Sale Agreed - Planning issues

SirustheVirus

Hi Folks,

I recently went sale agreed on a house purchase and paid a deposit to the Estate Agent. My solicitor advised me to get an engineer to check out the house and planning permission compliance etc.

It turns out there is a major difference in where the house was built and what was agreed in the planning and he advises that the vendor will now need to apply for retention which would take at least three months.

My question is am I now in a position to bargain with the vendor and get the price reduced? This is a major inconvenience to me now as I was hoping to complete the sale in the next few months as had tenants lined up to move in and rent existing house and the mortgage approval period will expire.

Has anyone any similar experiences here and did you go back and negotiate with the vendor?

Gumbo

You are only in a position to offer less if you want to take the risk of lodging the retention app. If the vender lodges and gains permission then the house will still be worth its current value or maybe more by then.

We're there any other interested parties? If you back out will it sell easily again? The vender has to weigh up these questions also.

You either wait out the 2 months (from date of losgement) or you move on and buy another house.

drunkmonkey

Yea took about 6mts due to numerous issues. Didn't get any discount, was happy to have the deposit down and property secured. We complained like yourself to no avail, house sales take time.
Get your solicitor to lock them in, just incase somebody makes a counter offer and your cut out.

Zzippy

Been there, bought the t-shirt. Are you getting a mortgage or is it a cash sale? Banks will not loan you money on a house that needs retention for even small things like a dodgy skylight or extension. If it's a cash sale there is nothing legally stopping you from going ahead, although you will have the same problem when you try to sell the house unless you have regularised the planning in the meantime. As kceire said, it may be inconvenient to you, but not grounds for a discount unless you're taking on the risk of getting retention yourself after purchase.

Metric Tensor

Yup - as everyone else says - two options:

1. Make the vendor get retention and then pay the agreed amount in 3ish month's time.

2. Look for a discount and risk buying a house that is not compliant.

Choice 1 is the correct one unless you are a property speculator who can afford to take a hit on the property - but if you were that you wouldn't be here asking us!

SirustheVirus

Thanks for the reply's folks.

Yeah I have a mortgage secured which will expire now due to this dragging on. I was hoping to use this planning issue as a tool for bargaining the sale agreed price but I suppose I am relying on the good will of the vendor (if there is any). I am not sure there was a lot of competition at the time but again not sure if I want to take the risk. Its just going to make this drag on and on.

Angry bird

It's pretty common. I would say half of the retention planning applications that I come across is because there's a sale going through. Assuming not a refusal or further information request, looking at 12 weeks for final planning grant to go through.

Zzippy

Angry bird wrote: »

It's pretty common. I would say half of the retention planning applications that I come across is because there's a sale going through. Assuming not a refusal or further information request, looking at 12 weeks for final planning grant to go through.

Depending on the age of the house, it can take a lot longer. If sightlines or septic tank are an issue it can take months. We were sale agreed on one house but the septic tank was 1970s era and the LA insisted on a new treatment system. Sightlines were also an issue that weren't considered in 1970 and a lot of trees on a neighbouring property would have had to be knocked. Had to pull out eventually, as it turned out it was a blessing in disguise, the house is now under CPO for a new road.