Open retention and unknown costs on Repo – Should I complete today?

Open retention and unknown costs on Repo – Should I complete today?

10:06 AM, 5th January 2017, About 7 years ago 13

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We are buying a repossessed freehold property with shared common areas, car park spaces and gardens.fear

The management company have asked for a retention of the purchase price, but they would not specify how much or what for, they also served notice of major works on the complex which contains leasehold flats and freehold houses, but they would not tell us what our share of the cost would be.

The sellers solicitors are pressing really hard to exchange today and complete in 7 days and my solicitor would not ask them to postpone the exchange of contracts because he already asked that over Christmas when he was shut 23rd Dec to the 3rd Jan.

I am in very difficult situation of what to do, if I sign up, it means that I would be liable to any cost afterword or if don’t sign up, they might withdraw the contract and may go with some one else, and that means I lose the survey fees £600 and my solicitors fees, around £1000 and the property which I think

Would make a good HMO investment.

Any opinion or advise would be greatly appreciated.

Many thanks

Ghalib


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Comments

Colin Dartnell

20:36 PM, 7th January 2017, About 7 years ago

If you are still keen to go ahead, the management company sounds iffy, find out if they charge a fee every time you change tenants. and check there are no covenants stopping you from subletting your property all together, especially as an HMO.

Puzzler

16:45 PM, 8th January 2017, About 7 years ago

There are private developments where service charges are levied on freehold properties, e.g. round a square etc. However, it is more usual for a lender to require a retention not a management company. Is it a limited company of which the owners are shareholders? or are you talking about an agent? You should have been given all the details of charges and fees via your solicitor.

It is possible money would come out of the sale if owed by the vendor but not the purchase, this would not affect you so the amount is not your concern. That said, you are entitled to see the accounts. If you haven't seen or your solicitor hasn't any of the above then the sale cannot proceed. Regarding future work this would affect you, you are entitled to know what it is for and your share of the cost should be specified in the lease or deed document. Your solicitor should have a copy of this as standard conveyancing practice. You should ask them to go through it with you, only they can answer your questions.

Colin Dartnell

18:30 PM, 8th January 2017, About 7 years ago

Reply to the comment left by "Dylan Morris" at "05/01/2017 - 12:06":

Agreed. The fees seem high. I recently had a failed purchase on a £400k house, seller pulled out on day of exchange, my solicitor only charged £630 plus vat and he had virtually done all the work. Also thought search fees were steep I have never paid more than £350 to £400 for searches.

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