Misinformed about service charge :(

ilikepancakes

eddddy wrote: »

So presumably you're saying that the estimated service charge for the flat for the current year is £2400.

As others suggest, you should look at the 'line items' for the service charge account estimate - to judge how much is 'regular' yearly costs, and how much is 'occasional' costs.

(for example, there could be a charge for repainting the gym and/or re-grouting the pool, which only happens once in every 7 years.)

You could also check last year's estimated and/or actual service charge - perhaps it was £2000. Hence the comment from the seller.

I have all the accounts in front of me, service charge was £2200 in 2013 so it haven't change lately from £2200. There was a roof repair lately but it was funded from reserve fund.

FTBAngst wrote: »

I think I’m surprised you’re p*ssed off because
1) as a rule I don’t believe anything an EA says anymore
2) you’re complaining about having had to pay a solicitor, but this is how I’d expect to get this information reliably (through a solicitor), that’s part of why you hire them.
3) are you prepared for the problems with service charges and leasehold? Like others have said, it varies. If you’re not happy to pay an increase of £400 now, would you be happy to pay £3000 for a roof repair etc? (this was the case with one of the flats I went to view, even with a sinking fund each flat was facing an extra £3k for unexpected roof repairs)

1. I didn't know that I can't believe EA, I'm in UK only 3 years, I'm buying a flat for the first time so I don't know how it works. If I ask what's the service charge I don't see any reason why would they lie. I think it was just a mistake, they dodn't know so they said £2000.
2. I'm not complaining I have paid to solicitor. I would complain a bit if I asked Seller for a price drop and was declined. Then I would complain for losing my time and paying solicitor because i was misinformed and maybe at that time I would not made an offer knowing the service charge is £2400 instead £2000.
3. I am prepared. I'm not prepared to be fooled and misinformed and I'm not prepared to make important decision on fake facts.

I really feel if I agree to this £2400 it will mean I let them fuk me up.
I'm sure if I try to pull out or if I suggest price drop they will try to blame me

need_an_answer

In your position I would be more concerned with the ground rent increase every 21 years which is due shortly...simply because you get nothing in return for a ground rent payment...at least with the service charge these support things that enhance the communal facilities.

Presumably you also don't intend to spend the next 20 years in this flat...with a lease of 106 years its going to depreciate more in value as that diminishes and become less attractive to buyers than the service charges.

When you buy into a leasehold property with the added extras of gym and pool facilities as well as no doubt lifts you need to appreciate that the service charge is likely to be high and have the funds to match the "lifestyle " the complex is offering.

At least you don't need separate gym membership that will save you a little each month!

babyblade41

Did I read you are paying 255k ? I'm sure you could have a look at houses for that sort of money which are completely freehold .

LH seems to fill you with horror and continue to do so for every increase in SC.

Do you actually need a gym and swimming pool ? These are expensive items to want and as communal will take a fair bit of money to maintain.

Swimming pool filters and heaters have a habit of being expensive when broken

MEM62

ilikepancakes wrote: »

It has swimming pool and gym exclusive to the residents of the estate, private park, overal really nice place.

Sounds nice and explains the current level of service charge but bearing in mind that your are already having issues with a figure of £2,400 how are you going to deal with that increasing significantly when the pool needs major maintenance or they replace the gym equipment. It is likely to happen.

ilikepancakes wrote: »

I really feel if I agree to this £2400 it will mean I let them fuk me up.

Rubbish! Nobody is screwing you. Somebody made a mistake. Nothing more and nothing less. You are taking this way too personally.

ilikepancakes wrote: »

I'm sure if I try to pull out or if I suggest price drop they will try to blame me

And they would be right. In the greater scheme of things, it is not a big enough issue to be a deal breaker for most people.

Perhaps you should look for a freehold property. I am not sure you are prepared to deal with being a lease holder.

kingstreet

ilikepancakes wrote: »

Wait, are you saying that I should ask for everything formally in writing after asking verbally in the firstplace?
I thought that service charge is important.

I'm sorry but I'm not sure if I understand last part of your post. When I said I proceed i mean instructing the solicitor. And because I asked the Estate Agent how much is the service charge I havent told my solicitor to establish it as soon as possible.
There were a lot of other questions I asked as well, so I think it is reasonable to take the answer verbally.

I agree, they just did a mistake, it happens.
But the question is - what now?
I know I can proceed or ask for £5k reduction and be prepared to be declined. But I don't understand why people above are surprised I'm pi*sed off.
I have paid for the solicitor, I have lost 3 months and now I have to pya extra £400 every year because of somebody's mistake?

Information given verbally should always be obtained in writing before you rely on it.

The conduit for reliable information is from your solicitor to you. It is not from the vendor, nor their agent. If such an issue is a potential deal breaker you would be best advised to hold all other expenditure on the purchase until your solicitor obtained the information from the management company.

Only you can decide how to proceed from here; but if you do decide to withdraw, ensure you ask the right questions of the right parties at the right time on your next potential purchase.

gwynlas

As mentionned I would be concerned about grouund rent increases. How proactive are the managing agents?
How well are gym and pool maintained?
Is there a sinking fund for possible repairs/refurbishments or how else is this managed?
£2400 does not appear unreasonable if block well maintained with good facilities.

ilikepancakes

Ok guys, I have decided to proceed as I will not hold the sale because of £33 per month.
I still feel that it is unacceptable for the EA to provide with misleading information to their client and if such thing happens it would be on the EA/seller side to reimburse it somehow as now I will pay more than I expected based on the information EA provided me.

I feel that it would be 100% reasonable to pull off or to ask for reduction as it affect my finances.

I hate when I read here that £33/month is nothing and it does not matter. People here try to save every possible £1 on any available discount or offers and on the other hand they easily say that I should not mind £33/month for the rest of my life.

AdrianC

ilikepancakes wrote: »

I still feel that it is unacceptable for the EA to provide with misleading information to their client

You aren't the EA's client. The vendor is.

And the EA has simply passed on what the vendor told them.

bouicca21

ilikepancakes wrote: »

I still feel that it is unacceptable for the EA to provide with misleading information to their client and if such thing happens it would be on the EA/seller side to reimburse it somehow as now I will pay more than I expected based on the information EA provided me.

And there is your mistake. You are not the EA’s client, the vendor is.

And I don’t think anyone is saying £33 a month is no big deal in general, they are saying that it is no big deal in the context of your purchase . Your expectations of accuracy from the EA are unrealistic.

ilikepancakes

gwynlas wrote: »

As mentionned I would be concerned about grouund rent increases. How proactive are the managing agents?
How well are gym and pool maintained?
Is there a sinking fund for possible repairs/refurbishments or how else is this managed?
£2400 does not appear unreasonable if block well maintained with good facilities.

I will ask my solicitor about ground rent increase as I don't think I 100% understand what the lease says.

Gym and pool are ok, £8k part (chemical feeder?) changed last year, they are not big but just ok to non proffesional athlete. Pool is only 15 meters long so not the big one.

£2400 is not unreasonable - this is true but it is not my point. I was told it is £2000 and not £2400.
If I knew it is £2400 I would probably stick to my first offer of £250k and I bet it would be accepted after some time as there are 3 more flats for sale there for last 5 months.

I think people here do not take my point. What if it turns out that the service charge is £4000/year? Would they say I should take it as normal? If not where is the line to say that increase is low enough from £2000 to do nothing? £2600 still ok? £2800? Or maybe 3200?