals but I don't think it's in place yet.

I lost fees on another flat when it turned out the owner didn't have a right to sell it (divorce situation from what I remember). Sometimes it's better just to accept it wasn't right for you, and shrug off the lost money. Don't chase a bad deal.

Op it is likely to cost a fortune, like 1000s to renew that lease. Personally I wouldn't want one with a lease that short

How could they be so misleading, sounds terrible. I wouldnt buy less than 100 years lease without investigating it, you might not even be able to renegotiate it at all. The garden issue is terrible, this sounda like a nightmare. If you do decide to proceed then I would not scrimp on the survey in case of what else is being hidden and read every letter of every piece of paper.

This! Also can you send them the bill reclaiming costs? Entirely their fault, and it sounds incredibly dodgy, even illegal (?!) what they’ve done and I wonder if it somehow breaches thinks like the money laundering etc?! I don’t know enough about it but know I’d be pulling out and sending them the bill!

Definitely renegotiate if falsely advertised and I'd be kicking off to the estate agent. The longer you leave a lease to renew the more expensive it will be, my friend spent just over £20k doing theirs. I would give a revised offer or ask them to extend it before they move out. I believe you have to have lived at a property for 2 years before you can apply too.

Not the answer you will want as your already invested, but as a previous lease house owner, I would steer clear and go free hold I would never get a lease again, so much more trouble and expense.

Those are very big discrepancies. I wouldn't buy a flat without a garden when I'd been told otherwise, just because of sunk costs. And I'd look into making a claim against the estate agent.

I wouldn't re-negotiate, I'd pull out.

Walk away. As others have said leases below 100 years are expensive to extend.
The current government are working on new legislation to make it cheaper and easier to buy this lease, and whichever party is in power will be tackling this but for the moment I would run.

What else do you not know about? Management agency fees for shared areas? If you are absolutely set on the property the current owner can start the extension and transfer it to you. Do not use an informal route.

Checkout the National Leasehold Campaign group on Facebook, they have plenty of solid advice, experience and information.