Buying ex-council leasehold flat. Exceptional maintenance charge.

[StillSmallVoice]

This isn't something I've done before, so not sure what is normal. I am in the process of buying an ex-council flat. The price was 135K - 145K. My offer, which was accepted was in the middle of that. It appears that somewhere in the next three years I'll have a bill of 8 - 9K for my share of a new roof and a couple of other things.

I'm pretty sure the vendor (who is an investor) knew about this, and I wonder whether this is the reason he put it on the market. My question to anyone who knows anything is whether we can renegotiate the price of the flat on the basis of this. If it was freehold I would, of course have to spend money on maintenance, but I know it is normal to re-jig prices if the survey throws up a problem.

Any insights would be appreciated. I am not someone who would ever make a 'cheeky offer' aka cf-offer)

I am a cash buyer, but only because I am pulling equity out of my own home to try to provide some housing security to my my low earning, but lovely son. So it is costing me quite a lot.

I really don't want to lose this flat.

You can negotiate prior to exchange of contracts but not after. If you've already exchanged contracts and you pulled out, you lose your deposit.

We sold a flat in exact same circumstances. In the end a relocation company dealt with the sale so not sure if this was negotiated on but we were fully expecting any vendor to want to negotiate on price knowing they would have this big bill in the future.

Thanks. I think I was hoping for lots of good news stories about how to beat'm down to a fraction of the asking price on the grounds that the whatever's

This should have been in the buyers pack before you exchange so you make a decision based on prior information. If the info has been withheld, I think I would want to know why my solicitor hasn’t acted in my interests.

Assuming you have not exchanged: If you think it should be £135,000 or below to reflect the expense, lower your offer. No-one else on a tight budget will be wanting to pay for this either so I would have thought there was room for negotiation. You are buying somewhere with a dodgy roof! What else could you get for £148,000? That’s the question. Of course the investor is getting rid. This is a massive chunk of profit gone. You won’t get the money back so I would pull out.

However, If you don’t want to lose it, is it a bargain? If so, is the cost of the roof reflected in the price? If it’s perfect in every way, just try and negotiate but I would be concerned that the roof repair cost will escalate if they find more problems when they strip off the roof. I wouldn’t be keen.

Well you cannot expect 50% off for a £8000 spend can you ?

Greensnail - thanks. Really appreciated because it is virgin territority for me.

In our case there was no particular problem with the roof, it was just that council were replacing all the roofs on our road as part of a program of routine maintenance. As i understood it our portion of the cost was agreed up front and would not change once it had been agreed.

Thanks, Bubbles.

The flat has a lot of space for the amount of money where we are in the South East. I don't want to lose it. I guess it comes down to hoe much we are prepared to do to get the kids to leave home.

Thanks, Bubbles. It is a 1960s flat roof. The other bit was new fire doors (presumably Post Grenfell)

Greensnail - thanks. I think the Mumsnet consensus is that I am being reasonable to try and renegotiate the price of the flat, however if I really want it I just suck it up (especially if I want my very charming but world record breaking ply grotty and revolting).

I’d find out as much as possible re the bill - is it an estimate for example? I bought an ex housing association flat four years ago knowing that a bill would come for new windows and some major works of “around £10k”. However four years on now the work has been completed we are still waiting for the bill and looking at between £25k and £40k. We have contested, gone to a tribunal, formed a residents association etc but are still expecting it to be high. Your solicitor should have flagged any potential of upcoming work in your buyers’ pack too.

You can renegotiate before exchange based on absolutely anything. Some reasons are morally unsound but can be financially justified.

This isn't, it's one of the key reasons for a survey and you absolutely should renegotiate. I also bought ex council, and am pretty sure that impending works were detailed by my solicitor, but was only £700 so not worth worrying about.

I would start by offering at least £8k less. Seller is obviously hoping you either wouldn't find out or wouldn't complain. Think about how long it takes you to earn £8k net!

Hi OP,
I'm assuming the information came out of the management pack which the landlord's managing agents put together. It's not at all unusual for buyers to ask seller to chip in when there is a large cost in the pipeline soon after completion. Clearly it's a negotiation - some buyer pull out, some sellers agree - and various other options in between.

Thanks all

I think I'll have a go at renegotiating the price of the flat.

Personally I would think very carefully about buying an ex council flat especially if the other properties in the block are not owner occupied. If most are owner occupied then you can fight the housing association more easily via tribunal. If you are the only one then they can charge what they want. Generally the charges are astronomical and you have no come back on the prices charged. It is nothing like the cost of maintenance on your own property. I would ask to see itemized service and maintenance charges and cyclical works for last 5 or 10 years to see what they are like. It is never ending ie £50 to change light bulb in shared hallway. It will be all new windows next and every couple of years full scaffolding just to check gutters. The £8k is an estimate it can easily double and there is nothing you can do. Some of our housing association properties have work that quadruples on estimate once they start work as the poster aboves windows. Surveys wont help as they do their work on planned cyclical repairs not when there is a problem shown by a survey.