Considering pulling out of leasehold purchase due to Section 20 works / no sinking fund — are we overreacting?
We are first-time buyers and are currently considering pulling out of a property purchase.
Our Level 3 survey flagged issues with the windows, roof and various other things. I know surveys will almost always find something, so initially we weren’t overly concerned.
However, we then received the LPE1 pack and there are Section 20 documents discussing works to the windows and roof of the block that the ground-floor maisonette we are buying forms part of.
There is no sinking/reserve fund for the property, just the buildings insurance. Our solicitor has explained that if major works go ahead, we could potentially be asked to pay our share as a lump sum, or possibly through instalments over a relatively short period.
The freeholder/management company is Abri, so I’d also be interested to hear from anyone who has experience with them and how they deal with major works/Section 20 charges.
The problem for us is that we are already close to the top of our house-buying budget. We would have a cash buffer remaining after completion, but not enough that we’d be comfortable suddenly receiving a large bill for windows, roofing or other major works.
We really like the property and it ticks most of our boxes. Freehold houses where we live are considerably more expensive, which is why this maisonette worked financially for us.
I’ve emailed our solicitor explaining that we are considering withdrawing because we can’t properly assess the financial risk without knowing what these works are likely to cost, but communication has been quite slow.
Has anyone bought a leasehold property in a similar situation? Would the combination of proposed Section 20 works and no sinking fund be enough to make you walk away, or is there anything else we should be asking for before making the decision?