Could my service charge be making my flat unsellable?

saajan_12

The listing could have a large part to do with increasing the cost of a similar repair. I was helping a friend look at London flats. Avg service charge was ~£2-3k which included lifts, 24/7 concierge, gym and pool though this was split among easily 100+ flats. A flat in a listed building, similar area minus the lifts / concierge / gym / pool had an avg service charge ~£6k per year. 
I suggested my friend not buy the listed one. 

tacticalbanjo

To me it looks like a young professional couple type flat but I don't know any young couples who would want to buy a flat in the boonies with a massive service charge. Even for an older person, I can't see any form of entertainment on the map that you wouldn't have to drive to which would be massively off putting. 

davidmcn

tacticalbanjo said:

To me it looks like a young professional couple type flat but I don't know any young couples who would want to buy a flat in the boonies with a massive service charge. Even for an older person, I can't see any form of entertainment on the map that you wouldn't have to drive to which would be massively off putting. 

Yes, I mean you could say it's within walking distance of Waitrose etc, but that's mostly a walk along an unlit NSL road with no pavement...

I'm not sure the photos are doing justice to the listed aspects of the building, or the grounds (half of the last photo is gravel!), in a way which might help to justify the service charge. You could at least say "shares grounds with only x other flats" or something.

bouicca21

One of my pet peeves is when agents mess up the order of photos.  The Mackenzie Smith photos for example have what is presumably the entrance hall to the building after the sitting room and kitchen then go to a bedroom and back to the kitchen.  The Hampton one is no better.

As for the kitchen itself, it’s an awkward shape which limits the possibilities for arranging units, but all the pictures make it looked as if the working space is cramped and I hate the idea of having to walk round that peninsula unit every time one moves from kitchen to sitting room and vice versa.  Most of the pictures suggest the dining table is tiny And that there isn’t room for a bigger one.  The absolute worst photo of the kitchen is the 5th one in (labelled picture 11) on the Hamptons ad.  I’m not into swinging cats but I like to think I have enough room to do so, and that I don’t have to sidle around the cupboards.

numbercruncher8

The market for this is quite limited really....I can think of a few older people semi-retired or retired people who would love it, as you could walk in the grounds and be reasonably safe. But the location means you need a car to go places.

You would also get younger people who don't need the train for work, and who drive, and who really love the design. It is impressive to be driving home to that, a bit like a hotel. 

The problem isn't so much the service charge as the price. At £200k I doubt people would be complaining much, as it comes at a discount to similar places nearby. But at the current price, once you consider mortgage + service charge, the comparables are just better. 

Personally I don't really see the need for dual agents which gives off a desperate vibe..given that it's nice enough inside, if it can't shift for 2 years it's gonna be the price. The service charge is fixed, the asking price isn't.

theoretica

Thinking about who it might appeal to - and its great point to me is the grounds.  Is the lease etc pet friendly?

unkle

I'm a BTL landlord and regardless of where the flat is I wouldn't be buying with a £3600 a year service charge.

I think also even for a buyer, £300 a month on a mortgage is probably another 70k, so i'd rather buy a house for £340k that a flat for £270k with that service charge.

Grumpy_chap

saajan_12 said:

service charge was ~£2-3k which included lifts, 24/7 concierge, gym and pool 

A service charge of £2-3k/year but including the concierge, gym & pool is quite different to the OP's service charge £3,600/year because there are a lot of buyers that would pay for the gym membership, so they can make that saving to pay the service charge.  

Kacsa99

Appreciate all the comments. Much to think on but very glad I asked the question here. 

[Deleted User]

I agree with Unkle - the £300 can buy £70,000 onto a freehold house. I applied the same when I bought my BTL. Decided to stretch to a house rather than a flat with lease, SC, ground rent and close neighbours. If you have been on the market that long, and really want to move, then you may have to seriously drop the price unfortunately