Leasehold Flats Apartments

sheilarichardsuk

Hey All

I've a niggling thought thats been on my mind for sometime now and thought I would get some others thoughts.

I owned a new built apartment which I managed to get before the burst of the bubble ..... also managed to get lucky and come into some money so decided I would sell my apartment. When the valuation came back believe me I was so surprised with the value it had lost but wanted rid as I didn't need and becoming a landlord had no need.

Of those that viewed, none were first time / second time buyers .... all were investors looking to make there next big kill. It sold to an investor for less than it was put on the market for.

What struck me though was that even the investors were totally put off when asking about the service charge, which was £85 when I left. Now if investors were put off by service charge, surely first time / second time buyers would also be put off. When I bought, the house builder paid the service charge or did the cleaning so I had no idea what it would cost and when I did have to start paying it, it crippled me what on top of my mortgage and other payments each month.

I keep reading about people who cant sell with being in negative equity deciding instead to rent out but surely by the time prices pick up which I've read as nearly fifteen to twenty more years, service charge costs are going to be almost double with inflation and if not double still so much more than they are in 2013. Will people really want to buy an apartment with extra costs - I wouldn't I know that.

I also did some other research (and London doesent count here and it doesent really reflect on the UK as a whole) and havent come across anyone buying an apartment for the same price it was originally bought for or even say £20k lower than price paid (which I've seen a lot off). No I have only seen similar to mine sold, nearly £40k less and I'm imagining a lot of these would have been repossessions.

So whats your thoughts? Would love to hear from people living in apartments now. Those in negative equity who have tried to sell. Those who have/had their flat/apartment up for sale, did you get any real buyer interest or just investors?

I really think that in a couple of years this will become a major issue , the next big con thats slowly exposes as people find that even though the market has picked up they still cant sell their apartments. I really really feel for this.

G_M

An £85 service charge does not seem much.

https://forums.moneysavingexpert.com/discussion/4709703

NervousHomeowner

Personally, an £85 service charge seems reasonable to me, but I guess it depends where you are and how much other service charges are in your area. We are just about to purchase a 2 bed flat and our service charge works out at roughly £70pcm. Most of the flats we viewed had a service charge of £80-£100pcm.

At the end of the day, I'd rather pay a higher service charge and have some of that go into a sink fund than pay a minimal amount but have to cough up £10,000 if the roof needs re-doing!

With regards to selling a flat, the lady we are buying our flat from bought it for £124,000 in 2009 and is currently selling it for £122,00. So yes she has made a loss but only a minimal one. Really, it depends on your property, how much you bought it for and the area you are selling in. Where we are, a flat in the right area can sell very quickly for a fairly good price.

hellokitty08

I sort of see where you are coming from. Where I live there has been a massive increase in the amount of flats built and I would say easily 80%, sometimes more, are brought by investors (especially on the re-sale market). After approx 5 years they really start to go down hill and some of them have lots £00,000 off their original selling price.

Personally I dont know why anyone would buy one.

FlyingDonkeys

Nervous HomeOwner: Yeah it does seem odd.

Some Buy- to Let owners seem able to get their service charge taken off tax bill or do they just charge tenants for it?Massive service charges are raising rents. Not sure why this serious overcharging is not viewed as fraud.

The law completely messed up here as no procedure to easily check and dispute charges and every incentive exists for sleazy managing agents or freeholders to pad bills. Just came across this film on youtube which explains the madness out there needs to be addressed.