Lazy landlord for block of flats

Pagw

Hi, I'm in the process of buying a leasehold flat - it's my first purchase. I had an offer accepted 3 months ago, but the process is being held up by the freeholder and manager (same person) who is not responding to queries. They sent some responses a month ago, but my solicitor says they were not detailed enough and he has not responded to more enquiries since then.

My understanding is that the current landlord took control about 2 years ago, and is a relative of the previous landlords who were the builders. My solicitor says that according to the seller's solicitor, the freeholder doesn't seem to know the details of the building.

Everything else about the property is nice, but this makes me concerned that it could be difficult to sell the place later if the freeholder does not get more organised. Also there seems to be a risk that they will not take care of maintaining the building.

There has been one flat sale in the block since this person took over - it took about 3 months from listing to completion. So it is not impossible to get a sale through - but I don't know how stringent that buyer was with getting information from the landlord. The property is in good shape at the moment, but being fairly new it probably hasn't required much maintenance so far, and problems could develop over time.

Being inexperienced, I don't know how serious a problem this is. Has anyone else been in a similar position of buying a fairly new flat but with a lazy/busy landlord? If you were in my position, would you feel like pulling out of the purchase? What proportion of blocks of flats have similar problems? If the landlord was not doing his job, a solution could be forming a "Right to Manage" company to take over - has anyone done this and how painful a process is it (this block has 15 flats)?

cattie

I would walk away from any property that had a lazy or not interested freeholder.

Leasehold works exceptionally well when the freeholder/managing agents are active in getting any problems sorted, but I would imagine it could be a nightmare trying to get essential works or repairs carried out with a bad freeholder.

I've owned a few flats in my time, but fortunately, all have had good & responsive freeholders.

With blocks, I believe at least two thirds of leaseholders have to agree to purchasing the freehold before this type of action could go ahead.

Have a look here for full info regarding right to manage & any issue regarding residential leasehold property. http://www.lease-advice.org/
It's a government funded agency.

Pagw

Thanks for the reply cattie. I think I should have added that there was a buyer before me, who walked away after a few months. The estate agent obviously did not give details about why, but possibly it was because of the freeholder again - this would indicate that it could be a difficult place to sell.

chris_aaaaa

I would be wary that the details you are not getting is a pending major works bill. You could get landed with a large bill that has completed consultation and is immediately due.

You need to ensure that the vendor clears all invoiced charges and tells you of any sections 20's in consultation.


Find out if the flat has built up a reserve, the vendor cannot take it out and you have to make sure it passes thru to the benefit of your flat.

Google around leasehold issues and understand what you are getting into.

propertyman

Well as you can see it not world ending and its matter of seeing whether
-you want to take on control of building
-as opposed to a well run building where you might prefer a little more control or
-you are happy to pay up and get on with a busy life.

whatever you do do read my sticky on buying a flat
https://forums.moneysavingexpert.com/discussion/4754355