Buying the freehold to 4 flats - only 1 flat wants to buy

divadee

Stuart788 wrote: »

If they really can't afford it how do you know they'll be able to pay you?

Sorry I don't think I understand what you mean! Pay us for what? They already currently pay all the service charges and ground rent through the property management company. So In effect nothing will actually change for them at all.

If you mean for lease extensions then they don't have the lease extension do they?

divadee

enginesuck wrote: »

Buy it, get a solicitor to make sure its all above board, don't worry about the Moral side of it, if you want to be moral just charge a fair amount to your leaseholders. You have a fortunate opportunity seize it ! You know someone else will if you don't.

Thanks. We honestly don't think the moral side is even a thing. The current freeholders have lived here happily for over 10 years and only moved due to relocating for work. The neighbours all got on really well and one of them said to us that they would miss the old neighbours as they were so lovely.

I think it makes a difference that a management company does all the admin and chasing for money. It's not like we go banging on their doors asking for the ground rent and service charges!!

Mgman1965

As long as your solicitor ok's it, go for it, if not, you'll rue the day when some shark management company buys it and doubles/triples your charges overnight and then let's the building go to rack and ruin from lack of maintenance to add insult to injury.

Look through these boards about how some dodgy management companies work, it's quite frightening.

divadee

Mgman1965 wrote: »

As long as your solicitor ok's it, go for it, if not, you'll rue the day when some shark management company buys it and doubles/triples your charges overnight and then let's the building go to rack and ruin from lack of maintenance to add insult to injury.

Look through these boards about how some dodgy management companies work, it's quite frightening.

That's our concern. We want to keep the service charges to a minimum as much as possible. To be honest I think that serves all leaseholders. It's getting that balance of enough service charge to keep the block (converted Victorian manor lodge) in a lovely condition which it is now and not making money out of it.

Yes we want the investment to eventually pay for itself with the purchase of lease extensions but we aren't out to screw any of the neighbours!!

marksoton

divadee wrote: »

I honestly just think they want it gone and are actually being nice rather than selling it to some freehold company that will screw us over on service charges etc....

No. They want cash.

divadee

marksoton wrote: »

No. They want cash.

Well obviously that. And they have been upfront about that. But, they could of sold to any dodgy management company and not cared what they did to any of the leaseholders. So for that part they are being nice.

G_M

I don't understand this "Beware alienating the neighbours" line of thought.

* the neighbours have been offered a share and declined.
* they currently pay a freeholder (via company) for their services etc
* if OP buys, the neighbours will continue to pay a (new) freeholder (via company) for those same services

Provided the OP acts fairly (responds to reasonable repairing requests; doesn't rip them off over pricing) why should the neighbours be alienated?

Poppy9

I would buy it like a shot. How much is the service charge each flat pays annually.

My only question to them would be is there any structural issues that need immediate attention that will cost the leaseholders serious money in the near future. Is this why they are selling freehold as they don't want aggro.

divadee

G_M wrote: »

I don't understand this "Beware alienating the neighbours" line of thought.

* the neighbours have been offered a share and declined.
* they currently pay a freeholder (via company) for their services etc
* if OP buys, the neighbours will continue to pay a (new) freeholder (via company) for those same services

Provided the OP acts fairly (responds to reasonable repairing requests; doesn't rip them off over pricing) why should the neighbours be alienated?

Thanks GM. The current freeholders lived here for over 10 years happily and one neighbour has said to us how much she will miss them as they were lovely.

We have no reason to rip them off over service charges as we too have to pay the service charge!!!

And as for annoying them for the price of a lease extension they would have to pay that no matter who bought the freehold. It's a set formula to charge so we can't charge whatever we want so again I don't think that will annoy them.

It's a big commitment for us, and we are learning all the pitfalls and positives slowly. But we just want to have the control of what happens to our home.

divadee

Poppy9 wrote: »

I would buy it like a shot. How much is the service charge each flat pays annually.

My only question to them would be is there any structural issues that need immediate attention that will cost the leaseholders serious money in the near future. Is this why they are selling freehold as they don't want aggro.

The service charge at the moment is approx £1100 per flat. £50 ground rent per flat.

We had a full structural survey when purchasing. And we also went through the management company accounts for the past 5 years so everything seems above board. Nothing came up in the survey. The roof is all sound, no cracks or movement detected etc...