New flat purchase - roof might need replacing!

gilesm89

I have not yet exchanged on a share of freehold but have recently had all the documentation come through for it and have finished reading through it.

Generally, everything seemed to be in order but there was one thing that was a big red flag to me. In the 'information from the sellers about the property' (LPE1), it noted that the roof had recently had some repair works. The roof was assessed and it was estimated that it (and tiled wall cladding) would need replacing in about 10 years at a cost of £80,000! As a result, the owners (there are 6 flats) may need to start to increase contributions to the sinking fund.

I'm glad that this was brought to my attention but also slightly annoyed that it has come out of the wood work at such a late stage.

I'm going to ask more questions about the amount currently in the sinking fund and will potentially look into getting the roof assessed by someone else; perhaps the company who did the repairs are just trying to get future business!

As a first time buyer, I just feel a bit nervous, as I'm not sure if this is something that is just a normal part of buying a property or whether I should try and start seeking money off the agreed price.. Any advice from experienced property buyers would be greatly appreciated!

Thanks

pinkshoes

As a previous flat owner, you need to know how well the freehold is managed.

Get as MUCH detail as possible.

It SHOULD have a detailed plan of what will need replacing/maintaining and when, estimated costs, then this split as an ongoing yearly payment between all the flats. It should also include a contingency fund, and include increases in costs over the years.

If there is insufficient funds, I would question whether it is being managed correctly.

Mine was bought as a newbuild, but we had the option to be part of the management team to make sure we were happy with what was going on.

eddddy

gilesm89 wrote: »

As a first time buyer, I just feel a bit nervous, as I'm not sure if this is something that is just a normal part of buying a property or whether I should try and start seeking money off the agreed price.. Any advice from experienced property buyers would be greatly appreciated!

Yes - for any leasehold flat you buy, you will almost certainly have to contribute to maintenance and repair costs.

That's why many people have surveys. Hopefully, the survey will highlight any problems which might need expensive repairs.

Having found out that the roof has a limited life since making your offer, that might be a valid reason to reduce your offer.


Note: You say that you are buying a 'share of freehold' flat. In reality that means you are buying 2 things:

1. A leasehold flat
2. A share in the freehold ownership of the building

It is the leaseholders who pay for maintenance and repairs (not the freeholders). So ownership of a share of the freehold doesn't make too much difference.

gilesm89

I appreciate that I will have to foot the the bill but not really sure what my next step should be.
I will just try and get more information.

It is typical, the estate agent is pushing me to complete quickly when this revelation has just come to light!

eddddy

gilesm89 wrote: »

I appreciate that I will have to foot the the bill but not really sure what my next step should be.
I will just try and get more information.

Your next step is to decide whether...

1. You want to buy the flat at the price you have agreed
2. Reduce your offer (which may or may not be accepted)
3. Walk away

The EA will undoubtedly advise you to go with option 1.

What other information are you looking for?

need_an_answer

TBH I think the management company have been very honest and clearly have a good 10 year maintenance plan in place.

Far better that large ticket items are put into the picture sooner rather than just issuing you all with a section 20 notice of intention to carry out work immediately and ask you to pay up.

The anticipated life of the roof is now around 10 years so why shouldn't those living there now start to contribute to it,they benefit from it and that's what a sinking fund is there for.

goodwithsaving

I just want to chip in. At my previous flat, the contribution was £150/month but when the garden needing tidying etc, somebody did it. When the roof needed replacing, somebody else did the running around and it was paid for out of the sinking fund. When the guttering needed clearing, somebody did that too.
Now I'm in a house and have had bills for urgent repairs (new roof being one). Of course there are many benefits to owning a house and freehold property and I wouldn't go back to a flat, but don't underestimate the benefit of effectively paying somebody else to manage everything external for you. There are days when I wish somebody else could just take over maintainance and the logistics of fixing everything.


Good luck with the purchase.

davidmcn

We've had plenty of previous stories here of surveyors' doom-mongering (never mind verdicts from contractors with a vested interest in getting more work), so I would take "it would need replacing in about 10 years" with a pinch of salt. It may well be that in 10 years' time it's inspected again and is given another 10 years' reprieve.