Would you buy a house with legal dispute?

[MumofTwins234]

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!

With full information of restitution works required .. assume estimate / quotes +50%. Assume that existing renovations may not have paperwork / sign off. Put your best offer forward with justification of price and refuse to negotiate. Get all the information you can from the neighbours.

The legal dispute per se wouldn't put me off, as it sounds as if the fault was entirely with the property owner, and not the neighbour, and that it is now settled, subject to the amendments being made.

I'd be much more put off by the potential of botched renovations. If the current owner was prepared to flaunt the rules to the extent of unlawfully moving a boundary, GOK what he will have done inside the house.

You need a really thorough survey, and you need details of everything that has been done. You also need a structural engineer to review the house. All this will cost upwards of £5k. One approach would be to ask the current owner to split the cost.

I would consider buying, as it's your dream home, but the price would have to reflect all the downsides.

Failed to sell at auction meant either no-one wanted to touch it, or it failed to reach the reserve price, which is probably what it is on for now.
I can’t see him giving a substantial reduction if he owes 10s of thousands in costs, and has to buy somewhere else.
Too many red flags for most people.

I think your conveyancing solicitor (if you buy it) would have several months of work, and their enquiries on the property would reveal even more negative aspects- or even that with the various court orders/charges on the property, it is in fact impossible to buy it!

So you both have your own homes and are happy with the arrangement, living together most of them time?

I think living together full time when neither has another home to disappear off to is an entirely different headspace to be in.

Cementing your relationship, in a new, far more expensive house that's in the middle of a legal dispute AND needs extensive refurbishment sounds like a way to test a relationship beyond its limits.

I don't think it's a good way to start with your first joint home.

There will be another dream home out there, you just have to have patience.

Now way....