Flat leasehold - dodged a bullet?

Nik3000

Me and my partner recently came close to buying a leasehold flat, but over the last few days we decided to pull out. There were actually two reasons. One was this.

We were informed after getting the lease management pack that these were the fees alone for transferring the lease to us..

Notice/Assignment and charge
210.00
Deed of Covenant
420.00
Share Certificate
180.00
Land Registry restriction consent
252.00

Total
£1,062.00

This alone sent alarm bells ringing, that the management company is fine with ripping people off. I have never seen fees for this so high. Anyone else had this experience?

Not only that, but the seller has been overpaying their service charge by a considerable amount for a number of years and has built up a credit of approx £3000. We were then told by their solicitor that she is expecting us to reimburse it! This was sprung on us a matter of weeks before completion. I'm not sure why they expect us to pay it and haven't approached the management company for a refund.

After these two issues (and others I haven't mentioned) we decided to pull out.

Honestly I'm sure some people have success with leasehold flats but I've been completely put off by it. I wondered if anyone else has had a similar experience and thinks we made the right choice?

Car1980

If you're getting bad vibes, walk away. Sounds like the management co won't give the vendor their 3k back to me.

[Deleted User]

There are so many sharks now in the Freehold / Leasehold worlds and more and more publicity is highlighting them.

It wont be long before a Leasehold tenure is a totally unsaleable tenure.

I have been caught up in an absolute nightmare and I'm sure the above wouldnt have stopped until they bankrupted us, put us in an early grave with the stress or claimed forfeiture of our home.

The very worst problem is there is absolutely no where to turn and the bodies supposed to help are actually run for the benefit of Freeholders .

hazyjo

BBH123 wrote: »

It wont be long before a Leasehold tenure is a totally unsaleable tenure.

In flats in England? Totally disagree. The vast majority are leasehold. Houses, yep, I agree with you - they should be freehold. There's no reason for new build houses to be LH.

eddddy

As you're probably aware, a Freeholder's admin fees can be challenged for 'reasonableness' at a tribunal. But that involves time, hassle and expense.

My view on all property is - 'Does the price reflect the problems?'

In this case, if the price is lower than similar properties, to reflect the potentially high admin costs etc, it might be worth considering.

But if you can get another similar property for the same price, with fewer 'problems' (e.g. a better freeholder), go for that instead.

[Deleted User]

hazyjo wrote: »

In flats in England? Totally disagree. The vast majority are leasehold. Houses, yep, I agree with you - they should be freehold. There's no reason for new build houses to be LH.

I totally disagree, all houses / flats should be common hold.

There is no reason or need for homeowners to be held to ransom by greedy Freeholders / Managing agents.

[Deleted User]

eddddy wrote: »

As you're probably aware, a Freeholder's admin fees can be challenged for 'reasonableness' at a tribunal. But that involves time, hassle and expense.

A Tribunal takes too long as the Managing agents slap CCJ's on you in a spurilous fashion so they can then go straight to your mortgage lender who has no choice but to pay so the Lease isnt forfeited.

eddddy

BBH123 wrote: »

Tribunal takes too long as the Managing agents slap CCJ's on you in a spurilous fashion so they can then go straight to your mortgage lender who has no choice but to pay so the Lease isnt forfeited.

What you have to do is make the payment 'under protest', making it clear that you do not agree with the charge, and then go to the tribunal.

Then there's no basis for the freeholder to get a CCJ or approach your lender.

LEASE can advise on this kind of stuff:
http://www.lease-advice.org/
https://clients.lease-advice.org/appointments.aspx
https://clients.lease-advice.org/

But like I say, it's a hassle and it's time consuming.

......

hazyjo

BBH123 wrote: »

It wont be long before a Leasehold tenure is a totally unsaleable tenure.

BBH123 wrote: »

I totally disagree, all houses / flats should be common hold.

There is no reason or need for homeowners to be held to ransom by greedy Freeholders / Managing agents.

I agree with what you say, but that was not what I replied to above. I am saying that a leasehold flat will not be unsellable in the near future. Yes, there should be a shake-up and flats should be sold under a different tenure. Existing LH flats will not suddenly become unsellable.

[Deleted User]

Personally I think the more problems highlighted the more people will shy away from them.

Rogue Freeholders / Rogue Managing Agents

No effective place to turn for help

Short Leases that are impossibly expensive to extend and if you do extend onerous covenants added.

I think the tide is turning.

steampowered

BBH123 wrote: »

A Tribunal takes too long as the Managing agents slap CCJ's on you in a spurilous fashion so they can then go straight to your mortgage lender who has no choice but to pay so the Lease isnt forfeited.

What a load of nonsense. Nobody can slap a CCJ on someone else willy nilly.

If they want a CCJ, they have to issue a claim form at court. The court then serves the claim on you. You have every opportunity to defend the claim - in which case a judge would consider the claim.

If you don't bother to file a defence, as the court form clearly explains you need to do, you can't complain when the court issues a default judgment against you.