Unreasonable "Reasonable Charges" - Flat Leasehold

Mat_Lock

Hi

In the last 24 hours I have found out that the leasehold landlords agents are expecting me to pay fees to the sum of £720 for notice of transfer on the lease when I am buying the flat

Notice Fee - Charge £300
Notice Fee - Assignment £300
Issue Deed of Covenant £120

Is this reasonable fees. I really don't think it is. Judging from the company website it's just an estate agents, typically overcharging for some paperwork?

Guest101

The seller should be paying these....

G_M

Guest101 wrote: »

The seller should be paying these....

Really?

it is the buyer who wants his new interest in the property assigned.....

(But it's a long time since I bought leasehold)

I'd be more concerned about the future; if the management company is this expensive, what will there annual fee be out of the service charge? What other exhorbitant charges may arise? :eek:

chris_m

G_M wrote: »

Really?
it is the buyer who wants his new interest in the property assigned.....

Then again, it's the seller who wants his interest in, and liabilities for, it de-assigned ;-)

Guest101

G_M wrote: »

Really?

it is the buyer who wants his new interest in the property assigned.....

(But it's a long time since I bought leasehold)

I'd be more concerned about the future; if the management company is this expensive, what will there annual fee be out of the service charge? What other exhorbitant charges may arise? :eek:

I suppose I jumped the gun, but when i've dealt with Leaseholds (ditto, over 12 years ago) the seller was responsible for the fees. However this was multiple leasehold properties with the same management company (and equally they might've charged both parties). So I guess it varies.

What does the lease say? Will you pay now and again when you sell?

Mat_Lock

I am beginning to wonder if buying is a sensible option. The fees, the monthly charges. Starting to feel sick

G_M

Mat_Lock wrote: »

I am beginning to wonder if buying is a sensible option. The fees, the monthly charges. Starting to feel sick

It's fine so long as you know what you are getting into:

* what are the monthly or annual service charges?
* what do they include/exclude?
* how efficient is the management company?
* Is the building well maintained in return for those charges? Communal areas cleane? Gardens tidy? Structure sound?
* are there any major works planned/needed? If yes, is there a sinking fund to cover the cost or will a bill be coming your way next year.....?
* how efficient/expensive is the management company?
* What ground rent is payable?
* are there other 'fees'? If so, for what and how much?

Have you knocked on the neighbours doors yet? They will tell you a lot more about the building than the seller will!!

Conrad

Then walk away.
There is no rule in terms of who should pay. Sometimes vendors will, other times buyers. I would think the property you want would be in high demand in the current market, another buyer wont flinch at the fees perhaps.


I've bought a few flats and pay such fees, never occurred to me I was being tret unfairly. I'm sure you demand your own fees (wages) that others might think are extortionate. Tis the way of things.


Posters that automatically come down on your side are pointless. Akin to those that feel kinship with a divorcing Husband without hearing the wifes side of it.

Mat_Lock

I wasn't really disputing who should pay. I can see why there are fees however £720 is very very expensive and was something I was not made aware of until yesterday, 2 months after initially setting plans in to place.

Richard_Webster

The fees are clearly unreasonable - so you need to think whether you want to buy a flat where these partiuclar managing agents are involved. They will no doubt make other unreasonable charges when you come to sell or remortgage.

When you eventually sell you will not want your buyers knowin that you had a dsipute with these people - that will put them off!

You can challenge the fees but unless you do it yourself the legal costs/fees invovled will be more than any saving you will make. They know this. Also you will have to reveal this when you sell.

I would Google the name of the managing ganets (sorry typo! - I mean agents) and you may find some adverse comments about them in forums such as this. If you buy another flat try to find out and investigate the managing agents/freeholders before you proceed too far.