What happens now we are pulling out of sale?

[flushing]

We are first time buyers. We offered on an ole terrace built in 1890 and everything has been going fine (mortgage in place, all funds checks etc, searches fine) until we received the level 2 survey last week.

The seller disclosed around this time that there were no building regulation sign off for removal of an internal wall, installation of a log burner, gas and electricity checks but the survey also revealed the double extension has no building regs, it’s a single skin wall, there’s damp all over the place, upstairs and down.

It’s just too much for us to take on so we’ve decided to walk away.

We know we’ve incurred some solicitor fees for searches etc and the cost of the survey.

Are there any other implications to pulling out now? If we find another property of the same price is it easy for the mortgage company to revalue the next property and we can move on quickly?

As it’s a bank holiday we can’t contact anyone until tomorrow to tell them we are pulling out and I’m worrying that it’s going to be difficult to move to something else.

None whatsoever

Drop EA an email today. Given survey and confirmation no building reg sign off in place - we are withdrawing our offer

Nothing other than the costs you’ve already mentioned. I’m a former EA.

No and it happens all the time - sorry, it must be disappointing. How idiotic of the sellers!

No, only what you have mentioned.

Just drop the Solicitors and Estate Agents an email.

There will be something better out there for you.

Nothing just tell them your withdrawing as the seller didn’t disclose what the survey found.

there is no downside in walking away, you're doing the right thing.

you won't feasibly be able to claim back your survey and any conveyance work done so far, but it will be well worth you having a conversation with their EA to highlight how late in the day you found out able the lack of planning permission.

That should have been disclosed when their EA took the instruction from the vendor. Their questionnaire should ask "have you done any alterations/have any alterations been done on your property and are they covered by planning permission and approval documentation?"

your mortgage lender will have given you an offer in principle which is possible to port to a different property.

You may also have incurred some Solicitor costs for their time, in addition to search costs.

i had a sale & purchase fail a few years ago because both my buyers and vendor pulled out. We were only a week in legally but I still picked up £800 in costs for legal time.

Needless to say I was furious as neither situation was my fault. Vendor had lied about their onward purchase and then decided not to sell and my buyer had found a better deal elsewhere.

My Solicitor of 15 years had no sympathy, landed me with a ridiculous bill and is now my Solicitor no more.

I’d slow your roll before immediately pulling out. Do you have any experience in period properties?

Firstly with a level 2 survey of any period property you are likely to get a surveyor viewing any issues through a pretty lazy lens. They most often do not know anything about damp nor do they how to correctly diagnose damp. I’m betting they used a protimeter (or similar brand) damp meter – because they all do. These are not for detecting damp in masonry. They are intended for timber only. Unfortunately they have made their way into surveying and into the hands of surveyors not trained in period buildings.

A quick google research will tell you all of this.

Damp, if it’s actually there, will almost always be an inexpensive fix because it’s usually penetrative.

Additionally, it’s very common for period properties to have had past building work without building regs. Do you know the age/date of the extension or the wall removal?

The renovation works were carried out in 2015, not by the seller - by the people before them.

The seller has had the property 3 years as a rental. He selling it for more or less the sum he paid for it so it’s clear he’s getting it off his hands as there’s issues with damp. The surveyor picked up a lot of issues that we hadn’t noticed like broken glazing, swollen worktops in he kitchen (attributed to condensation).

The single skin walled extension (poorly built was mentioned in the report) is just too much on top of other problems - we haven’t got an endless pot of money to throw at a house that we know is a short term place for us. We don’t want someone else’s problem and have the same issues trying to sell when we move out.

We have just pulled out of our offer on a house, due to an unsatisfactory survey, and are currently waiting for the survey to be done on a second house. We simply told the estate agent we weren’t willing to proceed. We had told our solicitor to hold off starting the process until we had had the survey report, so we hadn’t incurred any costs there. We did get a couple of emails from the estate agents asking to see the survey, but we refused - you don’t have to tell them what was wrong if you don’t want to, and the surveyors generally ask that you don’t share the report.

@daisychain01’s comment that the problem should have been revealed on the estate agent’s form is true, but we are currently also helping my elderly brother sell his rather run down house, and the agent told him it was perfectly all right to put ‘don’t know’ on the form.

Of course you can withdraw from the purchase, without financial penalty, although the money you have spent so far won’t be recoverable.

I would say if you are looking at character property of that kind of age, they will all have damp, so if this concerns you then perhaps consider a newer build.

Is there an indemnity policy on the property for the lack of sign off?

I hope you find a new property that you like very soon.

I'm in the building trade, you are doing the right thing - on an older property you will always find something not right, or often some less critical paperwork missing, but two major structural parts with no paperwork and issues presenting themselves (ie the damp) points to things being done incorrectly and major costs for you to put right.

I deal with building inspectors every week, they know me, I know them, their visits are just part of my life, I don't loose sleep over it, My point being anyone who never had them round was probably cutting corners, because if they were doing it right there is no drama.

You have done the right thing - there is no other costs you will incur and no one can chase you for anything - up until exchange of contracts that is always the case.

Good luck, hope you find something better.

Definitely doing the right thing!

I’d slow your roll before immediately pulling out. Do you have any experience in period properties

I do and I wouldn’t touch this…

It’s a shame isn’t it, we had to pull out once a survey came on a house as it had major structural issues. Turned out subsidence was common in the area due to old mine works. Liked the house a lot and we had spent about 2k.

I won’t buy a house with a cellar, too many issues. Our house was built in 1928. DS Uncle is a surveyor and said 1920’s houses very well built but sometimes issues with drains. We did indeed have an issue with drains though easily rectified. All those new builds springing up? They will not be around in 136 years.

I had to pull out of a purchase a few years ago and the mortgage company held my fee/application for a set number of months for a new property.

I agree with pp that damp will always be present in older properties but the scale of problems in this one seem beyond that.

I'm really sorry you had that experience. Buying houses is such a rollercoaster! Can I ask why you didn't want to share the issues with the agent?

Yes, indemnity policies were mentioned but they wont cover for poor workmanship or a house that gives us endless problems with damp on our belongings etc.

What everyone else said
you’re doing the right thing it sounds like, especially with the damp

I will however say that having bought 2 pretty old properties, having lots of things come up on a survey is common so be prepared for that next time. Most of them can be minor/non-issues
they built them far better in 1910 than they do now!

be very factual with the agent and email them asap because your dream house might be listed tomorrow with them and you want them onside. Which they will be if you explain your reasoning.

@DontyMon Because the surveyor asked us not to, and they are giving us a discount on our second survey with them.

My daughter and boyfriend were buying a house with a single skinned double extension and also withdrew. They paid a structural engineer and he told them the extension was so wet the whole kitchen was affected, MDF full of water. Good luck.

Bit sketchy of the surveyor considering you’d paid him for the information that was yours to use as you saw fit

When you buy next time
look into getting home buyers insurance

it may not cover you for pulling out
but sometimes it can cover cost due to negative survey

and definitely get it if your in a chain because as you now know people can pull out for any reason and you don’t want to have paid out £££££ and be on the hook for that due to other people circumstances

Cost around 100 -130 depending on the level you buy

Means surveyor gets to keep charging people over and over again for report on same house?

Indeed but he no right to request the buyer of his surveyor didn’t elaborate as to why pulling out. And that’s sketchy to me