Could my service charge be making my flat unsellable?

Marvel1

It wouldn't get a viewing from me as the service charge is more than my mortgage!

Sistergold

The flat and manor do really look beautiful I can see why you bought the place. Unfortunately like some people I would struggle with the service charge as I would worry where the charge will increase to after a few years and whether I would want to be saddled with that even after I have paid off the mortgage if say I am retiring. You really need to be financially confident to decide to stay in a manor I guess but with COVID we all now know how life is so much more uncertain and a service charge just for a listed building bring more uncertainties to survival. Like others that service charge will make more sense if there was gym, swimming pool, concierge etc then one can cut expenses as no need for those memberships. 

The setting is so lovely though you should eventually be able to sell but it might take time. 

peter12345678910

£8000 to remove a beehive, is that because it is an endangered species? 

Kacsa99

More because of location - required scaffolding as well as a specialist in humane bee removal. Then it was the clear up job after a good chunk of the honey escaped down the stack. That itself required some of the chimney to be dismantled and then expertly repaired. 

Aranyani

I'd probably have argued to just leave the bees alone in that case!  

Kacsa99

They had infested 2 flats which had become uninhabitable. 

G3ralt

We just bought a house as FTBs - young professional couple and no kids. I think if we were to spend £3600 a year on service charge we'd want a first class Gym, great commute, good cafes and restaurants, great high street shops minutes away etc. We'd think that service charge is a massive negative unless it is trumped by significant other positives such as amenities nearby and spaciousness of the property itself.

devildolly

I live just down the road from you. It is a lovely area, and flat. The service charge is indeed high. If this is where I think it is, haven't the fields next door been recently sold to a developer? Could this be putting people off?

House_buyer_2020

unkle said:

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.

Yup, I agree I’d be looking for a more expensive property if I had £300 a month to spend on a service charge. I doubt I spend £300 a year on maintenance for my 3 bed semi that’s a similar price.

numbercruncher8

Personally I doubt whether the planning would put off people from a viewing, that's the type of thing that comes up later.

I know of a listed block in London where the charges are high (combined ground rent and service charge is around £500), no flat seems to have sold in that block since 2017, and properties in that block pop up regularly. By all rights, it should sell quickly as the location is excellent. But I think the chief reason why it does not is because sellers price too high, it is only a little cheaper than a flat without the hefty charge where it needs to be a lot cheaper. This hasn't been helped by the fact that one flat did successfully go at a kite-flying price, and then everyone else wants close to that price as well. 

Looking at the previous sold prices for that development, it seems that terraced freehold properties sold for £280k and £260k...don't know if they pay high charges as well, but it just makes a leasehold flat for just £10k less seem expensive. I assume the finish would be quite similar.