Renegotiate after offer accepted because of neighbour?

[TheLondoner00]

Had an offer accepted recently. As part of the searches and due diligence, my solicitor flagged that the next door house just received planning permission to create a set of flats and do a full roof and back extension that extends past the property we are trying to buy. This will partially block the sunlight and reduce privacy because the neighbour’s top floor balcony will overlook into the property. There is no way the sellers can deny this because this is exactly what they submitted to the council as an official ‘objection’ during the consultation phase (no idea how this still got approved by the council, but here we are).

As this will significantly impact the property and my ability to sell it on in the future, can I renegotiate my offer? If so, what is a reasonable amount to put forward?

For context: the offer that was accepted was almost 10% below asking, but the property had been on for awhile (likely because it was overpriced), there were no other offers, and I think the sellers are desperate to move on

Pull out

its going to have a massive negative effect on the value of your home

Without knowing the full property and garden details, it's hard to know whether you should pull out.

I'd reduce your offer by at least another 20% stating that this is due to the block of flats.

They know it's a problem. They can't seriously expect the sale to go through without a hitch, which is why they didn't disclose it.

They could be sitting on a 1000% increase on what they originally paid for it, so perhaps they'll take the hit.

Once building work starts, they're screwed untill it finishes.

⚠️ PULL OUT PULL OUT PULL OUT ⚠️

Hey OP,

Do you know how much your house will be worth once it’s got a whopping block of flats next to it, and has lost some of its sunlight and privacy?

I’m betting the price will drop by way more than 3-5%.

You need to cover the drop in value and whack on a bit extra reduction to make up for the very significant disruption and noise during construction.

You need to get a valuation of what the house will be worth after construction and reduce your bid to below that, plus a bit extra for living next to a building site.

Honestly, I’d look elsewhere. I’d rather have a house that needs a bit of painting than lose my privacy and suffer the noise from such a big project right next door. But only you know what your limits are - just don’t feel forced into “being nice”. They weren’t nice when they lied about neighbour disputes or withheld material information. This is your future - you’re entitled to do what’s best for you.

25oercwnt would be a good starting point

I'd be tempted to walk away tbh. House prices at an all time high atm and buying a house with such a unknown variable could be massive risk. The work, the noise, mess, the traffic, the loss of light, the loss of privacy, the increase in parkes cars and more people coming and going all before you even know what the occupiers will be like. Your dream home could become a nightmare and a money sink.

I would walk away.

Well, objecting to a planning application doesn't qualify as a neighbour dispute, but I agree op shouldn't touch this one with a barge pole.

You'll never regret pulling out on this sale. Wistfully regretting not being overlooked in my own garden by a variety of strangers forevermore? Nope.

There was a reason they accepted your low offer, and now you know what it was. I would walk away. Let them have the disruption and possible reduction in the value of the property.

Not their fault, and they did try to object to the development, but they didn’t come clean about it hoping you wouldn’t find out so now they have to suck it up.

I would absolutely pull out too. If you do consider going forward with it, you need to knock another 10-20% off if as that'll be what the house is devalued by, never mind the inconvenience, disruption & dust during the build (and ongoing inconvenience of living next to a lot more people).

Initially I’d say walk away… but, this brings opportunities. Firstly an additional % off the asking price and secondly the opportunity to get pp to do the same to your property and then sell at a later date!

Will it be a nightmare to live through, yes, but it won’t be forever. The loss of privacy and light would be a big deal for me though.

I would walk away. The noise, dust and dirt, the disruption, and then your new house devalued.

It could be horrendous once they are built.

I'd be knocking at least another 20% off.

Pull out!

I know next to nothing about such things but should the sellers have declared that they had objected to the planning permission being sort for next door ?

I'd pull out, simply on the basis that they objected to the planning but hadn't been open and honest about it upfront. You've spent money on a solicitor to have to find out. What else might they be hiding?

@TheLondoner00
the biggest issue here so not what you are paying for it it’s what it will be worth once the flats are built. Your property price will be directly impacted by these flats and could massively devalue your property by more than you’d get off the purchase price.

Its a tough one but if you are buying to live in as a home I wouldn’t touch it. As an investment to perhaps convert in some way similar to next door it could be worthwhile.

Nealy all posters have said the same thing…..walk away. It will not be worth it regardless how much you love the house. The issues you will face will make you hate it. I’ve seen it happen.

I wouldn’t buy it. Do you really want to be living next to a building site for months on end? And then be potentially faced with ‘rogue’ neighbours in the flats.
Not to say it will invade your privacy.

There are forms you fill out during the conveyancing process. One of them asks if there have been any neighbour disputes. This is a neighbour dispute and it should have been on that form.

So, yes, legally they should have it on one of the forms.

I found a vendor we were buying for had lied on the form by finding their neighbours objection on their own planning application myself.

We live on a bit of a corner, and are backed on by four houses.

In the last several years, each house has in turn been renovated and done up by various building crews. The latest being the house at the back which has had an extra storey built on.

Honestly, I wouldn’t ever put myself in a position of living next to building works.

Thank you everyone, message is clear! The original planning approval was 4 years ago and they have applied for a "confirmation of planning permission" that will be decided in 2 weeks. I'm going to wait and see what the council decides before making a call on whether to pull out or renegotiate

Good plan. Hope all works out well for you.

Ok I spoke to an architect who went through the planning application in more detail. Basically they are confirming to the council that they have started work on the property by digging a trench. The architect thinks that this could be a real start on the renovations or it could be a move to preserve the validity of the planning approval from a few years ago (apparently if you are granted permission but don't start the work within a set number of years, you have to reapply for permission). In any case, I have to assume that the council will approve this 'confirmation of planning permission implementation'.

I've thought long and hard and I think I'd be ok with going ahead with the house purchase as long as there was a reduction in price.

Question is: should I ask for the reduction in price now or should I wait until I do a survey so that I can make the request 'in one go' in case there are any issues flagged in the survey?

The thing is, I wouldn't want to spend money on a RICS survey (estimated at £2k) if the sellers aren't going to consider any reduction in price at all. But.. if I ask now before the survey, I could see how the sellers would be wary of saying yes to a reduction in price now and then having to potentially deal with another reduction request after the survey. What do you think is better?

Don’t buy it. The developers will probably buy it to have another go when they have finished next door.

Personally I think you are totally crazy to go ahead but it's your choice.

I would negotiate now rather than waste more time and money. A 25% reduction would seem reasonable. It will devalue the property very significantly and affect the area and your quality of life, not to speak of the major disruption.