First time buyer & a lower ground floor flat (leasehold):can there be a happy ending?

Rockaway_BabyDoll

@kmmr: Thanks for posting, sorry, I'm at work at the moment so can't respond but will try to tonight.

The estate agent has called to say that the lease is very short at present (I meant to ask how short but my attention was diverted, darn it, but he said "you wouldn't be able to get a mortgage to complete on it at the moment" - this may explain why the vendor got it for £147k) but the vendor will pay to have the lease extended to 125 years in time for my possession, though won't be doing this until an offer has been made, a solicitor instructed, a survey completed etc. I said "I don't feel comfortable paying money for anything until I have it confirmed that the lease is 125 years, so really hope the vendor will go ahead with extending it before I get things rolling my end".

I hope I'm not being unreasonable. After all, to sell it he'll have to get the lease extended eventually anyway. What's more, why would I take the risk of paying for surveys etc and then it doesn't get extended. If this is normal practice, it's quite bizarre. All a learning experience though.

kmmr

That is a real problem - but mainly the vendors problem. Lease extension can take some time, and I would also use it as an opportunity to see if you can get some garden added. Unlikely, but worth a go.

To be honest no-one will go far on the flat while there is a short lease, so don't feel under pressure to rush forward on other things. The survey is a waste of time anyway, as the banks valuer will downvalue it, and not lend against it while the lease is short. They won't take an extended lease into account of the word of the vendor - it has to be done before the valuation survey. (I believe)

So - make the offer, instruct a solicitor, and explain the bank won't do the valuation until the lease is extended as they will only consider the current legal lease, and not the fictional one that is being discussed. I would play hardball here, as they may just stall for time, then say 'oh, it 99% done, just complete and you can sort it later' and you are left with a mess. NEVER trust that these things are nearly done, if it's so close, then tell them to finish it themselves.

I have an excellent no-sale no-fee solicitor. I can PM if you want. He will give you honest advice, and has encouraged a few of my friends not to buy due to problems with the flat, even though it meant he got no fee. This is important as sometimes no-sale solicitors will encourage you to buy a bad flat just to make sure they get a fee. One of the few solicitors I know who actually values his reputation! He is in Oxford, so I have never met him, nor have any of my friends who has used him, but this hasn't been a problem. Some people prefer a local solicitor, but I think having someone always available at the end of a phone line to answer every little question with patience is just as good!

kmmr

PS. In this case you are definately NOT being unreasonable. You can change a lot in a flat yourself, but this kind of legal stuff is a real pain as it involves someone else, with vested interests and a huge amount of power over you.

Make this is vendors problem. As you said he probably got a good deal on the purchase due to the lease, so make sure HE solves it before reaping the benefit of a longer lease. You have to wonder why it wasn't extended for the last sale... maybe freeholder causing problems/refusing the extension??

devotee

kmmr wrote: »

http://www.rightmove.co.uk/property-for-sale/property-34871465.html

Garden: This would be a deal killer for me. Since it is on your 'important' list, I wouldn't accept a house which has a garden you can look at, but can only access on the whim of the freeholder. Plus this gives me the impression that the freeholder still feels it is 'their' house, and will always make you feel like a tenant rather than an owner. Being beholden to being 'liked' by the upstairs neighbours, who could be an annoying busybody is not something I would like to have to deal with. I'd say negotiate and see if you can get formal ownership of at least a few m outside those doors, although it may be a problem is the current seller doesn't own it. Imagine the situation where you have a party, it's a bit noisy so you get Mr Freeholder offside. He then bans you from all access to the garden, and decides to store all his tools and garden rubbish outside your french doors. So you can only look at a garden over some rubbish, but never use it.

If you are worried about a mess outside, imagine how annoyed you would be with a scrpapy garden you can't clear.

Plus the freeholder can do this for any infringement of your lease that he is unhappy about. When buying a leasehold flat, for me one of the most important issues is getting a feel for the freeholder. Will they be professional, or overly personal about the property. I wouldn't want to end up in a situation where I have to keep the freeholder 'sweet' just to live in my home as I want to. My block doesn't have a sinking fund or an annual fee, but we manage it ourselves and chip in when needed. If all people involved are pragmatic and professional this can work fine, so again it comes down to your impression of the freeholder.

I wouldn't like to live below the freeholder either, too much power and too close for my liking, might make you feel like you're just renting!

OP I'm buying in Chiswick (west L) and unfortunately much more that you're paying, but then I'm not a first time buyer, buying with my OH and we have dogs - had to ask permission to have them on the property.
I guess you stick to the area you know, so that's what we did.

Lots of things you can change in the property, as long as it's livable in the beginning, you can stay there for a while and see what improvements you can do. I'm planning to gut the whole place eventually

devotee

Rockaway_BabyDoll wrote: »

The Springbank property doesn't tick all my boxes but seems very workable. The only thing is, at the moment, it's OIEO £215k and I don't really want to stretch my finances that far. So I'll have to watch and see what happens with it/ask the EA to let me know if it drops.

OIEO 215k, you can just offer 215. No one wanted it at 225 as that's what it was originally listed for, so I imagine the vendor would settle for 217k.

mundibananas

I would avoid living in a basement flat like the plague !!! From my experience they are damp - and damp is not good to live with. It ruins your possessions, and it's bad for your health. Avoid Avoid Avoid ! Plus the other considerations mentioned such not being able to leave windows open for security (which excacerbates damp problem even more)

devotee

mundibananas wrote: »

I would avoid living in a basement flat like the plague !!! From my experience they are damp - and damp is not good to live with. It ruins your possessions, and it's bad for your health. Avoid Avoid Avoid ! Plus the other considerations mentioned such not being able to leave windows open for security (which excacerbates damp problem even more)

Not all basements are damp, that's just silly to say. You can say the same thing for ground floor flats then, both for security and damp.

First floor flats are more expensive, so if I were the OP I'd go and see that roof terrace place! Find out if the loft room can be converted to be a proper bedroom and if it can, then you can easily add value by making it a proper bedroom. But I love that kitchen diner that opens to the roof terrace! Hope the rest of the flat does not disappoint!

mundibananas

devotee wrote: »

Not all basements are damp, that's just silly to say. You can say the same thing for ground floor flats then, both for security and damp.

First floor flats are more expensive, so if I were the OP I'd go and see that roof terrace place! Find out if the loft room can be converted to be a proper bedroom and if it can, then you can easily add value by making it a proper bedroom. But I love that kitchen diner that opens to the roof terrace! Hope the rest of the flat does not disappoint!

Fair comment, but I still wouldn't go near one after the experience I have had. If it's not damp now, sooner or later the tanking/proofing will fail and it will become damp. Water has a way of finding weaknesses and penetrating through. I personally would avoid.

kmmr

devotee wrote: »

Not all basements are damp, that's just silly to say. You can say the same thing for ground floor flats then, both for security and damp.

Or houses for that matter. Which have roofs and earth to cope with! Yet everyone seems to aspire to them on this website.

evoke

Jeez.

The answer is no. Avoid ground floor flats unless you have no other option. You'll be at the mercy of the scumbags living above you.