Really need advice regarding leasehold concerns

bully36

Good morning all,

Me and my partner have been together for two and a half years and are engaged, but i have been staying between my mothers home and hers (due to work).

My partner lives in a council maisonette rented from Thurrock council, and has lived there for 7 years. We was thinking of right to buy, as there is no way we can afford to buy privately, we both are on min wage currently.

From what i have read on the Thurrock website it suggest that the rent is £10 a year, but my major concern is of these horror stories of huge sudden repair bills popping up through service charges, ie roof need repairing etc, and this is scaring me to be honest. I've heard of bills into the tens of thousands as well.

So How often do these things happen?, and would you advise against a leasehold property?.

Also would i be able to apply for a mortgage with her (half each), or would only she be able to ashe is on the rent book?.

Please don't flame me for right to buy as i don't want to enter an argument against it. I can understand people are against it but I just want some security for me, my partner and child. The current housing situation is just ridiculous and this is something i was looking into, but i wanted to know the pit falls.

Thank you very kindly for your advice and input, it is very much appreciated!.

PlutoinCapricorn

Do you know how old the property is? Do you know any neighbours who have bought?

Person_one

If you're planning to remain living in the property, why not just keep renting it for now? Then there's no chance of being hit with a big maintenance bill, and you could look again at RTB a few years down the line if your financial situation changes.

Home ownership is stressful on a low income (I know, I've done it!) as is private renting. There's a reason why council houses were designed to be secure housing for working people on low pay, they're a great solution!

G_M

As with buying any property where you will be financially responsible for repairs, you have to assess the condition of the property.

Yes, with a leasehold, you are in the hands of the freholder as to when, and to a lesser extent how much, this hapens.

And councils do have a reputation of being at the top end of costs, though you can challange excessive costs.

So 2 things:

1) read the lease carefully to see exactly what you will be responsible for (ie generalised shared repairs/maintenance to a whole block or just specific costs of the property)

2) assess the condition, either yourself or via a surveyor

As it is your partner who is the council tenant, she is the one who will have to buy under the right to buy scheme. So both the Title and mortgage will have to be in her name.

If you married (and joint property purchase is more of a commitment than mariage!), you could buy.mortgage jointly I imagine.

[Deleted User]

https://www.thurrock.gov.uk/council-leaseholders/being-council-leaseholder
https://www.thurrock.gov.uk/buying-your-council-home/your-right-to-buy

As a council leaseholder you'll have:
1- ground rent (which may be £10 pa),
2- service charge for anything communal if you are in a block or an estate, normally includes gardening, cleaning and maintenance of communal areas, and buildings insurance (mine is £1400 in a block with no lift on an estate in London).
3- charges for major works, such as a new roof. There's a procedure they have to go through before any charges are made, so you do at least get some notice. There may be some payment plans available to spread the cost - but this varies by council.

If your partner applies for RTB, she'll get info on how much the recent service charges have been, and whether there are any planned works coming up. The other way to find this out without starting the application is to ask neighbours who are leaseholders.

[Deleted User]

Person_one wrote: »

If you're planning to remain living in the property, why not just keep renting it for now? Then there's no chance of being hit with a big maintenance bill, and you could look again at RTB a few years down the line if your financial situation changes.

Another reason to sit tight, and RTB later:

http://www.thurrockgazette.co.uk/news/10468480.__65million_council_housing_revamp_set_to_begin_in_the_borough/?ref=rss

When they do the revamps it will be internals for council homes, and externals for council and leaseholders. Leaseholders will have to pay.

bully36

Wow thanks for your responses you've all been a great help!. I suppose the main worry regarding security was even though my partner has been under Thurrock council for eight years in this place and as far as i know another 3 years in her last, that a council tenancy is not for good and that they can kick you out on a whim.

She has never been in arrears either. I am hoping that soon i can try and get into i.t as i have been reparing and working with computers in my spare time for years. Hopefully this can improve my situation financially, otherwise having a council property to rent is a godsend, providing we don't lose it.

We would never be able to afford privately rented as we really don't want to claim housing benefit and pay our own way.

This leasehold business really doesn't sound to secure to me, but most new build these days seem to be flats!.

Person_one

Council tenancies are as close to 'for good' as any kind of housing can be! Far more secure than a mortgage.

Housing benefit is there for people who can't afford to 'pay their own way' because everybody deserves a home no matter how little money they have. Don't let daft ideas about pride and 'paying your own way' stop you from claiming if you are entitled. This country needs low earners just as it much as it needs high-flyers.

bully36

Thank you person_one. We struggle as we've had hours cut but we get by.

God knows how people are going to cope when they have their tax-credits taken next year, and they privately rent. It really does anger me when the tories say they want to look after 'hard workers'.

I was mainly looking into rtb as i thought maybe this would be more secure, but it doesn't appear so, due to it being leasehold.

Thanks again for your help!.

AdrianC

Bully - you say it's a "maisonette" - how does it fit into the larger building? Is it half of it? Part of a much larger building?

Somebody always has to pay to maintain the fabric of the building. If you own the whole house, then that's you, 100%. If you rent, then it's your landlord. The mid-ground, where you own part of a larger building, is where leases come in to it. It wouldn't be practicable to say "Well, you own a quarter of that corridor, and an eighth of the roof", so somebody - the freeholder - owns the actual building, and individual leaseholders own a flat (or maisonette - whatever) within it. You, as a leaseholder, will get handed a bill for looking after your share of the whole building.

Anything that goes wrong in the property, it's much simpler. If you rent, the landlord pays. If you own, you pay. The boiler's sulking? The oven's died? Credit card time. Mortgage going up? Oh, dear.

Sometimes you'll see "share of freehold" - there's still a freeholder, it's just that it's a company which you own a chunk of, so get a say in what's done when. It doesn't necessarily mean that you'll pay any less - if something needs doing, it needs doing.

Sounds like you're the people RtB was intended for - not those who want to "help their aged, sick parents" by buying their flat for a huge discount - but you need to be aware of the realities of property ownership. If you want security and ease of budgeting, a council tenancy is as good as you're going to get.

princeofpounds

God knows how people are going to cope when they have their tax-credits taken next year, and they privately rent. It really does anger me when the tories say they want to look after 'hard workers'.

The tax credit bill has been spiralling out of control, and they are being increasingly abused. From zero in 2001, within 3-4 years from now, they would be 10% of the entire government budget. Bigger than defence, twice the transport, housing or policing budgets, about 40% of the entire NHS. It has became a monster.


Furthermore, given that the government have almost doubled the tax-free allowance since 2010 (a much better way of making employment pay more without subsidising it), and have now committed to a steep rise in the minimum wage, I think it is harsh to judge them entirely on removing tax credits.


The higher tax free allowance has delivered £820p.a. to every worker in the country out of the 30-odd million of them who earn minimum wage and work full time. The removal of tax credits takes about £1300 away from the 3m households who qualify for them.