FTB Upcoming works on leasehold

[Deleted User]

So, I received the contract for my purchase yesterday and have a few questions about how I should proceed.
Bit of background, I'm buying a purpose built 2 bed flat in East Sussex, it is a leasehold property managed by a local property management company (who aren't particularly well-loved) but there is a committee of 16 people (total of 28 flats).
Supposedly, no works can be carried out until 3/4 of the committee agree.
The property management company took over in 2017 and since then the reserve fund has been building up.
My maintenance payments would be £166 a month, to be paid quarterly. Which at the time of offering on the property, I thought sounded like a good amount. Enough to feel that everything would be covered at least as I can see all flats pay an equal share. So that's about £55k a year.

Anyway, received the contract and it states that there are more works 'required' in 2019 and the years that follow that will not be covered by the reserve fund.
The common area's carpets, new soakaway and driveway to the front of the building and new windows to the common area. (This is just the works in 2019 there is similar in 2020).
I can feasibly see why a soakaway would be required but don't feel the other works are particularly necessary.
My solicitor asked the property management company what they think the costs may come to & they responded saying they couldn't possibly say.
A section 20 request was sent to the seller late March so months after my offer was accepted.
I'm just not sure the best way to proceed.
I've spent nearly 8 years saving for this deposit and I'm buying alone. The purchase itself is at the top end of my budget, so I really wouldn't cope if 6 months down the line I get a bill for a couple of grand. I purposefully avoided flats where maintenance payments were low in an attempt to avoid hefty bills.
I understand that leasehold properties run this risk, but I don't have the luxury of affording a freehold property.
Any tips on how to respond back to my solicitor would be great, thanks in advance.

csgohan4

You will have to pay solicitor or not in some form, as it is in your lease.


Perhaps hold fire until you can afford a freehold with no management company.

kuratowski

The purchase itself is at the top end of my budget, so I really wouldn't cope if 6 months down the line I get a bill for a couple of grand.

I think then this purchase is not a good idea. For leasehold properties there is very little control over what works you can be billed for, and you are legally obliged to pay.

Even as a freeholder - as a homeowner - you have to expect there to be necessary costs from time to time, and always have few thousand pounds set aside to meet them.

Sapphire

kuratowski wrote: »

I think then this purchase is not a good idea. For leasehold properties there is very little control over what works you can be billed for, and you are legally obliged to pay.

Even as a freeholder - as a homeowner - you have to expect there to be necessary costs from time to time, and always have few thousand pounds set aside to meet them.

That is not the case. I have always lived in leasehold flats (converted and maisonette), with long leases. The maisonette I currently live in is leasehold, and the top one takes care of the top of the building, the bottom one the bottom half, an arrangement that works well. That's according to the terms of the lease. There are no service charges (or any other charges). I've carried out structural work on the place (all you have to do is to advise the freeholder and they can't legally prevent such work).

In fact, I've lived in one property that became share of freehold, but the results of that were that no one wanted to take responsibility for the building.

I actually prefer to have a leasehold property (if it is a maisonette).

However, I would not like a leasehold new-build property at all. It seems they are a con all around.

bouicca21

You may not think some of the work is strictly necessary but decent carpets and decor in common areas are actually a major selling point - it demonstrates to potential purchasers that the propert is well cared for. And remember the freeholder is bound by the terms of the lease as to what can and can’t be done.

Have you looked at the section 20? Does it not give you a rough idea of costs? Better a freeholder who is proactive and looks after the place than one who does not.

No matter what you buy, leasehold or freehold, there will always be maintenance costs, some expected, some not. Suck it up or buy something else.