I’ve finally decided to take the plunge and buy a property to live in. After months of searching, I found one I absolutely love, mainly due to its location and the potential to renovate it to my taste.
The property is a mansion very close to a Yamanote station on the west side of Tokyo and includes land rights. The building is over 50 years old and is considered non-compliant because the land it sits on was subdivided after the building received its certificate (台帳記載事項証明). As a result, the floor-area ratio now exceeds the current legal limit by 1.2x.
We’ve tried obtaining financing from SBI Shinsei, SMBC, Mizuho, and Shizuoka Bank, but all have declined due to the building’s non-compliant status.
I have two main questions for the experts out there, but I’m also open to any useful advice:
- When we signed the contract, neither the seller (a real estate investment company) nor I realized how difficult it would be to secure financing. Now, even if I do find financing, it seems unwise to pay the current asking price which is, I think, roughly the market price for a property that could be easily financed. What should I try to negotiate with the seller? What’s a typical discount for properties like this?
- The seller is currently revising the key information in the Important Matters Document before we approach the next bank. Which bank would you recommend for this type of property?
by NoFlamingo5897