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Buying Leasehold Flat, Charges from Simarc
BellaPrimrose
Posts: 6 Forumite
We are a FTB buying a Leasehold Flat with a mortgage, 999 year lease, we have a completion date of 15th February. I just received the contract etc and in the Leasehold Contracts there are extra costs I was not expecting - a Notice of Transfer and Notice of Charge for the Landlord's Agent (£174 each with a total of £343) and a Deed of Covenant with the Landlord via the agent at £258.
The Landlords Agent is not the Management Company, they are are separately charging £90 for a Notice and £35 for a Deed of Covenant but I was made aware of this much earlier in the process and it seems a much more reasonable fee.
The Landlord's Agent is Simarc, I had a Google and see that they are nightmare company and notorious for overcharging. I queried it with my conveyancer and they said the fees are standard issue in their leasehold pack. I looked through the leasehold pack and can only find reference to the £90+£35 for the MC charges. I have checked the Lease and it says re notices etc that a fee of no less than £20 per notice can be charged.
I have had my mortgage offer extended by a month and have told my conveyencer I would like to query the charges but have not contacted the seller or Estate Agent yet, I had a Google and see that there are guidelines regarding reasonable charges etc and was wondering if anyone had had any success in a similar situation? We're so close to completing I'm wary of slowing things down, and if it was just this one off charge I might consider sucking it up, but I'm very worried about what I've now read about Simarc and potential future issues with Ground Rent, fees if I decide to sell/sublet etc - I'm aware that the seller may be incurring a lot of fees from them their end too and don't want to be unfair, but at the same time there's been other issues with the purchase along the way. TBH if I'd found out earlier it was this company I might have looked elsewhere (I realise that's on me to look into). I still have not received the Ground Rent account (just a receipt for the last payment) and there was a lot of missing information on the Leasehold Pack - I'm now assuming it's because of Simarc's charges and that I'll potentially be in the same situation if I decide to sell.
Is it feasible to get the fees reduced via our Conveyancer?
If we're considering walking away is it reasonable to expect the seller to pay these fees so that we're absorbing some future cost/difficulties down the line?
Thankyou
The Landlords Agent is not the Management Company, they are are separately charging £90 for a Notice and £35 for a Deed of Covenant but I was made aware of this much earlier in the process and it seems a much more reasonable fee.
The Landlord's Agent is Simarc, I had a Google and see that they are nightmare company and notorious for overcharging. I queried it with my conveyancer and they said the fees are standard issue in their leasehold pack. I looked through the leasehold pack and can only find reference to the £90+£35 for the MC charges. I have checked the Lease and it says re notices etc that a fee of no less than £20 per notice can be charged.
I have had my mortgage offer extended by a month and have told my conveyencer I would like to query the charges but have not contacted the seller or Estate Agent yet, I had a Google and see that there are guidelines regarding reasonable charges etc and was wondering if anyone had had any success in a similar situation? We're so close to completing I'm wary of slowing things down, and if it was just this one off charge I might consider sucking it up, but I'm very worried about what I've now read about Simarc and potential future issues with Ground Rent, fees if I decide to sell/sublet etc - I'm aware that the seller may be incurring a lot of fees from them their end too and don't want to be unfair, but at the same time there's been other issues with the purchase along the way. TBH if I'd found out earlier it was this company I might have looked elsewhere (I realise that's on me to look into). I still have not received the Ground Rent account (just a receipt for the last payment) and there was a lot of missing information on the Leasehold Pack - I'm now assuming it's because of Simarc's charges and that I'll potentially be in the same situation if I decide to sell.
Is it feasible to get the fees reduced via our Conveyancer?
If we're considering walking away is it reasonable to expect the seller to pay these fees so that we're absorbing some future cost/difficulties down the line?
Thankyou
0
Comments
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Always best to try to find out the name of the freeholder and its managing agents before proceeding with a flat purchase. When you find out the names you can Google them and then if you get adverse comments - buy something else.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
Will definitely make sure to do that if we're in this situation again!0
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If the fees are in the lease, no. You are buying the lease as it is, not negotiating the creation of a new lease.
If you walk away, any costs you have incurred so far are yours to pay. Just as the seller's costs so far are his to pay.0 -
If you walk away, any costs you have incurred so far are yours to pay. Just as the seller's costs so far are his to pay.
Thanks for your reply - sorry, I worded that badly, I didn't mean I expect the seller to pay our fees if we do walk away, just that if we're feeling like walking away due to this we were thinking of asking the seller to pay the Leasehold Agent fees and we'd reconsider going through with the purchase but I wasn't sure if it would be a reasonable thing to ask.0 -
Walk away - you have done your research and can see what a nightmare Simarc are and if you have doubts so will anyone you may want to sell to in the future.
Join the FB page National Leasehold Campaign and you will see Simarc are one of the main problem companies people are stuck with.
Even if it costs you to walk away it may be one of the best financial decisions you make.0 -
Thank you for you thoughts BBH123, good point re buyers in the future - I will join the FB group now.
I've just received the Ground Rent account and it's all good with no arrears etc.0
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