Condemned property post

[UKBob]

Ive got a mate who owns a nice big spacious flat, and has been in the same property for eons, and is very happy there.

However, the building had subsidance which worsened terribly over the years, to the point that it has now been valued as absolutely worthless. ie Its worth absolutely nothing at all! Banks wont grant a mortgage on it so its unsalable, she might get (literally at the best) a couple of thousand quid for it, or a ridiculously small cash offer in that league. The roof has also had it, and would cost an absolute fortune to fix. She is gutted beyond belief, naturally.

She only found out today, said she really doesnt want to talk about it right now, and also mentioned seeking legal advice. Id like to help or be able to suggest a sensible plan of action, but to be honest I dont know much more than that, and have no idea what options she might have? I dont have a mortgage, and dont know what kinds of guarantees or security banks offer regarding things like subsidence etc.

[gtr-gaz]

You say it's a flat? What's happened to the other owners/occupiers in the building?

Surely they must be affected too.

[robinhood21]

Never had a flat, but surely there must be insurance on the building to cover such things as subsidence. The roof, unless damaged by storm etc, would have to be covered by all of the residents.

[chrisgr31]

There are several issues here and I think she should be seeking professional advice from a lawyer and possibly a surveyor.

Presumably there should have been insurance on the property, which should have covered subsidence, and the insurance payment should be covered by the service charge which should have had a sinking fund included for all the expennsive wear and tear items such as roof.

Are the other flats in the building empty? If so who owns them? My suspicion would be that there is a freeholder who is seeking to pay her peanuts to go so that they can re-develop and make a fortune.

Professional legal advice is a must

[Parrot of Doom]

The land will be worth massively more than they're offering for her flat, so something smells fishy to me.

[Piglet]

Yep, more info please. She presumably owns the leasehold of the flat? Is there a freeholder or do the flat owners own the freehold? How many flats? Just residential or commercial property in the same block as well? Does she pay a service charge payment or just have a liability to contribute to repair and upkeep? Has she made any payments for repairs? Has she raised issues with the freeholder, told them when things obviously needed repairing?

She needs good advice, I would be very concerned that she is being exploited here. She should check any insurance policies she has to see if she has any legal expenses cover, it's often thrown in on contents insurance policies. If she does they may well fund a solicitor to look into this.