How do factor fees work?

lifecanbetough4

I am looking at a house in Scotland and the home report says factor fees of £600 per year for gardens.

Do I need to pay this per year? Seems alot

AdrianC

Then don't buy that house.

If you buy that house, then - yes - you will need to pay those fees. I presume the gardens in question are shared as part of an estate or other development?

Socksey

While flats in Scotland are freehold, you will find written into the paperwork that the building has a factor. The factor is usually responsible for organising communal works and maintenance. £600 for the year is not bad, assuming a 1 or 2 bed flat in a non-high-end development. The fee should also cover insurance. It tends not to cover big projects such as window replacement. These can get organised individually or the factor can put it to a vote as to how owners want to proceed.
Some factors are good and some are not so good but I've not heard of anything in Scotland like the freehold management companies in England, which seem to be even more variable. If you buy a flat in Scotland, you will probably have to deal with them.

scottishblondie

It's very common for newer areas to have shared ground that needs to be maintained, so all the houses have to pay towards this. If you buy the house, you will have to pay it.

Gers

scottishblondie wrote: »

It's very common for newer areas to have shared ground that needs to be maintained, so all the houses have to pay towards this. If you buy the house, you will have to pay it.

It''s just very common, not only for newer areas. All tenement blocks will have a factor - don't equate tenement with run down Gorbals type places especially if looking in the west end area. The flats there tend to be enormous with high ceilings, mostly lovely places. Other flats in less heeled areas are still on the larger side though some can be poky. Same as everywhere else, you pays your money and takes your choice.

Generally speaking the first floor flats sell for a premium with the ground floor and the fourth floor usually cheaper. Factors can be a good thing as they arrange for communal repairs, stair washing, buildings insurance etc.

comeandgo

I think what scottishblonde was saying was houses as well as flats have factors to look after shared areas, council no longer does it.

theartfullodger

http://www.govanlc.com/factors.htm
&
http://scotland.shelter.org.uk/get_advice/advice_topics/repairs_and_bad_conditions/repairs_and_maintenance_in_common_areas/property_managers_and_factors

Torry_Quine

Gers wrote: »

It''s just very common, not only for newer areas. All tenement blocks will have a factor - don't equate tenement with run down Gorbals type places especially if looking in the west end area. The flats there tend to be enormous with high ceilings, mostly lovely places. Other flats in less heeled areas are still on the larger side though some can be poky. Same as everywhere else, you pays your money and takes your choice.

Generally speaking the first floor flats sell for a premium with the ground floor and the fourth floor usually cheaper. Factors can be a good thing as they arrange for communal repairs, stair washing, buildings insurance etc.

Not all tenement flats by any means. I have always stayed in a flat and never had a factor to pay.

scottishblondie

comeandgo wrote: »

I think what scottishblonde was saying was houses as well as flats have factors to look after shared areas, council no longer does it.

Yes, thank you, that was exactly what I was meaning as the OP specifically said house rather than flat. Factors fees are not generally something you have to pay in a house in older areas, so people are often surprised when they buy a newer house and are told they have to pay them!

jennifernil

lifecanbetough4 wrote: »

I am looking at a house in Scotland and the home report says factor fees of £600 per year for gardens.

Do I need to pay this per year? Seems alot

If it is a house, £600 per year sounds steep, but will depend on what is being looked after for you.

glasgowdan

Yes factor fees are a normal part of living on a newer estate. The council don't assimilate the roadside green maintenance of new streets. They MAY take on some duties, like enforcing double yellows and street sweeping. I don't enjoy living with factors and it's one of many reasons I'll never buy a wimpey home!