Seller lied to estate agent and myself can I claim costs?

S66PAL

Hi All!

A couple of months ago I had an offer accepted on a flat. The estate agent was advised by the seller that the property was self managed by the 5 freeholders who live there, and maintenance was done as and when needed. After the survey was done and searches were started by my solicitor , I find that there is a management company involved. There is a monthly charge of £120. I reiterated to the estate agent from day 1 I didnt want a property with a management company as I have had a bad experience in the past. I have had to pull out of the sale and would never have offered if I had known. I’ve contacted the estate agents who say the seller told them
It was self Managed so they cannot be held to blame. My costs are over £2000. Is there anything I can do?:p:cool:

HampshireH

Why are your costs so high at this stage? My entire purchase costs were less than 2k paid after the event to the conveyence solicitor.

You will find on all agent adverts a disclaimer which states the information is based on the information they have been told. This is why the checks then take place.

They wouldnt be liable for your costs.

da_rule

There is an argument as well that if they own the freehold and then appoint a management agent then it is a form of self management via the agent.

buglawton

How do you know that the 5 owners didn't engage a management company?

The real question is, what's in the lease about this. And then, didn't your solicitor spell out what you were getting after s/he read it for you?

eddddy

I'm wondering if you've misunderstood the set-up?

It's likely to be that the 5 freeholders have hired a management company, and the freeholders tell the management co what to do.

For example, 'as and when' the roof needs repairing, the 5 freeholders tell the management co to get quotes from roofing firms, and manage the process etc.

Obviously, the management company will charge a fee for their time and expertise.

(But then the freeholders don't have the time, expertise and/or inclination to do it themselves.)

Doozergirl

You want to try getting money out of the 4 other freeholders for money 'as and when'! It just doesn't happen. Self managing and having an agent that you employ yourselves is the best way, in my opinion. They are employed by you and therefore less likely to rip you off as there's an interest to keep the work.

Someone has to do it and it shouldn't be free because it's a total PITA, especially when you're personally coughing for selfish neighbours.

It's essential to build up a sinking fund because of this. Everyone budgets a bit for work which is needed, meaning work is less of shock.

If you have to buy a flat then you want something well run.

If you don't have to buy a flat, don't.

I'm not sure why you've pulled out, to be honest. I don't think you understand how this works. What you want is something well run, well maintained and not too expensive.

DoaM

£120 per month is £1,440 per year. I'd imagine that £240 of that is management fees and the rest is the sinking fund contribution.

cattie

A great majority of self managed leasehold properties who have a share of freehold set up a management company to manage the running & responsibilty of the property.

My present home is share of freehold, 999yr lease & self managed via a management company. It gives us a say when it comes to any repairs or maintenance that needs doing as we collectively choose which companies to undertake the work to get the best price rather than a single freeholder landlord just going ahead & engaging a company with no input from the residents.

The service charge goes towards ground rent if any, plus buildings insurance, garden upkeep etc. & possibly a sinking fund to meet costs of any future work needing doing.

Before thinking of buying a flat you need to educate yourself over the differences between being a leaseholder with a separate single freeholder holding the title & having responsibility to arrange the upkeep of the building, taking out buildings insurance etc. (all costs met by leaseholders) or having a share of freehold where the residents make decisions regarding works & upkeep.

Somebody has to manage the building if it's not a single freeholder who holds the title & the fairest & democratic way to do this is to set up a management company, giving those with a share of the freehold a say in how the building is managed.

If you're truly £2k out of pocket for pulling out then you've only yourself to blame as where there are more than 2 leaseholders then a managing agent is the best way to ensure the building is maintained to a good standard.

buglawton

cattie wrote: »

...My present home is share of freehold, 999yr lease & self managed via a management company...

How can you have a share of the freehold and a 999 year lease at the same time? Are the flat owners leasing from themselves?

S66PAL

Hi yes sorry maybe I didn’t make myself clear. Yes the 5 freeholders previously appointed the managing agent. The seller told the estate agent that the building was self managed and no management company involved. It is a converted house not a block of flats. Most of the huge Victorian properties here are split into flats. It’s a personal preference that I buy a self managed property so advise on that is not what I’m asking here. I’m asking if I could go after either the seller or estate agent for my fees, as on the very first viewing I reiterated I didn’t not want a managed property. You would be pushed to find a solicitor to conveyancing for less than 4K on the south coast. My fees included a £600 homebuyers survey. Again it’s just advice on how I could proceed I’m after, thanks.

eddddy

buglawton wrote: »

How can you have a share of the freehold and a 999 year lease at the same time? Are the flat owners leasing from themselves?

That's exactly what 'share of freehold' means...

You own 2 things...

1. You own a leasehold flat
2. You are joint owner of the freehold of the building.

This is something that seems to confuse many posters on this forum.