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Please help - my first property

I am looking for my first property at the moment in southsea area, Portsmouth.

I found a converted 2 bed flat in a good area last week. However, the agency said the the owner has not paid ground rent and service charge for 7 years as no one asked for them. The agency suggested I could buy an insurance for them just in case. The flat is leasehold and has 89 years on it.
This property has been in market for 3 months but no offer received.

Should I walk away from this one? Anyone has any idea how much for pay them all. Thanks.:A

Comments

  • pie81
    pie81 Posts: 530 Forumite
    Hmm. Well I suppose you could get insurance to cover the risk that the landlord suddenly asks for 7 years' worth of service charge and ground rent (though personally I would insist the seller pays for this insurance as he's caused the issue by not paying).

    But I'd also be a bit worried about the fact that the landlord hasn't asked for payment. Suggests no one is really managing the property or looking after it at all. So if you buy the place and there is then, for example, a problem with the roof, the landlord is unlikely to take any action to fix it.

    I wouldn't necessarily walk away but definitely do some more digging about the landlord, find out who they are, has there been any contact from them, when was the last time any work was done to the property by them, etc.

    Also...89 years... it's ok but on the short side. Price should reflect this.
  • Thanks, pie81!!

    Should I contact the owner for the landlord or find it out by myself? I really like the flat as it is a Victoria house conversion and only has 2 flats in total.
  • pie81
    pie81 Posts: 530 Forumite
    Doubt you'd be able to find it out by yourself. I'd explain your concerns to the EA (i.e. that you are worried that there is no active landlord or managing agent) and ask what further information the seller can provide about the landlord.

    If the seller can't provide any information or doesn't seem to have heard anything from them in the last 7 years... then I would walk away I'm afraid.

    Bear in mind however there is a trade off. If you or the seller stirs up an inactive landlord, this may make it more difficult to get insurance to cover the unpaid service charge/ground rent.
  • We bought a flat where the previous owner had not paid any of the service charges/ground rent for several years. He had been billed by the management company, but he had mental health problems and therefore still didn't pay.

    The arrears were settled out of the money he got for the flat. The solicitors saw to it, we didn't have to do anything.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • Fire_Fox
    Fire_Fox Posts: 26,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Do not listen to what an estate agent says, they do not work for you and will always underplay any problems. The freeholder will not speak to you about any debt under data protection - your solicitor will have to ask the vendor's solicitor who will ask the freeholder!! Your conveyancing solicitor will usually refuse to complete the sale unless the arrears are settled, as the new leaseholder takes on all liabilities. This may mean the vendor pays and it may mean you decide to pay to get the sale to go through. Everything leasehold here:
    http://www.lease-advice.org/publications/
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
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