Survey shows non compliant extension

CBFi

Need some advice. Had survey done today on a "3" bed that we are sale agreed on and there is about 9k (ex vat) of work needed in repairs. That I would have dealt with as it's old and will always need something done to it.

BUT it turns out the extension is non compliant! The floor to ceiling height is 70mm short. The windows in the bedrooms are also not fire compliant. expected in main part of the house as it's old but not in the extension!

The surveyor who is an engineer and architecture tech advised me that fixing the extension would cost the guts of 10k and you wouldn't really know what you're up against until you get into the attic.

Should we just walk away? We're First Time Buyers so we've the mortgage/ bank to consider too. We're talking almost 20k in work needed. There's hardly any chance that they will drop this off the asking price?

All thoughts/ advice/ insight welcome!

superleedsdub

I personally wouldn`t purchase this house under these circumstances. I know friends that were in similar circumstances and they managed to negotiate a decrease in the purchase price to reflect substantial repairs that they needed to complete (in their case, rectifying damp in some rooms). The seller in that situation agreed as apparently a number of would be buyers were put off by the work that was required and he couldn`t sell the property (which is now repaired and is a fantastic House).

I would present the survey to the estate agents and request a drop in the asking price, the sellers will either agree, try to negotiate or pull out altogether and take a chance that someone else will buy the house in it`s current condition.

Put it this way - would you like to spend €20,000 on top of your mortgage?

sKeith

Have your solicitor share the report with the estate agent, who will provide it to the vendor. You can ask them to bring the house up to code or accept reduced a offer (dialog will ensue). Just be glad you got that survey done.

CBFi

Thanks superleedsdub. Yeah we wouldnt be able to afford to fix the extension anytime soon. If we were ever to try and sell we'd find ourselves forced to do the repairs.

Any know how bank will react?

ted1

If you buy the house, would you bother bringing it up to code?
Plenty wouldn't, if I was selling and you started looking for a lower price I would stick it back on the market.

MicktheMan

Leaving aside the cost to put it right for a moment but will you get a mortgage on a non-compliant house?

superleedsdub

MicktheMan wrote: »

Leaving aside the cost to put it right for a moment but will you get a mortgage on a non-compliant house?

I was thinking something similar myself, I was looking into getting an extension on my home this year and a couple of builders mentioned that if it wasn`t certified then we may have issues in selling the house down the line.....

MicktheMan

CBFi wrote: »

Should we just walk away?

Imo, yes. If the extension is non-compliant in such simple and clearly visible terms, I would be quite concerned about what you can't see!

CBFi

Thanks for the replies everyone.

You're asking all the questions that we're asking ourselves.

We will have to talk to the bank re mortgage. We have no idea! Maybe, if we're paying less and, therefore, paying what it's worth as a two bed?

If we bought the house, we prob wouldnt bring it up to code TBH unless we decide to sell it in a few years. Although that's not the plan but sure you never know how life changes.

Either:
we buy for less than the sale agreed price
or
we get them to bring it up to code and we buy for sale agreed price.

Otherwise they put it back on the market but they're not going to get the sale agreed price they have with us for what is now a 2 bed house with exceptional storage!

Do they, and estate agent, have to tell potential buyers about these regulation issues if they do put it back on the market?

ted1

MicktheMan wrote: »

Leaving aside the cost to put it right for a moment but will you get a mortgage on a non-compliant house?

Genreally yes, because the bank don't do a survey. They just look For a valuation and most valuers don't look at issues like that.

MouseTail

Not compliant with current regs, or not compliant at the time of build? Is there not a Certificate of compliance for the extension or was it exempt from planning?

MicktheMan

ted1 wrote: »

They just look For a valuation and most valuers don't look at issues like that.

Correct, but they (the bank) will look for a certificate of compliance...

CBFi

Apparently they have all the certificates! How? I don't know.

Valuer apparently took measurements but I havent seen that report yet.

Extension would have been built after these building regs were introduced.

handlemaster

Ask for works of 10k to be taken off agreed price or decline to buy.

MicktheMan

CBFi wrote: »

Apparently they have all the certificates!

Yes but are there qualifications / observations on the certs which the bank will pick up on?
As I alluded to earlier, even if the bank accepts the certs are you willing to take the risk that the extension doesn't have other hidden issues?
If it was me, I'd either pay a professional (with good PI insurance) to go through the house with a fine toothcomb or walk away.

JimsAlterEgo

Could be the case it was compliant at the time and isnt to new regulations

cpoh1

As other posters have suggested the engineer who surveyed the house could be referring to the latest building regs and not the ones that applied at the time of the design and construction start (different to when completed).

It is not unusual to have to do work on a house when you buy, especially if it is over 25 years old. An engineers report will always find 5-10k of fix in an ideal world works in a report that you would naturally end up doing in the long term anyway.

I would be focused purely on the extension and whether it is compliant because you are not going to fix it. Raising a roof height is just not going to happen in the real world.

If it is in fact compliant with the existing regs at the time then great but if not you then you have to decide if you want to buy it as is or walk away.

Looking for a reduction is not the issue really because money wont really fix the lack of compliance, not 10k anyway.

JimsAlterEgo

cpoh1 wrote: »

As other posters have suggested the engineer who surveyed the house could be referring to the latest building regs and not the ones that applied at the time of the design and construction start (different to when completed).

It is not unusual to have to do work on a house when you buy, especially if it is over 25 years old. An engineers report will always find 5-10k of fix in an ideal world works in a report that you would naturally end up doing in the long term anyway.

I would be focused purely on the extension and whether it is compliant because you are not going to fix it. Raising a roof height is just not going to happen in the real world.

If it is in fact compliant with the existing regs at the time then great but if not you then you have to decide if you want to buy it as is or walk away.

Looking for a reduction is not the issue really because money wont really fix the lack of compliance, not 10k anyway.

And if actually not compliant a bank wont mortgage it as solicitor wont certify proper title!

CBFi

cpoh1 wrote: »

I would be focused purely on the extension and whether it is compliant because you are not going to fix it. Raising a roof height is just not going to happen in the real world.

If it is in fact compliant with the existing regs at the time then great but if not you then you have to decide if you want to buy it as is or walk away.

Looking for a reduction is not the issue really because money wont really fix the lack of compliance, not 10k anyway.

I think this is the crux of the issue. Can we get over this and reconcile it with the value we have placed on the house...

Banks can and do lend in these situations but it's not easy and it's at their discretion.

Thanks for all your advice.

cpoh1

CBFi wrote: »

I think this is the crux of the issue. Can we get over this and reconcile it with the value we have placed on the house...

Banks can and do lend in these situations but it's not easy and it's at their discretion.

Thanks for all your advice.

Would you plan on living in the house as a long term home? If you are and get a small reduction in cost to reflect taking on the risk you are still in a good place.

From a solicitors and banks perspective you are in a strong position because you are not obliged to share the engineers report with either of them and you say the solicitor has already received compliance certs for the extension.

If the price of the property represents value even with the issue then i would be inclined to go with it.