Walking away from house purchase

[Neet90]

So we have been on and off the market for a year and a half, trying to find the right house and have our sale line up with our onward purchase which they finally have, but now I think we will end up walking away.

We found a house over budget but just about doable, it's in a nice location, lovely big garden, detached, driveway for 2 cars and 5 bedrooms making it bigger than any other house we had seen, but it has a cellar prone to groundwater flooding.

Of course we were concerned about the water issue in the cellar, the owners said there was a spring under the house but claimed they were fine using a sump pump from time to time. We went ahead and offered hoping that our minds would be put at ease.

We were able to get our mortgage offer but enquiries with the council, water board and environment agency showed that they were unaware of a spring or a particular flood risk for the house. A cellar company that agreed to have a look said that there was a well under the house and likely a perched water table and suggested a cell membrane drainage system coating 15-20k but doing that wouldn't make the room habitable as it's too low.

The building survey didn't seem too concerning other than wood rot, but our telephone call with the surveyor was. He said that even if we could afford to do the house up, the flat roof 2 storey extension and flooding cellar in particular would put future purchasers off and neither of them would be matters you could fully solve. He said there were a lot of risks and if it were him he wouldn't buy the house and suggested that for us to have a fighting chance we would need to get it for 25-30k less than we offered.

We contacted the agent about a reduction but because the cellar was a noticeable issue they feel it doesn't warrant the reduction suggested. Because the house is at the top of what we can afford we need to know if our circumstances were to change we would be able to sell it without having to wait ages or make a big loss, I also worry about the ongoing risk of water damage even if you install a system to try and keep it at bay or the risk of flooding which would also mean unaffordable insurance premiums.

I appreciate the sellers probably think we are being a pain and I do feel bad. Our revised offer was at the price the surveyor suggested to us on the phone, he has apparently spoken to the estate agent also but they don't believe the survey itself (which didn't alarm us much either) or whatever he has said warrants such a reduction. I think we ought to walk away based upon what the surveyor has said and the fact we would never have full peace of mind about the flood risk but I worry we won't find such a big house elsewhere, also we will lose our buyer and be back at square 1, plus our daughter is meant to start school this year so I had hoped we would have exchanged this summer so we knew what was happening address and school place wise.

I know I will worry about any house move as it's such a big step but I guess I just want reassurance that we should walk away, the house would be too much hassle, it's all meant to be and things will work out in the end.

I'd walk away. Maybe go for a smaller house with potential for extension. You can spend the extra money when you are ready.

Just leave your reduced offer on the table.
When the owners realise they can’t sell the house easily, I wonder if they will come crawling back to you and accept your reduced offer.
How desperate are they to move ?

Chains are a real pain, I’m house hunting atm and I do make a point of looking for houses without a chain to make it all more bearable.

Walk away. Yes that's pants for the sellers but that's life. You are spending a huge amount of money and it's got to be right for you.

You probably won’t find such a big house elsewhere but that’s because this one has a HUGE compromise to it. I think you have been very thorough and sensible with your investigating. Personally I don’t think I would buy it. The damage done by flooding is immense. The sellers will be gutted but presumably knew the risks when they bought the house themselves. Good luck whatever you decide.

Also with brexit there is mass uncertainty. Interest rates could rise, inflation could increase, jobs could be less secure, houses will fall in price . I wouldn't be taking on such a project that stretched me in times of uncertainty.

Walk away. Flooding issues are going to get worse not better with climate change.

Moving is always stressful, it’s such a major financial decision, if you don’t feel comfortable and with the circumstances I can understand why, you should walk away, I expect they had already priced the house to reflect this as you say you cannot buy a 5 bed in the same area for the price.

We live in a 5 bed house, it’s a lot of work, even with having a cleaner a few hours a week. Huge amount of council tax. Get somewhere smaller would be my advice!

Walk away. There are lots of ways to have a big house for your money - living on busy road, buying in an undesirable location, buying a house with flood risk etc, but what’s the point? I’d rather have a slightly smaller house that feels secure and stress free.

I worked in the groundwater team of the environment agency. It's not surprising that no-one has record of the spring/high groundwater, it's not something that is recorded until it's reported, although sometimes maps show spring lines and names like 'spring street' can be a clue. It can be a very localised problem so other properties might not be affected, or if they don't have a cellar it might not be happening elsewhere. Groundwater tends to move up and down seasonally. It's often highest around March and lowest in September, obviously that depends on how wet it's been but it's a general rule. The cellar might only be damp in some years but fully flooded in others. It's not like a surface water flood though, as once water gets to the ground surface it will drain away or you can start pumping to empty a cellar.

Given the problem wasn't hidden I guess that the house was priced accordingly and the owner won't want to drop the price further for you. If you can't afford it or would worry constantly then it's not the house for you. I mean that in the nicest possible way, you need to feel comfortable in your own home.

Thank for your comments and for the reassurance!

@Neet90 I would walk away too. You may not get buildings insurance either as the cellar is already flooded. Friends of mine had this happen to their new house and were told it would hamper their efforts to sell in the future. Theirs was down to their neighbours cutting down some old trees to build a new house and without those trees drinking the water, it had to go somewhere which was friends cellar!

As the house is at the top of your budget, it sounds like you wouldn't feel genuinely happy there anyway

Well it sounds like you've made your decision really and it definitely sounds like the right one to me.

Far too risky, but I really understand your disappointment. There will be others, but likely not a massive 5 bed.

We were in almost exactly the same position last year, walking away from an apparently dream home, after having an offer accepted, then discovering a big issue which could have been fine - but could have become a nightmare for us. Again we were at the top of our budget and had it gone wrong then we would have been stuffed.

It's hard to let go of a dream, particularly if you have invested a lot in it emotionally, and I still cant go anywhere near "our" house, without waves of regret, but ultimately I think that we made the right decision for us.

Doesnt the fact you're getting such a big house for the money when you wouldn't usually mean the price reflects the compromise?

We are in the process of upsizing to a similarly sized house which seems ok survey wise. It’s affordable for us, but I’m still anxious about it in terms of the bigger picture of rates and the economy. It needs a lot of (cosmetic) work and we have funds. There is no way I would take on the house you’ve described above. Not worth the headache!

The house had been up a while and then reduced so it then showed on our rightmove search and it wowed us. The cellar was definitely a noticeable issue but we were generally clueless on the matter and the seller had originally downplayed to us how often water came in, how often there were puddles or worse and much the sump pump was used. I honestly hoped that the survey etc would ease our minds but it made us realise how much it could go wrongand how it would always be a downside even if we made the rest of the house perfect. We have made our decision but I appreciate the comments and reassurance so thank you, now to tell the estate agent, our buyer and solicitor, beginning to wonder if we will ever move.
Thanks again everyone!

OP when buying a house (or any major purchase) I work on the theory.....If in doubt, don't!

Your gut feeling never lets you down. I'm looking for a house too and so far have seen a couple with 'doubts' so have moved on.

Quite often if there is a 'doubt' something better often comes along. Good luck in your search for the right house. ;-)

So I spoke to the estate agent to say we were going to have to walk away and now they're querying if there is a middle ground, I think they're keen to keep the chain in tact as they stand to get commission for the 3 most expensive that they are the agent for. We had honestly made our minds up based upon the discount the sellers suggested yesterday. I'm still thinking it's an unsolvable problem but worried we may regret it whatever we do.

Sounds like the right decision. I think the best favour you can do for yourselves is make a conscious effort to move on from this one. It came with a massive compromise. You want to buy a house without that massive compromise, so you need to come to terms with settling for a smaller house, probably for a similar budget or not far off.

So I've just had a call from the estate agent and the sellers have agreed the lower offer we suggested a few days ago, I guess I should be excited but I convinced myself over those few days that we would be better off without it. So confused. The house will never be perfect but it's good of them to agree to the reduction. No idea now.

Ohhh that’s tricky! Is the lower offer enough to sort things out? And does it negate any potential issue selling in future? You’re going to need a bit of thinking time/space. Maybe say that you will think over the weekend and get back to them?

Is it an old Victorian coal cellar? So was never meant to be "dry"? Is it something you could actually just fill in and not use when you came to sell the house or is the space down there critical to the overall house?
We and all our neighbours have old coal cellars and sump pumps and every few years when it rains a lot the sump pumps start to pump the water out when the water table rises but it has never been a big problem. Re flat roofs, I think they just have a certain life of around 20-25 years depending on what was used e.g. felt/modern coating materials. The point about a big old house is that it is always going to cost a lot to maintain e.g. heating costs/things break etc but then you can have a lot of joy living in one.

Now they've reduced it the price is similar to that of a nice 3 bed so because of that and the garden we are confused again.

The cellar is under the living room and accessed under the stairs, there is a manhole cover in there potentially with a well or something (really not clear) and the sump pump is sat in a hole smashed in the concrete sub floor. When the surveyor went there was a puddle on the floor and the woodwork is affected by the damp in the cellar and apparently the sellers said to him this is common and they often have water in there.

The reduction would cover the cost of installing a waterproof membrane system but surveyor is dubious if this is worth the cost (almost 20k) as it would be too short to class as a room and comes with a 10 year guarantee but would only manage rather than solve the issue. Im not sure about filling it in with concrete as where would all the water go then? The flat roof, dodgey windows and polka dot render would still remain issues which the surveyor highlighted as things affecting value and saleability on top of the normal things you would do in a home over time (kitchens, bathrooms, flooring, decorating and wall knocking through).

I feel the discount is fair of them but they weren't keen originally so we've had a few days assuring ourselves it is a no go. Surely if i loved it i would feel excited, but do I love any house, am i prepared to go back on the market and start over, am i prepared to start my daughter in school only to move her when and if we find something else and are in a proceedable position again. I do accept I'd be a bit sad leaving our first home wherever we go and there are always things to worry about. I suppose I know it would never be aesthetically exactly as we would want it and the cellar issue would never totally disappear. Is it worth taking a punt and move of we don't like it but the cost of moving is practically 20k.

Sorry I'm going on and on round in circles.

Oh and I don't believe the neighbours have cellars or any flooding issues. I am under the impression it is a very unlikely and unlucky issue localised to that house alone because of the spring/ water table etc

Wow it sounds like a really hard decision - I totally get it. Can we have a look at the house on rightmove?

Can you find out about contents insurance beforehand?

I have to say I'd be inclined to leave it. If money is stretched it makes any kind of renovating hard. I'd rather a beautiful smaller house (can you get a detached 3 bed with possibility to extend?)

What's the area like?