Could my service charge be making my flat unsellable?

Kacsa99

The freeholders don’t have the house charge so substantially cheaper SC for them (about 1/3). The house is quite a bit older than the freehold properties so has more of the period features. The developer finished all the kitchens with similar cabinetry etc but first thing we did when we moved in was rip that out and install something better.  I like to think we have created a bit of a distinction by doing that. 

AdrianC

House_buyer_2020 said:
I doubt I spend £300 a year on maintenance for my 3 bed semi that’s a similar price.

That sounds like either very short-term thinking, rather than a proper long-term average, or a hugely over-simplified approach.

Remember, with any kind of shared facility, you're paying somebody to do work you may do yourself.
Do you have a garden? How much would you spend if you were paying somebody to do the gardening? Is your garden three acres...?
Do you DIY basic maintenance to the fabric of the property? How much would you spend if you were paying somebody to do that work?

Is £300/mo a lot of service charge? Yes...
But not for a listed building with acres of maintained grounds.
Especially when there's a lot of that going into a sinking fund for the inevitable huge bills...

It's a very nice location, and I can see how it would offer massive appeal to some buyers - and you only need one... 

numbercruncher8 said:

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.

I would presume the terraces are modern-build "annex" in the grounds, so while they'll have the grounds upkeep, they won't have the maintenance for the fabric of the listed building. If they were conversions of a stable block or similar, then they'd almost certainly be lease.

Just looking at the location, could the perception of noise from Blackbushe airport be one factor? About 1km in a fairly straight line from the end of one runway, a mile to an active quarry.

Hannimal

Aranyani said:

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

They can do substantial damage....

gwynlas

The Mackensie photographs are better in my opinion so you should drop Hamptons as you will have two listings on Rightmove which looks desperate, Their description however is lacking with a repeating of words such as views over grounds and ornamental fireplace (why do you have things in front of these?) so it should be rewritten. Mention of Waitrose itself  isn't enough there should be mention of other local amenities. If the service charge also includes a sinking fund then it  should be stated and  also be better described as covering gardening, insurance and maintenance of communal areas. As it is a share of freehold  is the managing internal or external? Either way you could state resident appointed management company.  I am surprised that you chose this property having a child it looks as though it might be better suited to an active retiree.

AdrianC

gwynlas said:

I am surprised that you chose this property having a child it looks as though it might be better suited to an active retiree.

Three acres of grounds for the kid to run around in? Sounds like a great place to grow up!

MoneySeeker1

Allied to the service charge - it may not be the level of the service charge so much to some people (as £300 a month to a single person might well feel like a lot - but £150 each per month to a couple would feel a sight more reasonable per person iyswim).

The other factor to this is "communal". How are the decisions made about communal areas etc? Is there one household or a couple of forceful people that try and make all the decisions on behalf of everyone - or is it more "modern and fair" than that (ie every household gets appropriate percentage of the say - thus if there's 10 households for instance - then each household regardless of size gets 10% of the say on communal decisions)?

Some people would accept one bossyboots taking all the decision-making on their behalf. Others are more "modern and fair" and will work out what their share of the decision-making is due to be and expect to have it. No-one can tell from outside too whether there is one (or a small group) of old-fashioned bossyboots types on the one hand and one (or a group) of "modern/fair-minded/all will be equal" on the other hand = shall we say that would mean "rather uncomfortable living all round".

NinjaTune

Absolutely gorgeous building and lovely grounds but yes, the service charge would not be affordable for me.

I know the area and it's a nice location but not commuter-friendly if you need the train.  You'd have to drive and park at the station which would add to the commuting cost.  None of the more local stations are on the Waterloo or Paddington line which adds to the length of the commute as well as the expense.

The bedrooms seem quite small and I'm not keen on the fact they open up off the kitchen tbh.

Kacsa99

Moneyseeker1 We are all shareholders in the management company that owns the freehold and have an appointed board of directors who are empowered at each AGM to make decisions on routine matters. Anything more than that will have wider consultation and there are not so many of us that we can’t gather all opinions
on those. 

AdrianC Blackbushe really isn’t a problem since runway headings are perpendicular and we have little in the way of regular overhead traffic. You would only know that if you came to see it yourself, of course - chicken and egg there, I guess. 

carefullycautious

I am older and would not want the service charge or the fact that the bedrooms are off the kitchen. It is a niche market who would be interested have you tried country magazines, London Market ?

NameUnavailable

It's an impressive flat and the service charge although high is probably reasonable given the type of property and grounds.

One thing I don't get is why a share of freehold property has a 110 year lease - why weren't leases issued at 999 years (I see this quite often with shared freehold, but shorter leases).

I would say it's just a case of waiting for the right buyer. It will most likely appeal to someone older - downsizers, early retired, someone who maybe lives abroad half the year etc., who don't want the upkeep of a house but don't want a typical flat either.

If you have had it on and off the market over 2 years some people might have seen it before and are wondering if there's some problem i.e. sales fell through etc., just a thought.