Proposed service charges

ixwood

I personally wouldn't touch it, but it's hard to really put myself in your situation.

If the blocks in good repair, then thats good i guess. I'd just be very wary of the council seemingly be able to send you a bill for whatever it wants whenever it wants. As no one else will be paying in your building and councils are always skint, it wouldn't be very surprising if they tried to squeeze whatever they could out you.

All leaseholds will have maintenance bills, but normally the flats would all be privately owned and not subject to major rounds of work many years apart, meaning the amounts would be split fairly and smaller IMO.

The discount does look healthy. Have any actually sold for that sort of money? Is it reasonable value? Pretending you had that much, would you pay that sort of money for one? Are there available renters for the block? It doesn't sound too desirable!!

On a more general note, if you believe a housing crash or recession is a possibility in the next few years (there's a lot of specualtion either way. No doubt that things can't go on this way forever though) then your discount could easily be wiped out.

clutton_2

two things come to my mind

is there a tenant demand - a few ads in your local paper advertising your flat for rent will tell you if there is or not;

if this is the first flat to be sold in the whole block you will have great difficulty getting a mortage at a decent interest rate, as Lenders will have no "historical infomration" to compare to your flat.

i would find a mortgage broker and get his view on the finances before making any decision.

reverie

I owned a 60's highrise a couple of years ago in 'posh' Edgbaston luvleighr. It had quite a lot of grounds, car parking, lifts, full time caretaker (and his associated living costs to be onsite full time), intercoms etc etc, there were 60 flats and it was about £1,500 (plus VAT) service charge. Where abouts is the flat in Brum out of interest?

Unfortunately it is normal for them to over budget initially, before there has been a year of actual service charge expenditure to base the budget on. Can't be helped really, as they don't want to be out of pocket if they overspend and can't get the leaseholders to cough up when the service charge is reconciled. However, they should have reasoning for the figures in the budget. I think you just keep on and on at them to reconsider the figures, they will come up against this sooner or later anyway.

luvleighr

Hello again all

After much discussion with many people and an all important meeting with a mortgage broker I've decided against my plans and am now going to look elsewhere to buy.

Thanks for all your input )