What questions should we ask about the lease

set

Hi

We have had an offer accepted on a flat and had mortgage approved.

I'm starting to write down questions regarding the lease, we haven't seen it yet but will be asking our solicitor on Monday for a copy.

There are 27 flats and Each flat owns part of it (ltd company). We know that the lease is 999 from 1981, and service charge goes up about £100 per year (currently £1300)

The questions I have so far are:

Are there any major works planned
Any restrictions on what flooring can be used
Who is responsible for windows (I'm assuming mwe are for minor repair)
It's top floor with two skylights so need to double check that that comes under roof repairs

Mind has gone blank and can't think of anything else.

We wanted to check about sky TV as no dishes outside properties except for a dish at the back that has dash written on it.

We also know that you can't have pets and cannot sub-let flat which we are happy about.

Anything else? I'm trying to think of most things so I don't have to keep going back to solicitor every time I remember something.

EDIT: forgot to add that building has two lifts which were replaced last year and roof has been done the year before I think. Dont know about Windows.

Thanks guys

csgohan4

so after 10 years, your Service charge goes up by 1000 pounds in total on top of the 1300 your paying already??


Walk away, your missing the biggest problem of leases, service charges and ground rent.

davidmcn

Did your offer reflect all of this? In particular the prohibition against sub-letting will restrict the market value.

set

Thanks for your reply. Sorry my mistake I thought that it went up £100 per year, just checked old list on rightmove and service charge was £1200 in 2012 and is now £1300. Will check what increments it goes up by with solicitor.

We have been in rented for 15 years and don't want a flat that can be sublet. Price has been reduced by £10k a couple of months ago as elderly lady wants to go into retirement complex. We are paying £89k for flat.

eddddy

set wrote: »

The questions I have so far are:

Are there any major works planned
Any restrictions on what flooring can be used
Who is responsible for windows (I'm assuming mwe are for minor repair)
It's top floor with two skylights so need to double check that that comes under roof repairs

All that kind of info should be given to you routinely - it's in the lease and/or leaseholder information pack.

(So maybe read those thoroughly before asking any questions.)

set wrote: »

Sorry my mistake I thought that it went up £100 per year, just checked old list on rightmove and service charge was £1200 in 2012 and is now £1300. Will check what increments it goes up by with solicitor.

Service charges don't really work like that.

They are based on the cost of maintaining the building.

e.g.
If the common parts were repainted in 2015, the service charge might be high that year.
If very little maintenance/repairs were needed in 2016, the service charge might be lower.

However, it will probably also include a fee paid to the managing agent for managing everything. They should charge roughly the 'current market rate' for their services (like a solicitor or accountant would).

If leaseholders think the fee is unreasonable (e.g. They are charging much more than other managing agents), they can challenge it.

always_sunny

Can you get a copy of the lease? You're going to get one before exchanging but you might get emotionally involved by then.
Check/ask for restriction to update/redecorate the flat (i.e. consent to do anything)
Can you let the property if you wish so
What can you change and what you cannot,

£1300 for SC is really high! I don't know where it's the flat and what services the building may offer but do bear in mind that it may put off future buyers. £89k for the flat, even with a small deposit you'd be paying £400/month for a mortgage. SC is few months worth! Madness...

davidmcn

always_sunny wrote: »

£1300 for SC is really high! I don't know where it's the flat and what services the building may offer

The OP has already mentioned two lifts - they need regular checks/maintenance/electricity/phone line etc, so will always bump up the service charge.

set

Thanks for your replies. weve been in rented for 15 years and have been very happy. Nice street and neighbours but can't control other people in the building. Don't get me wrong we really like our little flat but this one came up literally round the corner Last year and then in January reduced by £10k (elderly lady needs assistance so will be move to assisted living) so we thought we'd have a look and really liked it. We did our sums and it iaffordable even if going up to 10/11% as pointed our in illustration.

Subletting not a problem for us, I appreciate it may reduce interest if we sell. Were early 40's so not really looking to sell or move to bigger place. However things happen and we did take that into consideration. Most properties where we live are converted Victorian houses (as is the one we are in now) sound proofing non existent, and we have looked at some of this for sale and although the service charge may seem high, the Victorian conversions we looked at say that maintenance shared between the two or three flats as and when needed. I'm uncomfortable with that and would rather have service charge in place.

I will hopefully get the lease early next week and comb through it.

Thanks for your replies

Slithery

set wrote: »

the Victorian conversions we looked at say that maintenance shared between the two or three flats as and when needed. I'm uncomfortable with that and would rather have service charge in place.

Paying a fixed service charge doesn't mean there will be no other costs, you will still have to pay for major works if/when they arise if there isn't enough money in the sinking fund to cover them.

set

Thanks for your reply. Yes they have just had two new lifts and roof done. The cost of the lift per flat was £2k but no extra for roof. We will have a maintenance account and put some money in every month just in case. But as the lifts have been replaced just las year that one major expense out of the way for a while. But will definitely put money away just in case