Buying a Flat- service charge doubled in the last 4 years

NeilCr

It's quite easy to get mixed up between managing agents, management companies etc. Think you just need to ask Miller if they know who owns the freehold i.e who the managing agent works for.

The flat owner may well know, too.

Norman_Castle

Could the right to manage be an option?

masisu

Neil, I did ask in the past who is the freeholder, and yesterday again.
Got the same answer from 2 employees of Miller Countrywide- "it's the Moreland Estate Management". Is this not possible? I've looked online, including on this forum(can't remember which thread), and management companies can be freeholders. I'm only debating(not arguing).
Norman , Im not sure as fairly new subject for me.
I've found this info(hope MSE will allow my links):
https://www.theguardian.com/money/2012/sep/21/ditched-managing-agent-saved-money-leasehold-property#comments
And another
http://www.leaseholddoctors.co.uk
These ultimately will depend though on at getting at least 50% of the 9 flats in the building

NeilCr

It's possible.

If you take our situation. We, the residents, own the freehold and have a management company of which I (and others) am a director. We (the management company) appoint a managing agent who carries out the day to day running of the estate - collects service charges, does the accounts, organises repairs etc etc etc. Moreland look like that's what they do - be the managing agent.

Yes - management companies = freeholders. Generally, managing agents don't equal freeholders but it is possible that Moreland have another arm to the business.

If they do, then you don't have residents owning and having control of the service charges. And that then becomes problematic. I tend to agree with an earlier poster that I'd, now, if it was possible only buy a leasehold property where the residents owned the freehold.

But that's in an ideal world. Sometimes that opportunity is not available. It may be that, if you want to live in Penzance, you won't be able to find that type of property in your price range - and you may, then, have to take a punt.

No problems btw. I realise you are not arguing. I have some experience - having been in two developments where there are management companies - but don't claim to have widespread knowledge

masisu

Thank you guys.
Right to manage I believe it's available for everyone isn't it?
Obviously not council managed flats.
And of course I have to convince at least 50% of flat owners(leaseholders) that right to manage is better.
PS: the EA is pushing me to talk to their mortgage adviser(broker), although I told them I've got everything in place alread(broker, AIP etc).. This is the second EA over here that does this, the moment I tried to negotiate the property price. She said I quote "you know what the seller's asking price is. We all want things to be cheap. I really don't understand why wouldn't you meet with our adviser, it's free advice? And he'll be able to land you more..?"
Should I go with the flow and let them quote me(just to be friendly)? Will this affect my credit rating?

masisu

Sorry for double posting...just got in contact with Moreland(for N-th time) and they managed to tell me who owns the freehold: MW Freeholds Ltd.
I've asked for contact number, email, website etc. The answer in their own words "they haven't got a phone number you can contact them at, the only way to contact the freeholder is through us Moreland Estate Management".
Guess this clarifies it..is one of their subsidiaries?

[Deleted User]

Right to Manage is not a breeze in the park and I would check the other 2 flats in the block want to go down that route. All premises must be residential aswell. Make sure all Leaseholders are present and contactable, having to search for an absent owner can be time consuming and if the other doesn't want to do a RTM you are stuck. The Freeholder also has a right to refuse permission and if they do and you get sucked into tribunals heaven help you.


Yes it gives you control over your finances but you are managing a limited company and all that entails. If you go with this and then one Leaseholder doesn't pay up etc you will have to do all the formalities yourselves or you might find your neighbours are incapable of contributing to the admin / process and you end up doing everything yourself which is very time consuming.


You have the advantage of not going in blind so thoroughly research the options, with so much public knowledge now you have no reason to get burnt.

Jox

Hi, I had a flat for 12 years in north London and the management company acted on behalf of the freeholder in our case. The annual service charge increased every year and it was always a source of tension wondering what the next bill would be!

Is there a reason you would you buy a 1 bed flat for you and your son?

He's 7 now but will want his own space soon enough! Could you look for a 2 bed in a cheaper area with some garden space?

masisu

BBH123 , yes I kind of thought it isn't easy as pie, and deeply appreciate your detailed reply.
Jox thank you for reply as well. The 1 bedroom is cheaper(and not many 2 bedrooms on market if any), and I can leave the bedroom to my son, whilst I use the front room.
Later on when he'll be an adult, he could keep the flat if he wants, and I'll be happy living in a shared house/flat

masisu

This is the company that owns the freehold
https://beta.companieshouse.gov.uk/company/05908812/filing-history

What do you guys think about it?
I'm not well familiar with financial terms and financial market, but this company(ltd) looks as not wanting to "show" much , but the contrary.
Should I worry about it?
Could it be "run" by someone that's abroad or/and on an early retirement- that has employed Moreland for a %?
Could it even be Moreland making more money through fictive or "ghost" companies for very reduced tax or no taxation at all?
PS: I wouldn't inquire(read: be nosey) about it if it wasn't related to the subject, which I believe it to be.