Buying a leashold house,- should we just walk away? Advise please.

DoctorRN

glasgowdan wrote: »

Small comfort for not being allowed to park your own van, put up a fence or get a different colour door of your own choosing!

Has the OP even been back to check this thread?

Hi, I have been back on the thread and made a few comments already. Definitely feeling that we should walk away, but my wife really likes the house and wants to get all the information she can before we make a decision. We are waiting for the developer to get back to us on a few things such as what covenants there would be if we purchased the freehold immediately. I have asked for a schedule of everything the company who maintains the site is contracted to do and what is outside their remit. Hopefully, this might give a rough idea of annual service charge. If it is just cutting the grass and changing light bulbs then it should not be as much as if it is maintaining pavements, roads etc. I have also asked for clarification as to whether this service charge involves maintenance of the social housing and the land this is on, and whether they contribute to this charge.

Scarily, yesterday I pointed out to the sales person that a lot of the information she had told me in the past was untrue, such as the service charge being fixed for 10 years. She went away and checked and her response was - "I have learnt somethings I didn't know today". I pity the people who have purchased from her previously, who knows what misinformation they have been given!!!

sparky130a

DoctorRN wrote: »

Hi, I have been back on the thread and made a few comments already. Definitely feeling that we should walk away, but my wife really likes the house and wants to get all the information she can before we make a decision. We are waiting for the developer to get back to us on a few things such as what covenants there would be if we purchased the freehold immediately. I have asked for a schedule of everything the company who maintains the site is contracted to do and what is outside their remit. Hopefully, this might give a rough idea of annual service charge. If it is just cutting the grass and changing light bulbs then it should not be as much as if it is maintaining pavements, roads etc. I have also asked for clarification as to whether this service charge involves maintenance of the social housing and the land this is on, and whether they contribute to this charge.

Scarily, yesterday I pointed out to the sales person that a lot of the information she had told me in the past was untrue, such as the service charge being fixed for 10 years. She went away and checked and her response was - "I have learnt somethings I didn't know today". I pity the people who have purchased from her previously, who knows what misinformation they have been given!!!

My GF would probably like a £500,000 necklace and that's fine.

But given the information you've provided the services charges etc are the least of your worries.

The developer is asking for a blank cheque should you decide to sell in the future... Think about that for a minute...

getmore4less

DoctorRN wrote: »

Scarily, yesterday I pointed out to the sales person that a lot of the information she had told me in the past was untrue, such as the service charge being fixed for 10 years. She went away and checked and her response was - "I have learnt somethings I didn't know today". I pity the people who have purchased from her previously, who knows what misinformation they have been given!!!

Any local group that might want to have a look and can reach out, local paper or radio...

glasgowdan

Yep, I don't think service charges are the main issue here!

DoctorRN

I have now received the freehold transfer document from the developer. This is what it says about selling the property:

"Upon the transfer of the Property or upon the devolution of the legal estate therein howsoever arising the Transferee will immediately give to the Management Company or its solicitors notice in writing thereof with full registration of
such particulars and will pay a reasonable fee but not less than £150.00 plus VAT for the notice and the Management Company covenants with the Transferee that upon receipt of such notice evidence of compliance with the obligations detailed at clause 8.2.4 above and upon payment of any unpaid Service Charge it will give to the person lodging the same a certificate in accordance with clause 8.6"

AnotherJoe

How does that change the numerous conditions and service charges you referred to initially ?
Who defines what "a reasonable figure" is?
What are the obligations in clause 8.2.4 ?

DoctorRN

8.2.4 basically says that you cannot transfer the property without notifying the management company in writing of the intention to do so, and requiring the new owner to enter into a contract with the management company.

What constitutes a "reasonable fee" is the million dollar question. It is effectively agreeing to sign a blank cheque!

getmore4less

That means if you or your wife as joint owners die you have to pay when you take the name off the land registry.

moneyistooshorttomention

"Reasonable fee" indeed:eek:. My definition of "reasonable" would begin - and end - at that £150 plus VAT.

But a poor persons "reasonable" and a rich persons "reasonable" are going to be poles apart.

Right now an amount I would consider "not too bad I guess" would mean :eek: to someone on the Dole and peanuts/not even worth thinking about to a rich person.

HappyRose_2

alex_163163 wrote: »

Yes I had read that was the case.
We are trying to see if we can buy the freehold outright to start with, still waiting for this info to come through so we are in limbo at the moment.

I have had advice from a MSE poster on a different thread that buying a999 year lease that increases in line with RPI isn't actual worth doing, but I need to wait to see if and how much the developer offers it for, if any restrictions are still in place on the freehold, and then do the sums myself to fully understand if that is true.

Make sure you don't end up with a worthless property as many have with leasehold houses. Don't buy.