Reasonable information to ask prior to offer on Leasehold flat?

calmstellar

Hi folks. I'm viewing properties for my first purchase at the moment. One which I'm considering making an offer on is a flat in a block of around 40 flats, in London. It's leasehold, with a share of freehold.

The agent answered some specific questions I had - for instance no, I can't move internal walls (I was surprised that was a straight no - I thought it would be possible, with permission). Rather than guessing of other things that might be surprising, I asked the agent for details on the leasehold agreement and any restricted covenants, but they've said:

"Most of the questions that you have asked will be supplied by the freeholder to the vendors solicitors in the lease hold pack (this is supplied by the freeholder). This will be supplied to your solicitor and they will liaise with each other with enquires."

I'd like to see the major points prior to making an offer and involving my solicitor. Am I being unrealistic here? What information would you insist on prior to making an offer?

Thanks!

J

mije1983

Ground rent, service charge and time left on lease would be right up there for me.The EA really should have that information even if it is only 'what the vendor has told us'.

HouseBuyer77

To get a full summary of major points you'll need to read the lease. Asking for a copy of the lease would be fairly reasonable (current owner should have a copy they can give you). However interpreting it or fully understand the consequences of the things it says may require a solicitor.

The EA isn't qualified to give an opinion on such things so can't give you the information you need. Similarly the vendor may be willing to tell you what they know, but they could be wrong/misinformed.

I can't move internal walls (I was surprised that was a straight no - I thought it would be possible, with permission)

This does surprise me slightly. Could be a good example of why you shouldn't ask the EA such questions as they'll just give wrong information.

eddddy

calmstellar wrote: »

for instance no, I can't move internal walls (I was surprised that was a straight no - I thought it would be possible, with permission).

What sort of thing do you mean by "move internal walls"?

It's generally people with money to burn who buy flats and then move the internal walls. (For example, in prestigious areas of central London.)

If I were the EA, and it sounded like you wanted to make an offer "subject to being able to move internal walls", I might discourage you from offering. It would delay the process, and when you realise the complexities and cost, you might well back out anyway.

It might be better to find a flat with a room layout that's more suitable for you.

anselld

You can get a copy of the Lease from Land Registry by submitting form OC2 with a fee of £7.

It doesn't really help greatly for things which you need permission though because it is not usually practical to establish such permissions prior to exchange.

AlexMac

I'm biased towards so-called "shared freeholds" where the leaseholders collectively own the block, and therefore have more control, even if they have handed day-to day-management over to an agent, but this tends not to be the case with newer or larger developments.

I've been lucky enough to own three such shared freeholds; as is usual, owned by a Limited Company made up of the individual owner/leaseholders as Directors or Company members. All three were conversions with between 6-12 flats, and all 3 with DIY or self-management; insurances, maintenance, asbestos surveys, Companies House returns and sinking fund, etc being handled by the owner/Directors .

That way, our annual service charges were about half those of managed blocks where you are paying for agents, surveyors and accountants... My service charges have ranged from £420 p.a. - £1.3k p.a. whereas £3k p.a. is common and I have mates who pay £5k p.a. (which is 4 times more than my mortgage!).

So, to answer your "what is reasonable" Q, even before I offer or instruct a solicitorI always ask
- Who is the freeholder;
- how much is is the Service Charge;
- does that include a "sinking fund" contribution (towards a kitty for future cyclical maintenance or major repairs)

Trouble is, the average Estate Agent is so clueless they don't routinely ask this of vendors (or won't trust their replies). Some (such as the ones I last bought from) are excellent, but they are the exception.

And as someone above says, the only definitive answers will come when your solicitor asks; ditto Q's about planned major work and future 1-off repair costs, and any restrictions in the lease (e/g/ the usual "no building or structural work without freeholder permission" or "no short term or holiday less than a 6-month+ AST".

By which time you'll have had to get an offer accepted, committed to a few hundred quid in legal costs, wasted several weeks and fallen in love with the flat!

So ask these reasonable Qs,but do your own research pronto; the Land Registry, as above, and Google. I discovered from Google that one flat I was thinking of offering on had been the subject of an angry and failed "Right to Manage" dispute between residents and the Freeholder, who had fought off the residents' attempts in Court to take control. I walked away. I also check Companies House, or just ring the freehold agent myself. I did that too on the dodgy one; they told me to P 1 55 off!

So ask, be persistent, and do your own due diligence!

AlexMac

Just noticed that the block you refer to is a shared freehold- but as it's quite large, presumably has a managing agent? However, as soon as you identify the name of the freehold Company, check its Directors' names and addresses on https://beta.companieshouse.gov.uk/ and if they live in the block, knock and introduce yourself...

G_M

Unlikely the EA will know many of these details, and the answers they do provide should not be relied on.

There are 2 sources of info

* the lease. Pay £7 to the Land registry

* existing residents. Knock on doors. Always wise to talk to neghbours anyway as they'll moan away about the noise, the toothless residents association run by a caucus, the drug addicts in the bicycle shed, the money-grabbnig management company etc etc.....