Reducing offer last minute AIBU

[Potatomashed]

Would welcome any thoughts on this.

TLDR; Prev full asking price offer. Issues now identified. Mortgage lender iffy, seller keen to complete. 80% cash offer (All our money) rejected. Not willing to negotiate on price now. AIBU to not buy at full price?

We are buying a property which needs quite extensive work (not structural but new windows, doors, kitchen, bathrooms, rewire etc). We didn’t get a survey due to the renovation required already and no visual signs of movement or repair to anything.

We were hoping to complete before Christmas (offered mid October, paid priority fee with solicitor as requested by seller) my but last week the solicitor discovered in the conveyancing process that the loft room ( approx 20 years old conversion, velux windows, finished walls, accessed with space saving step stairs, sold with photos of bed and desk in) doesn’t have building regs sign off. Neither does the retrofitted brick chimney breast and log burner. Also just found out that the oil tank and it’s base need replacing for c£2k.

The high street mortgage lender is umming and aching if it is willing to lend on the property and holding everything up.

We offered 80% of the asking price as cash to go through asap but this was rejected. Seller saying they aren’t willing to negotiate at all.
we don’t feel that we are offering on the same property we viewed, it has risk re structure, council coming after us to bring up to regs, party walls etc. We will have building regs round for the work that we are doing so they may well ask us to bring it up to scratch.

Estate agent keeps muttering about indemnity policies but this is invalidated as soon as we do work to the house anyway so offers little protection. Obviously the next step is a survey but there seems little point if the seller won’t negotiate…

Do we buy the house?

Exactly!

it’s been there 20years, nobody cares any more.

just check it’s safe, with decent support, insulation and fire protection/safe exit.

To be classed as a room it needs to have isolation with fire doors and an moe window , which means "method of escape", that the fire brigade can rescue people form if there's a fire. Otherwise it's just loft storage. Stick by your offer.

Was it advertised with the loft room as a bedroom ( ie. 4 bed including the loft) and you are paying 4 bed price, I would reduce price.
Without the proper sign off you are just buying someone else’s problems.
Space save stairs? What are they and what are the fire regs Around them?

If I was in your situation and the vendors are not willing to budge then I would pull out of the sale altogether. It is their fault for not getting building regs signed off when they had the work done. Many people think they can get away with this but when it comes to selling the property they will have difficulty selling it. We purchased a rental property back in 2010 that needed extensive work doing to it, we demolished the outbuildings and had extension built - can have somewhat hold up to the process but it’s vital it is done.

Space saver stairs are compliant with building regs in certain circumstances.

www.tkstairs.com/blog/space-saving-paddle-stairs-guide

Thx

Haven’t read the full thread so apologies if this has been mentioned. But we tried to buy a house this year with a two storey extension that didn’t have any building regs (or planning permission) . The legal advice we received was that there is no time limit on the local authority's right to apply for an injunction. It is probably unlikely they would, but technically there is no time limit. We pulled out of the purchase as the extension was half of the house and included a bedroom. Our lender wasn’t keen on it either, there was mention of an indemnity policy but it’s basically of little use.

As far as I am aware, for lack of building regs the only circumstances in which a local authority have indefinite period of time to apply for an injunction is when the council believes the work is dangerous or unsafe for occupation. Such instances are extremely rare.

For planning there is a 4 year rule, and a 10 year rule, depending on exactly what has occurred without the appropriate consent.

It sounds like you had some particularly cautious legal advisors.

Thanks everyone for taking the time to reply to me- I’ve not had the headspace to reply to everyone due to sick child, stressful job and impending move but I really appreciate the varied responses.

We are no further with the purchase, the lender hasn’t decided if they are willing to lend on the property and it’s almost certain the Christmas deadline the seller had pushed for won’t happen unless they decide they will accept cash after all…

Putting ALL your money into property at the moment would be a very bad mistake to make, you will regret doing this in future, pull out and wait for property to get cheaper.