Homebuyer survey came back with 3s. Help!

torridonscot

Does it say service charges and whatnot are split evenly four ways? Does it permit for service charges and one off maintenance to be paid in advance (usually)?

It doesn't say. Service charges are specified very vaguely but the vendor said, in writing, that there aren't any.

I went round last night to talk to the neighbour (first floor). He said there's no access to loft on his side (presumably why there is no separating wall in the loft) and he's never had any problems with the roof. He was very surprised there's no firewall and seemed eager to find out how to get this fixed. He did say the neighbour downstairs has mentioned the roof before.

He also said the freeholder is hard to get to do things and they always get expensive quotes in. So, I've now decided I'll have a roofer round ASAP to assess the roof. I understand the freeholder's responsibilities but if they drag their heels and want nothing to do with it and/or there is no agreement from all 4 leaseholders to pay for repairs how much I'd have to fork out for urgent repairs and what costs I'd be looking at for the next 3-4 years. I don't want to buy a flat where I might have to get the freeholder to court to repair the roof!

In the meantime, I don't know if the vendor has done any repairs. What's the best way to communicate to him that he's not actually allowed to do any, via the EA or the solicitor?

propertyman

DannyboyMidlands wrote: »

Is it leasehold or share of freehold?

No such thing! He will have a lease even if he in addition jointly owns the freehold :mad:

propertyman

The earlier quote is not a sinking fund it is simply that the freeholder can include in the annual service charge estimate an amount for works that they will propose to do.

This is estimate is due as long as it is fair and reasonable, however before staring works the freeholder is obliged to consult with the leaseholders under section 20 of the landlord and tenant act 1985.

Your solicitor should press the freeholder to answer their enquiries to see what the past annual budgets and accounts are and by comparison to invoices how much the costs are apportioned.

That the vendor says there are no charges is worrying as repairs are needed and at the very least the freeholder should be insuring the building.

If you do not get an answer from the freeholder then give serious consideration to proceeding as your solicitor is unlikely to recommend purchase unless there are proper arrangements for insurance and repairs in place.

You can't simply come to an agreement between yourselves as it's not your roof to work on. there are remedies so let us know in due course if you don't get a reply.

torridonscot

Thank you propertyman!

torridonscot

From what the vendor and the neighbour said it seems that the freeholder is getting repairs done (property recently painted on the outside, well maintained in the common areas) but it's unclear at this stage what the arrangement is. Will definitely press for answers! Thanks!

Fire_Fox

torridonscot wrote: »

It doesn't say. Service charges are specified very vaguely but the vendor said, in writing, that there aren't any.

I went round last night to talk to the neighbour (first floor). He said there's no access to loft on his side (presumably why there is no separating wall in the loft) and he's never had any problems with the roof. He was very surprised there's no firewall and seemed eager to find out how to get this fixed. He did say the neighbour downstairs has mentioned the roof before.

He also said the freeholder is hard to get to do things and they always get expensive quotes in. So, I've now decided I'll have a roofer round ASAP to assess the roof. I understand the freeholder's responsibilities but if they drag their heels and want nothing to do with it and/or there is no agreement from all 4 leaseholders to pay for repairs how much I'd have to fork out for urgent repairs and what costs I'd be looking at for the next 3-4 years. I don't want to buy a flat where I might have to get the freeholder to court to repair the roof!

In the meantime, I don't know if the vendor has done any repairs. What's the best way to communicate to him that he's not actually allowed to do any, via the EA or the solicitor?

Be careful: generally the terms of a long lease are that you cannot make changes to the structure without consent of the freeholder, even urgent repairs. So the long lease doesn't say that maintenance is divided four ways or another percentage? As long as there aren't any common parts/ shared facilities it's fine that there aren't any regular service charges just levies. Yes get a quote, you want that for negotiating with the current leaseholder.

Enforcing things on a reluctant freeholder is a combination of
- knowing your rights and quoting the legislation and your long lease at them
- getting together with your fellow leaseholders
- mediation/ threatening/ going to the LVT (not court, cheap and easier to represent oneself).

Leaseholders can nominate their own contractors during consultation, you don't have to accept his expensive contractor, but do ensure yours has all the right qualifications and memberships and whatnot, you don't want the freeholder dismissing yours on a technicality. You can also get together and manage the building yourself - the freeholder might even be relieved. Note that if the freeholder doesn't consult properly or get special dispensation for an unsafe roof, just uses his expensive contractor you don't have to pay, so don't necessarily remind him of that obligation!

IMO the leaseholders have been silly leaving the roof to degenerate and not addressing the issues with the lazy freeholder, this can devalue flats/ make them less saleable. Your survey may be leverage on the other leaseholders, these same issues will crop up when they are ready to sell.

Again loads on LEASE about getting together with the other leaseholders and about the major works consultation process. Also notes taken at LVTs, so you can see how they pan out and what the outcomes generally are. If you find similar cases you can quote them at the freeholder too. http://www.lease-advice.org/publications/

Fire_Fox

propertyman wrote: »

That the vendor says there are no charges is worrying as repairs are needed and at the very least the freeholder should be insuring the building.

Many places buildings insurance is lumped in with the quarterly/ annual service charge, other places it is billed separately. As far as I can tell from mates and relatives the latter is less common.

torridonscot

Hi Firefox, that's very helpful. I may have missed the bit in the lease about costs split 4 ways although the neighbour suggested that's what they've been doing (the wording on the lease is making my head spin!).

First things first, got to get a quote and assessment on what needs to be done immediately, and over the next 2-3 years. The vendor was stubborn about the price (wouldn't budge below 194k, I offered 192k and 193k initially) so I suspect he won't want to budge at all.

If I pull out now I'll have lost £650 (valuation, survey, mortgage application) plus whatever legal fees happened so far (although I don't think my solicitor is doing anything until he gets the paperwork!). If repairs for the roof (my side) come under that I could swallow that if the vendor is unwilling to drop the price accordingly as it would be cheaper than pulling out and starting over.

Frustratingly, my solicitor is being quite slow at responding to my queries (half answers and "can't advise until we get the paperwork"). Asked them if they could double check with the vendor's solicitor that paperwork is on its way, nothing! Asked them to look at the lease yesterday, heard nothing! Maybe I'm too impatient and this is normal "speed" at which solicitors operate and I should just let them get on with it!

AlexMac

RE the Q ' the absence of firewall is common in Victorian properties like these so... I'm wondering whether this is something I should reasonably expect to pay for from my own pocket if I buy the flat or it's reasonable to ask the vendor to put in?'
Your vendor seems very reasonable and keen to encourage the sale, so you could try to push them further- but that's arguable; it wouldn't cost much, but it might require freeholder consent in that the leases (of three such properties I've had) often specify that the roof void of a property where there are more that one dwelling in a block is not owned by the flat below, but is in theory communal space. In which case, it might just be simpler to do it yourself later?
I once had exactly this experience- lack of dividing walls between lofts in a leasehold property built post-war, so it's not just a feature of older properties. We just quietly installed a stud and plasterboard internal wall between ours and the adjacent flat's loft-space, without even asking the freeholder . This added some fire resistance, but also addressed our other concern about security; in that that it would have been easy for the tenants in the adjacent flat to enter the shared space via their ceiling loft trap and climb through into ours. Doesn't sound like a deal breaker.
Assuming, however from a quick skim of the posts above that you are buying a leasehold (?) it seems surprising that your solicitor didn't see the lease at an early stage as this is a crucial specification of your and the freeholder's rights and liabilities.

Fire_Fox

Legalese is a PITA with no blooming punctuation! It will take longer than a day for the solicitor to look at the long lease, they will want to review it all before commenting.

I don't think you have anything to lose by getting a detailed/ itemised quote from a reputable contractor, if nothing else it might scare the vendor into realising this is going to cost him a mint and/ or kill sale after sale. Especially if you supply snippets from your survey and the quotation to the freeholder and/ or another leaseholder .... Don't rush into asking for a price reduction, but when you do put it in writing stating your reasons why and reiterating your strong position as a buyer.

Also factor into your maths that you don't have quarterly service charges which you would if you were to buy in a larger block. Mine are £1500 or so a year, up north, rubbish block.