Mortgage on Studio with no Management Co

Hourglass

Thanks Fitzy29. Given the nature of the advice on the board so far and the difficulties so far, can't help wondering if I should withdraw my offer but I know that I will not find anyting in my price range . I have considered waiting for a year or so until I am earning more but then prices will have gone up again. Does it matter if I dn't actually make any money on the property as long as there isn't any negative equity?

I have made a note of your questions to ask but am getting a bit worried now whether I'm doing the right thing.

EdInvestor

The estate agent told me of another owner in the builder who had converted their studio into a 1 bed so it may be possible although the rooms will be very small. I feel that studio flats are becoming more acceptable to buyers especially FTBs like myself as there is not really any other way to get on the ladder

I would agree with this.A studio that is big enough to be converted to a one-bed should be OK.It's the really poky studios that are difficult to sell in a downturn. Renovating flats is quite normal, subject to the usual building regulations.

I would keep going until your questions are answered Hourglass.You have nothing to lose at this point.

You don't have a link to a website showing the property - and/or showing other cheaper flats in the area ( preferably studios or 1 beds) do you? Might help to get a better idea about it.

EdInvestor

Good explanation of leaseholder/freeholder rights and responsibilities here:

http://www.lease-advice.org/livingmain.htm

Hourglass

Would like to say thanks again to everyone for all your help and will post again tomorrow once I have asked all my questions and hopefully received some answers.

Hourglass

OK have spoken to the estate agent and have some positive news:

I have the name of the freeholder and there is a management company who are responsible for the buildings insurance for the whole building to which I would pay along with ground rent. They would not discuss the costs with me and said I would receive an information pack from the seller's solicitor with all the details on.

This seems better!

MortgageMamma

Get in touch with the seller#s solicitor and ask what the costs are they could be astronomical for all you know. It is likely that the estate agents just didnt know the costs. get back onto estate agent and either ask them to find out or for the sellers solicitors details.

Good luck, glad its starting to take shape for you!

Hourglass

I spoke to a lady at the management company during a very manic lunch hour and she would not tell me the costs no matter how I tried. I may contact the seller's solicitor to see if they know something or is this underhand?

EdInvestor

Ah, this is more like it

No problem to ask the seller's solicitor. The info is usually on the property particulars at the agents in areas where leasehold flats are very common, as it's one of the first things buyers want to know (obviously).But if most property in the area is freehold, the agents may have not thought to provide it.

They all sound a bit bureaucratic but perhaps that's how it's done in the area...:rolleyes:

Hourglass

The EA was very helpful and said he had looked in some files of another flat that had been sold a little while back in the same building. Once I had the name of the management company I rang them and got as much info as I could. The freeholder is Barretts of York which sounds good so things are looking more promising now!

Just need to get the mortgage sorted now - going through London and Country as recommended on this site and they seem fairly helpful. I'm probably being very impatient but I just want to get on with it now!

EdInvestor - thanks tremendously for the link which helped explain so much to me and was written in plain English. I will be contacting the seller's solicitors tomorrow so hopefully they will have some info too.

It does seem very bureaucratic but the whole process does to me.....