Unmanaged Flat.

supersaversarah

I have found a flat, almost negotiated an acceptable price but now I am having doubts as it is actually in an unmanaged block.

Does anyone know the implications of a flat being unmanaged? Who is responsible if the roof leaks, or there is damp. What about the communal entrance, what happens if it smashed, needs replacing etc...

There are only 6 flats (3 floors) in this block (the one I am interested in is on the second floor), and all privatlely owned, although two are rented out.

I really like the flat, but am worried it may cause a problem when I come to sell..

Can anyone help?

Thanks.

Sarah

Wickedkitten

Do you mean it's unmanaged, or that it is freehold?

supersaversarah

Sorry, I'm new to this.

Its leasehold. The current owner said when he bought it she was told she'd have to pay about £5 per year, but that she has never received a bill for this.

I mean it is unmanaged in the sense that there is no service charge.

Am I making sense?

Thanks

david29dpo

no service charge? buy it!

Doozergirl

If your lease is suffuciently long enough to be over 70/80 years when you come to sell on, then there shouldn't be any problems. The reason I say this is that if you are not even getting billed for ground rent that you could have an absentee freeholder and it could be a little more longwinded getting a lease extension.

In terms of it being unmanaged, if something needs doing, all flats should contribute an equal cost towards the work. There should be a clause in the lease that makes this legally enforcable.

I've lived in unmanaged flats before without problems. I'd try to check that there is't too much that needs to be done in the near future, but this advice would count on any property really, because maintenance costs money!

hazeyj

Do you who actually know who owns the building? You will have to think about who pays bills for instance if the roof was to leak, who pays the bills to light any communal corridors, who pays the building insurance etc It will say in the lease who is obliged to pay these bills whether it be the leaseholders or the freeholder.

dander

Personally I would be concerned. As you say in your post "who is responsible?" I think you need to speak to the vendor - if there is some kind of arrangement between all the leaseholders where they agree these things between them, then it would probably be fine - but if there's no agreement - then you might find things tricky.

Who is paying the buildings insurance? Is the buildings insurance definitely being paid? If the freeholder isn't around asking for ground rent, I would be concerned that there is no buildings insurance in place. Also if it's been unmanaged for a while - what are the communal areas like? I would worry that this means there hasn't been any maintenance for years and the work could building up, or the building deteriorating, so that when the bills do eventually come, they'll be big ones.

hazeyj

Also, if your using a mortgage, your mortgage co will not pay out any funds until they have seen a copy of building insurance document. Let us know how you get on.