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I would not listen ever to the “you’re getting it at a good price” comment he is not impartial and has no incentive but to close the deal. It’s done to send you into panic but as it is your first flat I assume you are not in a chain or can you focus on staying put while this is resolved? I would take the sense of urgency out of this as any potential buyer is going to come up against this. Try and hold your nerve on this as this is easily where things wobble and people make rash decisions to jump without all the information.
Since Section 20 work is complex and costly, it’s completely reasonable to need a closer cost estimate. If no quotes are available, the freeholder or managing agent should at least provide an estimate range based on similar projects in your area. You can ask if there’s a consultant overseeing the project who might give you insights. What I don’t want is anyone withholding information from you, which can legally happen because you’re accepting the risk. Its completely unreasonable that they will not disclose costs because of the stage you are at and you are within your rights to say, I will await the costs on this issue, as much as any buyer will wait for the costs on an issues that comes up in the survey that requires work.
If the cost estimate for a similar building’s work was between £1.25 million and £1.65 million, and it’s split among 130 flats, you’re potentially looking at between roughly £9,600 and £12,700 per flat. If the previous similar project cost £480,000, that would put your share closer to £3,700.
Given that this is major work, you could reasonably negotiate the price down to account for a significant portion of your expected share of the costs. This might offset some future financial strain from the increased service charges and the Section 20 contribution. Even if the seller is reluctant, a well-reasoned approach—of exactly these facts is entirely reasonable leverage. The only question of taking the hit is if you had a potentially costly reason to move in quickly that will otherwise cost you.
Given that Section 20 work was not disclosed initially, I would ask your solicitor whether this might impact the agreement, especially if the seller had prior knowledge. I would expect the solicitor to present all these points on your behalf as you have without any doubt cause for concern.
Hope that helps give you some guidance, let us know what you think and how things go.