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Original poster

Should we just pull out?

34 replies

monpetitlapin · 02/10/2023 17:24

God I feel awful even considering it.

The flat we offered on has come back as unmortgageable with the only lender that will lend us enough to actually buy the property. We can potentially try other lenders but none of them will lend us the full amount based on what the advisor (whole of market) showed us before we decided to go ahead with this one.

The property is apparently unmortgageable because the communal parts of the block of flats haven't been maintained very well. I did notice some of this but didn't realise how bad it was. There is a lot of wear and tear to other parts of the building and the parking area is in a very bad state as well, and none of it seems to be managed by the management company. There are also quite a few tiles missing from the roof which I didn't see until I went back today and scrutinised it all. The exterior is shabby.

This seems to me to be a compelling reason to pull out as I don't want to deal with huge maintenance bills if the management company ever sort these issues, or with the disruption caused by the problems that could arise from these issues. We only ever planned to have this property for 2-3 years at most, as a stepping stone to move to somewhere better for our very young children. This one doesn't have enough bedrooms for long term, or a garden.

We are currently renting. Our rental cost is the same as the mortgage would be, but we are getting a 2 bedroom semi with a garden, garage and drive in the same town, and while it's money down a hole, it's a nice hole to be stuck in. The flat is also 2 bed and has bigger bedrooms than the house we rent though.

Also relevant is I'm on the up in my career, close to moving into management, and my salary in 2-3 years time might well be double what I'm on right now.

I feel like we'd be better staying where we are for a bit longer rather than trying to find any one mortgage offer that won't even cover the full amount we need, then trying to renegotiate the sale price (which also seems shitty to the seller).

If we go ahead, I'm worried that we're going to get stuck in a 2 bed flat with a boy and a girl if it's hard for us to sell it, because our potential buyer wouldn't necessarily get a mortgage either. But if we pull out we're going to have to either buy another flat somewhere nearby or move out of area completely to another town.

WWYD?

OP posts:
YewTree84 · 02/10/2023 17:28

I'd pull out for sure.

I think you're right in that you don't want to be lumbered with the cost of vast maintenance and if banks are steering clear, it's with very good reason.

If that place is all you can afford right now, I'd be inclined to wait it out to see what your salary is like as you move on in your career. They also speak of a housing crash looming so renting is probably a good place to be if that materialises. You could get yourself a better deal in the future.

Good luck 🤞

LeafLife · 02/10/2023 17:33

I would pull out.
You would be setting yourself up for being trapped there if you carry on with the purchase. Most people would not buy a property that can’t be mortgaged and that status is unlikely to change in 2 - 3 years when you want to sell if it’s down to the communal areas.

Summer2424 · 02/10/2023 17:39

Hi @monpetitlapin
I would pull out. It may take time to sell the flat when you want to move on. All the best in your decision.

OhhhhhhhhBiscuits · 02/10/2023 17:40

Pull out!

A leasehold with the freeholder not doing any maintenance is a bad sign. And if you are having trouble getting a mortgage then your buyers when you sell probably will as well as it will have deteoriated in 2-3 years to a worse state.

vixencomet · 02/10/2023 17:48

Trust your gut. The upheaval for just 2-3 years in there with all the problems/costs that come with it and potential to have problems selling it on is practically not worth it. There will be other properties if you are set on buying but even short term it has to be right for you. I would definitely pull out and have done 2x in the past due to similar reasons to what you've stated.

Callisto1 · 02/10/2023 18:02

This flat sounds like a bad idea, given all the issues it has. Also if it's only for 2-3 years you have to factor in costs of moving and selling, and the fact that house prices look wobbly at the moment. House value could easily fall 5-10% in the next year or so.

OhhhhhhhhBiscuits · 02/10/2023 18:04

I should have also added to my post, if a lot of maintenance is required you could be stung for massive service charges to get the building up together again. You will take over the liability as the leaseholder if you purchase and if its so bad its unmortgageable then that will be thousands and thousands of pounds.

OnlyFoolsnMothers · 02/10/2023 18:06

Pull out! No way would I want that hassle and then that bill.

Original poster
monpetitlapin · 02/10/2023 18:09

I feel really guilty, the flat was on the market 18 months ago and they took it off to improve before remarketing this year. I really don't want to let them down when they finally think they're moving.

OP posts:
SMabbutt · 02/10/2023 18:09

Definitely pull out. You could let them know that your mortgage adviser has said it is unmortgagable with your lender and other lenders won't lend enough due to the poor state of communal areas and lack of maintenance. The current owner is going to find it tough to sell with these issues.

Totaly · 02/10/2023 18:09

Flats are difficult to sell especially if people are forced to sell and there are 5 flats in the same block wanting sellers.

This reduces the cost. Plus if you end up in negative equity you’ll be stuck.

In your shoes I’d wait it out and reassess next year and save save save

usertaken · 02/10/2023 18:16

Sorry, but the property is unmortgageable, so I can't see how guilt tripping yourself over it comes into it.

If it was the other way around, the unmortgageable flat was yours and you had a bidder that was gonna buy it so your feelings did not get hurt you would just see them as nothing more than a massive doormat.

It's a business transaction at the end of the day, of course its unfortunate for the seller, but not your problem.

TheNoodlesIncident · 02/10/2023 19:04

monpetitlapin · 02/10/2023 18:09

I feel really guilty, the flat was on the market 18 months ago and they took it off to improve before remarketing this year. I really don't want to let them down when they finally think they're moving.

You're not pulling out on a whim though, those are very serious issues and if no bank will lend on that property, it's really unfortunate for the sellers but not your problem.

You're far better off sitting tight for a couple of years, if you don't see another property that will work for you in the meantime.

Dizzydeers · 02/10/2023 19:10

Pull out.

You only want it for a couple of years, any future buyers will face the same issues you are. It will be really hard to sell.

NewFriendlyLadybird · 02/10/2023 19:30

Pull out. It’s awful for the vendors, but you’re not being flaky. Being unable to get a suitable mortgage is reason enough.

ConnieCooper · 02/10/2023 20:00

Pull out. Anything else is financial suicide

MidnightOnceMore · 02/10/2023 20:02

monpetitlapin · 02/10/2023 18:09

I feel really guilty, the flat was on the market 18 months ago and they took it off to improve before remarketing this year. I really don't want to let them down when they finally think they're moving.

You're not letting them down, the mortgage company has said they won't mortgage.

This attitude is really unhealthy! You are allowed to put your own family first in a legal and polite way.

sunshinesupermum · 02/10/2023 20:04

Pull out. No need to feel guilty. The flat is unmortgageable.

androidnotapple · 02/10/2023 20:04

Your structural survey should have picked that up, what did it say?

CrashyTime · 02/10/2023 20:07

ConnieCooper · 02/10/2023 20:00

Pull out. Anything else is financial suicide

Good advice.

MoiraRosesBaybay · 02/10/2023 20:12

monpetitlapin · 02/10/2023 18:09

I feel really guilty, the flat was on the market 18 months ago and they took it off to improve before remarketing this year. I really don't want to let them down when they finally think they're moving.

I understand that, but they aren’t your problem

maisouimaisoui1 · 02/10/2023 20:17

Oh god, run. A friend of mine has been trapped for years due to flat maintenance issues. About five years now - it's awful.

Original poster
monpetitlapin · 02/10/2023 20:28

androidnotapple · 02/10/2023 20:04

Your structural survey should have picked that up, what did it say?

We hadn't got that far. Conveyancers had only just started on the searches, the bank was apparently really fast at doing their valuation.

OP posts:
Original poster
monpetitlapin · 02/10/2023 20:36

Thank you everyone, you're making me feel a lot better about this.

The EA is urging us to get a different mortgage which makes me feel like we haven't tried hard enough, but I don't really want to own a flat that's going to be unsellable and I know they have a vested interest in it going through so they make their money.

OP posts:
redastherose · 02/10/2023 20:53

Conveyancer here, don't buy a flat in a badly maintained building. The management company is most likely not being run properly, there should be a sinking fund being built up to provide a cushion so that lots of expensive works don't fall all on the owners at once. When the building isn't being maintained it's often because lots of the owners are non resident landlords who don't care as much about what it looks like or doing necessary repairs rather than maximising profits by paying a low service charge which doesn't cover the costs of ongoing maintenance and repairs. You don't owe the current owners anything, this is a business decision.

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