£10k Major works charge!

Mark300zx

GDB2222 said:

 How many flats in the block are leasehold and how many tenanted?

There are six flats in the block up to the second floor, 50% are leaseholders and 50% council.

Mark300zx

AdrianC said:

Mark300zx said:

Bought an ex-local authority flat and the council want to spruce up the exterior, it is a block of six flats, over three floors the repairs are extremely minor with some minimal painting, they want to lighten my wallet to the tune of £10k. Are there any procedures or appeals I can lodge to look at this and try to reduce this highly extortionate penalty?

What stage is it at?

Have they completed the s20 consultation, had quotes in, and selected that supplier as offering the best value?

It is at the formal notice stage where they have just given the preliminary letter out?

Crashy_Time

eddddy said:

Mark300zx said:

Bought an ex-local authority flat and the council want to spruce up the exterior, it is a block of six flats, over three floors the repairs are extremely minor with some minimal painting, they want to lighten my wallet to the tune of £10k. Are there any procedures or appeals I can lodge to look at this and try to reduce this highly extortionate penalty?

If your contribution is over £250, your freeholder will have to do a 'Section 20 consultation'. 

You will get the opportunity to comment on and challenge the proposals during the consultation. Realistically, objections like 'I can't afford it' probably won't work. It needs to be based on things like the wording of the lease, the condition of the building, the choice of contractors, etc.

More info: https://www.lease-advice.org/advice-guide/section-20-consultation-council-other-public-sector-landlords/

But unfortunately, big bills like this tend to be a feature of flats with a council freeholder. I think that's a major reason why ex-LA flats tend to be relatively cheap - because you often have to pay large service charge bills. 

What happens if you genuinely can`t afford it? All the stats I have seen about savings rates etc. say most people don`t have 10k lying around for emergencies?

NameUnavailable

Crashy_Time said:

eddddy said:

Mark300zx said:

Bought an ex-local authority flat and the council want to spruce up the exterior, it is a block of six flats, over three floors the repairs are extremely minor with some minimal painting, they want to lighten my wallet to the tune of £10k. Are there any procedures or appeals I can lodge to look at this and try to reduce this highly extortionate penalty?

If your contribution is over £250, your freeholder will have to do a 'Section 20 consultation'. 

You will get the opportunity to comment on and challenge the proposals during the consultation. Realistically, objections like 'I can't afford it' probably won't work. It needs to be based on things like the wording of the lease, the condition of the building, the choice of contractors, etc.

More info: https://www.lease-advice.org/advice-guide/section-20-consultation-council-other-public-sector-landlords/

But unfortunately, big bills like this tend to be a feature of flats with a council freeholder. I think that's a major reason why ex-LA flats tend to be relatively cheap - because you often have to pay large service charge bills. 

What happens if you genuinely can`t afford it? All the stats I have seen about savings rates etc. say most people don`t have 10k lying around for emergencies?

Ultimately your freeholder can issue legal action to forfeit your lease, basically they get ownership and you end up on the street.

Annisele

NameUnavailable said:

Ultimately your freeholder can issue legal action to forfeit your lease, basically they get ownership and you end up on the street.

Or, if the flat is mortgaged, the lender might pay the £10k to protect its own security then demand the leaseholder repay that £10k plus an amount to cover the lender's costs.

If the leaseholder can afford the additional borrowing, the likely most likely result is that the mortgage will be increased by that amount. But if the leaseholder can't afford it, then it might be the lender that repossesses (rather than the freeholder that takes legal action re forfeiting the lease). Ultimate outcome is the same though; if the leaseholder can't afford it they will lose their flat.

NameUnavailable

Annisele said:

NameUnavailable said:

Ultimately your freeholder can issue legal action to forfeit your lease, basically they get ownership and you end up on the street.

Or, if the flat is mortgaged, the lender might pay the £10k to protect its own security then demand the leaseholder repay that £10k plus an amount to cover the lender's costs.

If the leaseholder can afford the additional borrowing, the likely most likely result is that the mortgage will be increased by that amount. But if the leaseholder can't afford it, then it might be the lender that repossesses (rather than the freeholder that takes legal action re forfeiting the lease). Ultimate outcome is the same though; if the leaseholder can't afford it they will lose their flat.

Might is the word. I had a neighbour who was threatened with forfeiture and the mortgage company didn't want to know. She was in real danger of losing her home as well as still having the debt to pay - her family managed to get the money together for her to pay the freeholders costs but she then had to sell the flat pronto.