Nasty surprises with leasehold charges?

Reply to the comment left by Kizzie at 04/01/2024 - 16:18
Leasehold is a minefield. Ask your solicitor if they are experienced in leasehold. If not, do not use them.

All flats now must have fire front doors fitted to meet the latest legislation, the front door to your property must be a fire door, you must have a fire door certificate and that it was installed to fire regulations. also beware some flat owners remove internal room Doors in properties which may cause a a non-compliance to both INSURANCE and regulations, if this happens they must be replaced.

The property may have a chancellory i. E for the local church roof. if this is the case, ensure that the seller buys an indemnity policy, around £250 which will cover the next 25 years.

Many of the other points have been covered, but it’s important to remember that for each of these points that bring the flag, it also brings the price reduction in your negotiations. Where leases are short, price reductions will be significant 30% plus depending on the length of this. As stated it’s important if the lease needs extending and you are still going to buy the property that you get the existing owner to start the process and to get quotes, this will save you a two year delay and it is more likely that you will get a better lease extension price. It may also pay you to hire a surveyor who can then argue on your behalf with the landlord to get a better price. Beware of additional conditions of the lease extension as these can be punitive in the future. Hence have them removed when you can.

If there is a gas boiler approximately 10 years, plus old you’ve got to factor in negotiations for a replacement. If it’s a normal system with a tank of course, you can save space using a Combi boiler.

Insulation. If you’re the top Flat is the roof void adequately, insulated all the walls insulated, what is the state of the windows are they recent standards or are they old Style Windows, maybe blown which may need replacing which are at your cost, price reduction!

In the bathroom can you see any evidence of mould because it’s poor ventilated and no extract defence, is it an old bathroom suite that you will end up having to change. It’s wise to get quotes for an installation of the bathroom and re-tiling, with a new floor, so that you can budget accordingly and negotiate the price

Then you have the kitchen what’s the state of the units, the worktops, can you replace the worktops easily if worn or is it a really old kitchen from the 70s, which needs replacing, if you’re doing that normally there are not enough sockets in the property, so get some more putting in.

The above applies to buying any type of property.

Even things like replacing lights with LED units can be quite expensive.

Gardens exist? are they being maintained? Well, I will maintain property keeps a better value and if rented attracts a better type of Tenant, normally.

Don’t be frightened to put in a low bid, especially if quite a few of the above apply, because other bidders will be considering the same and state agents love to inflate the price.

What is the number the floors in a property, the more noise you will get AND potential issues.

Reply to the comment left by Southern Boyuk at 04/01/2024 - 17:37Also look at the lease for restrictions on keeping pets. You don’t want a yappy dog or screaming parrot living above you. And check with the management company do they grant “a pet licence”. It’s a problem with my rental flat. Although lease states no pets they’re overriding this (naughty) and granting “a pet licence” for £90. Doesn’t affect my block too much yet, but block adjacent now sounds like Battersea Dogs Home !!

And do the local council insist on recycling ? If so it could be a nightmare with some tenants not recycling and the council refusing to collect the bins so private collections have to be arranged ? (I’ve been there worn the TShirt). Have a good look around the site and especially the bin stores. Is regular litter picking being carried out ? Look at the bin stores is there loads of rubbish, old mattresses, old microwaves. This week is a good time to inspect are the bins overflowing from Xmas ?

Reply to the comment left by Stephen Thompson at 04/01/2024 - 10:41
The seller needs to supply this. The purchaser doesn't pay for it.

Some freeholders/residents management companies do not charge anything for this. As a director of a residents Management Ltd company I dont charge to fill in the document.

Reply to the comment left by Shining Wit at 04/01/2024 - 11:23
Sorry but what a ridiculous thing to say.

Reply to the comment left by NewYorkie at 04/01/2024 - 16:30
It isn't a minefield. It's being able to read and understand your obligations and responsibilities.

I've always done my own conveyancing be it leasehold or freehold. It's not rocket science and not had a problem in 45+ years.

Whilst I am getting out of the PRS I still own both leasehold and freehold properties

So you are worried about those large section 20 leasehold maintenance bills that cost hundreds or thousands?

I understand. Im a freeholder. So I can explain.

When the roof needs doing or new laws come into force eg fire safety work in communal areas, it just needs to be done.

Just like if you owned a house.

Its extra work for me the freeholder to do. I dont get any benefit.

So you ask how often are these £1000 bill occurrences?

As often as a house you own outright.

Well it does depend on whether the ongoing maintenance has been sufficient to prevent unnecessary major works.

Purchasers of leases must check whether there is a maintenance fund under terms of the lease and the amount currently held is sufficient to cover major unexpected repairs.

Also what the lease covers. Most don’t cover roof and other structural repairs.

This falls on the freeholder and not recoverable out of service charge.

Freeholders must have block insurance cover for this type of eventuality

Reply to the comment left by Judith Wordsworth at 05/01/2024 - 21:03
Well done, you. But, the vast majority do not understand Leasehold, and rely [as they should] on their solicitor. Unfortunately many solicitors don't fully understand leasehold, and do not ask all the questions they should. If they did, we wouldn't have buyers finding themselves with problems they weren't advised about and didn't expect.