As and when maintenance charges.

Sue11

My daughter and I have seen a flat she likes but when we asked the estate agent how much the maintenance was the agent said it was "as and when" and we do not understand. Can we request details of this in writing. The ground rent is £100 per annum.

G_M

It means that if the roof leaks, they fix it. If the communal hallway appears to need redeorating, they redecorate it. etc.

And you share the cost - as & when.

Having said that - never rely on the EA for this kind of information. Ask the seller, formally, via your & their solicitors (if you are both using one).

Who owns the freehold? Is there a management company?

moneyistooshorttomention

Who decides when its time for this "as and when" maintenance? What process is there for paying for it? Is it a communal decision (ie made in a proper meeting of everyone concerned) - or has A.N. Other Person got the right to just provide a letter stating "This is what will be done/when it will be done/and it will cost £x 0p" and redress for an unreasonably high charge etc would be via a Small Claims Court?

jbainbridge

If it is 'as and when' you would still be wise to set aside some money each month to cover possible issues.

kleapatra

I live in a leasehold property that has as and when maintenance charges - in a decade that has totalled £160. The freeholder decides what needs doing

bouicca21

The management company for mine works on as and when, though there are regular charges for cleaning the communal areas and mowing the lawn. When I questioned the lack of a sinking fund the agent said the property was well built and didn't really need one.

carefullycautious

There was a neighbour from Hell programme on recently that showed a GF flat that owned the free hold. The guy appeared to be doing maintenance work when he wanted to and was not giving adequate notice so just appeared on a ladder looking through the upstairs neighbours window. It was causing so many problems.


As and when should work in theory if both sides are in agreement with the quotes obtained and given plenty of notice when works are going to be done just don't think its a given.

eddddy

There is a massive amount of legislation on this topic - but assuming the lease is a typical one:

- The freeholder has a duty to maintain and repair the building. They will decide what needs doing and when.

- The cost will be shared between leaseholders. If it comes to more than £250 each, the freeholder must do a Major Works 'Section 20' consultation with the leaseholders.


So... consider getting a survey.

For example, if the roof needs replacing, the freeholder will have to replace it, but your daughter will have to pay her share. (e.g. if it's 3 flats in a converted house, she might have to pay one third of the cost). The lease will give details.


There's lots of explanation and advice here: http://www.lease-advice.org/

Don't expect a completely fixed maintenance/repairs charge for any leasehold flat - any costs will always be shared amongst leaseholders.

But some flats build up a 'sinking fund' (a bit like a 'savings account'). Leaseholders pay in some money each year, and when repairs are needed, the freeholder uses the 'sinking fund' - but may have to ask the leasholders for more, if the fund doesn't have enough cash.

moneyistooshorttomention

I would think that the things to watch out for here would be:

- if there was a sinking fund then those paying into it would need to know how this fund was safeguarded against personal "dipping into"/bankruptcy/etc by the holder of said fund

- if there isn't a sinking fund (ie that "as and when" basis) how those subject to this way of working could actually manage to put money to one side "just in case" they were asked for some money for something without that set-aside money counting towards that £6,000 limit that is all that is allowed for savings to anyone having to claim unemployment benefit for instance??

I know, in that situation, it would be all well and good for me to think "Right - I'll put to one side, say, £2,000 just in case I'm officially notified there will be one of those 'as and when' repairs" and I would be wondering how on earth I could put that money to one side in a way that the DWP wouldn't count as being part of that allowed £6k savings if I got made unemployed (ie I could only have £4k savings of my own iyswim if there wasn't a way to "designate" that £2k as "Not My Savings").

davidmcn

moneyistooshorttomention wrote: »

I would think that the things to watch out for here would be:

- if there isn't a sinking fund (ie that "as and when" basis) how those subject to this way of working could actually manage to put money to one side "just in case" they were asked for some money for something without that set-aside money counting towards that £6,000 limit that is all that is allowed for savings to anyone having to claim unemployment benefit for instance??

I know, in that situation, it would be all well and good for me to think "Right - I'll put to one side, say, £2,000 just in case I'm officially notified there will be one of those 'as and when' repairs" and I would be wondering how on earth I could put that money to one side in a way that the DWP wouldn't count as being part of that allowed £6k savings if I got made unemployed (ie I could only have £4k savings of my own iyswim if there wasn't a way to "designate" that £2k as "Not My Savings").

You can't, it's still your savings. You'd have the same issue if you owned a house and were putting money aside for potential maintenance costs.

moneyistooshorttomention

davidmcn wrote: »

You can't, it's still your savings. You'd have the same issue if you owned a house and were putting money aside for potential maintenance costs.

Which is a very valid point.... but maintenance of own house is something that is under control of OP and she could just decide "Blow it" and take her chances and think "All money put to one side for that does count as part of my savings".

But - maintenance of somewhere not "under her control" is rather a different kettle of fish. Other people (eg the freeholder) that are not "under her control" could make decisions that involve her and she would need savings that are - basically speaking - nothing to do with her iyswim.

I know my own personal take (which may or may not be typical of a house-owner) is "I will deliberately put money to one side for Upkeep - IF there is spare money available I am wondering what to do with. Otherwise I will just keep fingers crossed It Wont Happen" iyswim". Probably a fairly typical outlook - and the reason why most of us will have literally NO money put to one side "just in case" on our own personal homes - but would have to change our practice on that if in same situation as OP for instance.