Questions after my very first viewing

Shoppy_2

Hello all,

I have been saving hard for what seems like forever to build up a deposit for my first home and today was my very first viewing of a 1 bed flat. The situation with this property is a bit complicated and hence I have come away with quite a few questions!

The property is grade II listed and comes with a share of the freehold. Apparently the roof needs some major work and the residents (I believe there are ~20 flats in the building) have been asked to stump up between £4-6k each. The asking price has been dropped from £150k to OIEO £130k as a result.

I've done some reading on freeholds and leaseholds but admit to still being rather confused. What are the key things I should be trying to find out at this stage? I like the property but wouldn't even consider making an offer until I understand the situation better.

Do I need to be concerned about how the freehold is managed? I imagine there is a management agency involved but I've read the the joint freeholders could do this themselves?

Does the service charge normally include buildings insurance? Or do I need to check this?

Can I ask to see the correspondence that would have been sent to the residents regarding the work? Can I find this out?

Can I see a copy of the lease at this stage?

Would the impending repairs affect a mortgage offer?

Should there not be a sinking fund to help cover the repairs? Should I be concerned that this does not seem to be the case.

What benefits do owning part of the freehold bring? Is it possible there could be freeholders and leaseholders in the building and what would this be significant?

As the property is listed are there any other questions I need to be asking at this stage?

I intend to view other properties and have by no means set my heart on this yet, but I feel like I need a lot more knowledge to help me make a sensible decison. Any advice or guidance to help this confused first time buyer are much appreciated!

Owain_Moneysaver

Shoppy wrote: »

I have been saving hard for what seems like forever to build up a deposit for my first home ...
The property is grade II listed and comes with a share of the freehold. Apparently the roof needs some major work

I think I'd run away now. Listed buildings can be expensive to maintain and repair because everything has to satisfy the conservation officer.

Do I need to be concerned about how the freehold is managed? I imagine there is a management agency involved but I've read the the joint freeholders could do this themselves?

They could - the structure, terms of appointment and remuneration of a management company requires careful scrutiny.

Does the service charge normally include buildings insurance? Or do I need to check this?

Sometimes yes, sometimes no. You do need to check. And make sure the premium is up to date!

Can I ask to see the correspondence that would have been sent to the residents regarding the work? Can I find this out?
Can I see a copy of the lease at this stage?

You can always ask.

Would the impending repairs affect a mortgage offer?

Yes they may do.

Should there not be a sinking fund to help cover the repairs? Should I be concerned that this does not seem to be the case.

Sinking funds can help fund ongoing repairs but it's common for major items to need a one-off payment from owners.

What benefits do owning part of the freehold bring?

You don't have to pay rent to a freeholder and you (may) have more freedom what you do with the property.