Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

Original poster

Would you buy a house with legal dispute?

31 replies

MumofTwins234 · 23/07/2023 13:21

I'd love some advice from sensible people!

Partner and I each own our own homes, we aren't married but live together between each of our houses. I have a decent job, and a small mortgage on my house with a fair bit of equity. I've always seen this house as a stepping stone - it's tiny, and I'd like something a little bigger in the same town where I already live. But I'm comfortable, happy in my little place, and I enjoy the comfort of knowing my mortgage is small and on a very low fixed rate for the next 4 years.

A house that I've always dreamt of living in that has recently come on the market. However it is riddled with problems. It was virtually derelict, and was sold 3 years ago. They renovated it, but had engaged in a legal dispute with the neighbouring landowners (who I know), damaging some of their land by installing a septic tank and shifting the boundary and building a parking area on their land. I am aware that they have settled the legal dispute and the property owner owes tens of thousands in legal fees, and has been ordered to reinstate the boundary and repair the damage - but has not yet done so.

They have put the house up for auction twice, and it has failed to sell both times. I suspect the legal issues have put buyers off. It is now for sale again, for £45k more than the previous auction guide price just a month ago - but not auction this time, it's on with one of the generic estate agents (i..e not a local one).

Given the frankly bizarre behaviour that this owner has engaged in with the neighbours I wouldn't trust him to be honest with the sale, and I suspect the renovations are likely to have been botched. So it is likely to need some work, and whoever buys it will presumably take on the obligation to reinstate the boundary and repair any damage incurred.

Do I risk my safe, comfortable but too small house for this dream house, which could be fabulous but will almost certainly involve a lot of hassle? I can't afford the current asking price, but I'm wondering whether a cheeky offer is worth it, given that I will have to pay to put the boundary issues right. Part of me thinks - if I don't try, and take some risks, I'll never get to own a house like that. And someone else will get to live there when I want it to be me!

OP posts:
GiddyGladys · 23/07/2023 13:22

No way Jose

slowsundays · 23/07/2023 13:23

Not a chance in hell.

rubyslippers · 23/07/2023 13:23

Absolutely not! Sounds like an utter nightmare and a very costly one

Original poster
MumofTwins234 · 23/07/2023 13:25

Yeah it probably would be a nightmare - I'm wondering whether at some point he'll be forced to sell to cover his legal costs. In which case, would the court seize the property and sell it off cheap? I've no idea how these things work.

OP posts:
Tallisimo · 23/07/2023 13:26

Nope. Too many risks and very few benefits.

cupofdecaf · 23/07/2023 13:26

I'd consider it given you know the other side. Assuming you get on well with them set out in advance what needs to be done or ideally have the sale only on the basis it's sorted first (fence up and neighbours happy).

Horriblewoman · 23/07/2023 13:27

If you can’t afford the asking price how will you afford to do the extensive work it sounds like it needs?

noglow · 23/07/2023 13:27

Not unless you can substantially reduce the piece price

NotBotheredAnymore · 23/07/2023 13:31

the property owner owes tens of thousands in legal fees, and has been ordered to reinstate the boundary and repair the damage - but has not yet done so.

There's your answer. It's not been done.

If you buy it then it will be down to you to pay to do it and go to court to get your money back from them. You will be bankrupt before that happens.

Original poster
MumofTwins234 · 23/07/2023 13:33

cupofdecaf · 23/07/2023 13:26

I'd consider it given you know the other side. Assuming you get on well with them set out in advance what needs to be done or ideally have the sale only on the basis it's sorted first (fence up and neighbours happy).

Yes I know the other side - I would discuss with them what needs to be done, and what it would cost - and reduce my offer to the vendor accordingly to cover that cost.

OP posts:
Original poster
MumofTwins234 · 23/07/2023 13:35

noglow · 23/07/2023 13:27

Not unless you can substantially reduce the piece price

I think the asking price is ridiculously high - especially given they put it on for auction for £45k less just a month ago, and failed to sell. So yes, I wouldn't offer anywhere near the asking price.

He may of course be holding out for someone stupid enough to pay the asking price, who is unaware of the legal dispute.

OP posts:
Original poster
MumofTwins234 · 23/07/2023 13:36

The risks are obviously complex and very real. The benefits are a lovely house that would usually be out of my price range, in a dream location.

OP posts:
ohsobroody · 23/07/2023 13:49

I woukd but Im a property solicitor so feel confident resolving the issues. Also a dab hand at renovation having renovated two properties. I would expect a knock down price though

Original poster
MumofTwins234 · 23/07/2023 13:53

ohsobroody · 23/07/2023 13:49

I woukd but Im a property solicitor so feel confident resolving the issues. Also a dab hand at renovation having renovated two properties. I would expect a knock down price though

I would definitely talk to a solicitor if I do decide to make an offer - can you tell me what would happen if he just sold it without resolving the issues. Could I come to an agreement with the neighbour, and knock down my offer price accordingly?

I know that the neighbours are keen to see him gone, and to just put things back to how they were. Which I would be happy to do if the price was right.

OP posts:
C4tastrophe · 23/07/2023 13:56

Why on earth would you buy this problem off someone, and make it your own?

ohsobroody · 23/07/2023 13:58

It's hard to say without more detail but most issues the problem 'runs with the land' so essentially if he manages to sell to someone then he can walk away Scot free.

The problem is then inherited by the new owner. I would imagine any buyer would be made aware by their solicitor and then be buying knowing this (again, depends what it is and how sneaky he is).

If it's just a case of a moved boundary and you agree the relocation with the neighbours you might get away with just leaving it at that. It might need land registry Involvement

Original poster
MumofTwins234 · 23/07/2023 14:19

ohsobroody · 23/07/2023 13:58

It's hard to say without more detail but most issues the problem 'runs with the land' so essentially if he manages to sell to someone then he can walk away Scot free.

The problem is then inherited by the new owner. I would imagine any buyer would be made aware by their solicitor and then be buying knowing this (again, depends what it is and how sneaky he is).

If it's just a case of a moved boundary and you agree the relocation with the neighbours you might get away with just leaving it at that. It might need land registry Involvement

Yes that's what I had anticipated - he'll try and sell before doing the work, so the new buyer would have to do it. That's ok if the work is achievable, and I would adjust the offer price accordingly.

He may well try and be sneaky about the detail - I'm told that the legal pack that accompanied his failed attempt at auction had very little detail in it. So someone could buy it and have a shock. But I know the neighbours so I would talk to their solicitor and make sure it's completely clear what is expected.

I'm not entirely clear on the detail of the damage, I think the moved boundary and some damage to a watercourse was mentioned, but I don't know. I'm more concerned with the septic tank issue, so would want to be clear on that.

OP posts:
ohsobroody · 23/07/2023 14:27

If there's issues with a watercourse it might e worth investigating with local planning authority and environmental agencies too

dottiedodah · 23/07/2023 14:39

I think the phrase is something like "Bargepole dont touch with!" Really I think this would be a heap of trouble for you. These sorts of disputes can go on for years and be very unpleasant

2bazookas · 23/07/2023 14:42

NO.

Find a stick and start carving yourself a very long bargepole.

Rainbowshine · 23/07/2023 14:48

There are other much more straightforward properties that you can buy that don’t have all that uncertainty and baggage. You would be a fool to take this property on, there are too many unknowns and what you do know about already is ££££ and this has full potential to be a very deep money pit.

TheModHatter · 23/07/2023 14:56

Yes IF I knew exactly what needs to be done, and how much it costs, with contingency.

I would rather rectify things like the septic tank myself so that I knew it was sound, and held the warranty, etc.

Also a really thorough survey over the whole house, with costs associated to work, and add 30%.

schloss · 23/07/2023 15:01

You have 2 huge advantages here compared to other prospective purchasers:

You know the neighbours and I would pretty much guarantee the neighbours would prefer someone else to live next door to them, especially someone they know.

This information puts you in a strong position to proceed with a sale, subject to it being a financially viable purchase. It is in the neighbours interests to regain their boundary however if a purchase does not proceed, it seems unlikely the current owner will both resinstate the boundary and pay the costs required to do it and pay the neighbours.

You can use all of this to your advantage to negotiate a good price to purchase the property. Any drop in price for the property should inlude allowing you to pay for extremely strong legal representation. Hopefully the neighbours, and their solicitors, will be willing to show you all the documentation for the disputes. You can use this information to find an acceptable resolution for them if you purchase - if you are lucky, the prospect of you living next door and their boundary being reinstated may be enough for them. Any legal dispute is then closed, put in place prior to purchase a binding agreement between you and the neighbours as to what will be done upon completion.

If it is your dream home (or will be) in a dream location and this situation allows you to purchase it I would say go into it with your eyes wide open but be prepared to walk away if the legal situation or outstanding issues are too much. Rather best to try and it not happen then to forever think what if.

primoseyellow · 23/07/2023 15:06

Yes I would as long as it was for the right price. Factor in reinstating the boundary line etc and make sure that you have no responsibility regarding the legal cost and compensation due to the neighbours .

schloss · 23/07/2023 15:10

I forgot to add, the rules for septic tanks changed a couple of years ago when houses sell, so I would cost installing a new tank such as a Klargester and associated plumbing, closing off the septic tank and therefore (hopefully) another one of the legal disputes. I wonder if the watercourse issue is discharge into it, which could be tied in with waste discharge.

Take each issue individually and how it can be solved, most things can be sorted out especially if you are going to help the neighbours rather than annoy them which is currently happened.

Swipe left for the next trending thread