Flat leasehold - dodged a bullet?

Nik3000

We were informed by our solicitor about potentially bringing them to tribunal but he said we'd have to complete first and have the money ready incase we're not successful.

To be honest buying our first home we don't want this hassle straight away, it doesn't exactly make us feel confident about a future under this management. Not to mention the £3000 the current owner demanded.

Unfortunately we can't afford many houses in our area so looks like it's back to saving mode. Can't see us looking at leasehold again.

katejo

Nik3000 wrote: »

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?

I don't blame you! I didn't have to pay charges like these when I bought my leasehold flat but i had various other headaches while there. eg. a freeholder/managing agent who refused to provide proof of building insurance even thought my mortgage lender required me to have it. Luckily I escaped 11 years ago. My brother is currently downsizing from a house to a flat. I tried to persuade him against it and warned him about potential problems but he is about to complete.

eddddy

Or you could say to the EA that you will only proceed if the seller pays the £1k admin charges, and agrees not to charge you the extra £3k.

(Giving you a free £3k 'in the bank' against future service charge bills.)

But maybe even that wouldn't be enough to persuade you anyway...

Nik3000

But maybe even that wouldn't be enough to persuade you anyway...

Probably not as this point. But I do see why you'd suggest it.

Honestly though I doubt the vendor would budge now as I do feel the management company will not refund them. I see no other reason they would risk asking us and risk the sale.

Not to mention when we went for the place we originally has a higher offer accepted. Our lendor valued it 6 grand less so we went back and they refused the lower offer. Then eventually changed their mind 2 weeks later and accepted the lower. The agents told us they have financial problems so needed the extra. Which makes me wonder if they knew they couldn't get their money back from the start...

TrickyDicky101

Who is the freeholder? The charge for the share certificate at least suggests that the right to manage has been exercised by the leaseholders (and hence at some point these charges have been agreed by existing /previous owners).

I agree though, walk away if you don't like the sound of it.

Nik3000

Who is the freeholder? The charge for the share certificate at least suggests that the right to manage has been exercised by the leaseholders (and hence at some point these charges have been agreed by existing /previous owners).

I agree though, walk away if you don't like the sound of it.

Yeah this could be the case. I'm not sure why they would agree with this though if they did choose the management company. I mean £420 for a deed of covenant? I'll challenge anyone to find someone else who's been charged that much.