Mortgage on apartment with management issues..

daleuk_3

Right been to look at an apartment.. I like it and everything.. however the communal areas need attention and so does a bit of the guttering (not major). Its a small converted house of 5 flats.

I don’t yet know the details. But the condition of things would lead me to think that the management company are not doing there job/if there is one at all.

I dont mind there not being one. I could sort that. But I believe this would mean the bank would not lend me the money?

Doozergirl

That's right, unless the lease dictates that you maintain the buildings yourself. Otherwise they will expect to see some formal arrangement that meets the terms of the lease.

daleuk_3

Doozergirl wrote: »

That's right, unless the lease dictates that you maintain the buildings yourself. Otherwise they will expect to see some formal arrangement that meets the terms of the lease.

Ok so if the lease says that a particular company manages the property. Should this info be available from the estate agent? (its a repo). This company no longer exists, can I not go about appointing another? whom should be doing this? the lease owner?

Thanks all

Doozergirl

The property should have a HIP - the lease should be in that HIP.

The problem with a repo is that they can't get hold of information sometimes so it's missing information that a neighbour can tell you immediately - I had exactly this a few months back buying a repo. A sale had already fallen through and the flat was labelled as unmortgageable but everything was known by the people that lived there.

I strongly suggest that you knock on a couple of doors and ask your potential neighbours how it is being run.

The freeholder is responsible for organising the management of the building unless the leaseholder have legally taken the Right to Manage (RTM), have a company set up and still registered with Companies House. If you do not have the RTM then the only person able to organise the management to the satisfaction of a lender is the Freeholder.

I suggest you brush up on your leasehold terminology at the very least if you're going to be buying one! www.lease-advice.org

daleuk_3

Damn so the only way as a potential buyer to sort this would be to get the freeholder to do it.. ill get more details on the lease and get back to you guys.