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    • anon_private
    • By anon_private 11th Jul 17, 11:54 AM
    • 92Posts
    • 3Thanks
    anon_private
    Buying a Flat
    • #1
    • 11th Jul 17, 11:54 AM
    Buying a Flat 11th Jul 17 at 11:54 AM
    Couple of questions.

    For a cash buyer, what is the amount below the asking, in percentage terms, that I could offer for a property and still be realistic?

    When is the best time to appoint a solicitor in relation to buying a flat. I assume when I have located the flat that I want to purchase. Am I correct?
Page 2
    • anon_private
    • By anon_private 12th Jul 17, 12:38 PM
    • 92 Posts
    • 3 Thanks
    anon_private
    I would use someone local. Firstly all conveyancers will need ID and it's easier to take it into somewhere nearby. Secondly I'd choose someone at least known to the estate agent, even if it's not their recommended firm - it can oil the wheels a little if problems develop as the deal goes through.

    And talking of problems most conveyancers will do an OK job on a straightforward deal (though some are mighty slow), but if any issues develop (and there are so many that can) you can expect better service from a more expensive solicitor, so don't automatically go for the cheapest.
    Originally posted by ThemeOne
    I have used the calculators to find the cost of conveyancing.

    I don't know why it is so expensive, about £3500.
    • Crashy Time
    • By Crashy Time 12th Jul 17, 12:48 PM
    • 4,413 Posts
    • 2,028 Thanks
    Crashy Time
    If you want the flat offer a sensible amount. If you don't then go for 15%...you'll still be paying off a landlord's mortgage in 20 years just like some folk above.
    Originally posted by glasgowdan

    You will also still be paying off your own mortgage in 20 years, so unless you think interest rates will be near zero for all that time don`t over-pay now. 1 or 2% under someone`s delusional kite flying price is a joke, and many people are catching on to the joke judging by the way sales volumes are going?
    • anon_private
    • By anon_private 12th Jul 17, 5:47 PM
    • 92 Posts
    • 3 Thanks
    anon_private
    Just been to view a flat.

    One of the things that I have never considered before is the suppliers of services.

    In a freehold property the householder will decide which company supplies, say, the gas and electricity.

    I mentioned this to the agent who showed me around the flat. He had no idea which company supplied the gas/electricity.

    My question is: If someone moves into a flat do they simply have to accept the companies that supply the gas/electricity/water? Who decides which companies to use? What about value for money?

    This flat is leasehold and not leasehold with a share of the freehold.

    Thanks
    • Crashy Time
    • By Crashy Time 13th Jul 17, 12:27 PM
    • 4,413 Posts
    • 2,028 Thanks
    Crashy Time
    Just been to view a flat.

    One of the things that I have never considered before is the suppliers of services.

    In a freehold property the householder will decide which company supplies, say, the gas and electricity.

    I mentioned this to the agent who showed me around the flat. He had no idea which company supplied the gas/electricity.

    My question is: If someone moves into a flat do they simply have to accept the companies that supply the gas/electricity/water? Who decides which companies to use? What about value for money?

    This flat is leasehold and not leasehold with a share of the freehold.

    Thanks
    Originally posted by anon_private

    You can change companies as you please I believe, but unless there is heavy power usage I doubt it would really be worth it?
    • G_M
    • By G_M 13th Jul 17, 12:34 PM
    • 40,188 Posts
    • 45,922 Thanks
    G_M
    No one has any choice over water supplier.

    But you can switch gas, electrics, landline suppliers.

    You're stuck with whoever supplies building maintenance unless you team up with other leaseholders under RTM.
    • glasgowdan
    • By glasgowdan 13th Jul 17, 4:01 PM
    • 2,262 Posts
    • 2,509 Thanks
    glasgowdan
    You will also still be paying off your own mortgage in 20 years, so unless you think interest rates will be near zero for all that time don`t over-pay now. 1 or 2% under someone`s delusional kite flying price is a joke, and many people are catching on to the joke judging by the way sales volumes are going?
    Originally posted by Crashy Time
    Do you know how repayment mortgages work? https://en.wikipedia.org/wiki/Repayment_mortgage
    • anon_private
    • By anon_private 14th Jul 17, 2:13 PM
    • 92 Posts
    • 3 Thanks
    anon_private
    I have assumed, regarding flats, that surveys are not needed because the building owner is responsible for the external structure.

    But then I viewed a flat with a large crack in the wall. Could have been plaster damage, but I don't know.

    I have read the foot notes of properties advertised by agents, and they stress that their firms have not tested appliances, etc., and advise a survey.

    Two points: Is a survey a good idea regarding a leasehold flat?

    When should a survey be conducted, after an offer I assume, then it may be appropriate to amend the offer, or even withdraw?

    Thanks
    • Penitent
    • By Penitent 14th Jul 17, 3:28 PM
    • 1,275 Posts
    • 3,765 Thanks
    Penitent
    Anon, can I recommend picking up a book on house-buying from your local library or book shop? Or reading a few articles about it? You sound a bit lost. (That's not an insult, I was fairly clueless when I started looking and that's what I did.)

    For example, if you google "survey leasehold flat", you'll find loads of advice on which surveys you might consider.
    • anon_private
    • By anon_private 14th Jul 17, 6:15 PM
    • 92 Posts
    • 3 Thanks
    anon_private
    Anon, can I recommend picking up a book on house-buying from your local library or book shop? Or reading a few articles about it? You sound a bit lost. (That's not an insult, I was fairly clueless when I started looking and that's what I did.)

    For example, if you google "survey leasehold flat", you'll find loads of advice on which surveys you might consider.
    Originally posted by Penitent
    I you have an opinion regarding my questions, please let me know

    'Two points: Is a survey a good idea regarding a leasehold flat?'

    'When should a survey be conducted, after an offer I assume, then it may be appropriate to amend the offer, or even withdraw?'
    • eddddy
    • By eddddy 14th Jul 17, 6:30 PM
    • 4,830 Posts
    • 4,468 Thanks
    eddddy
    I have assumed, regarding flats, that surveys are not needed because the building owner is responsible for the external structure.
    Originally posted by anon_private
    I'm not sure if you understand how this stuff works.

    Typically, the freeholder is responsible for arranging repairs to the building - but the cost is split between leaseholders.

    So, for example, if you find a house converted into two flats, and you buy one of the flats - and the roof later needs replacing, you'll probably have to pay 50% of the cost of the new roof.
    • anon_private
    • By anon_private 14th Jul 17, 9:15 PM
    • 92 Posts
    • 3 Thanks
    anon_private
    I believe that in a block of flats the service charges and the reserve fund would be used
    • bouicca21
    • By bouicca21 14th Jul 17, 9:47 PM
    • 2,994 Posts
    • 3,674 Thanks
    bouicca21
    I believe that in a block of flats the service charges and the reserve fund would be used
    And who do you think pays those?
    • anon_private
    • By anon_private 14th Jul 17, 9:53 PM
    • 92 Posts
    • 3 Thanks
    anon_private
    And who do you think pays those?
    Originally posted by bouicca21
    The leaseholders of course
    • Alexland
    • By Alexland 14th Jul 17, 11:43 PM
    • 39 Posts
    • 20 Thanks
    Alexland
    Flats tend to sell to first time buyers and investors. Ok some people are downsizing or going through a divorce but why would I sell to someone with a chain when I don't have to?

    I have bought and sold properties and learned to distrust initial information provided by buyers, sellers and estate agents (who are hopeless at qualifying buyers) - the need for a mortgage or existence of a chain 'emerges' weeks later. On that basis I wouldn't offer any discount that would take it below it's fair market price.

    However it depends on the desirability of the property and sellers experience and circumstances.

    Alex
    • bouicca21
    • By bouicca21 15th Jul 17, 1:38 AM
    • 2,994 Posts
    • 3,674 Thanks
    bouicca21
    Ok so you understand that the leaseholders pay. Do you understand that from time to time there may be major works that have to be funded outside of the regular service charge and the reserve (and of course a reserve may not exist). Ergo you do need to worry about the structural integrity of the building.
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