Leasehold bomb shell, now what.

w12ee3e

So I've been in the process of buying a one bed leasehold flat, and I'm feeling as if I've been somewhat stitched up.

Firstly, I was told by the agent that the annual service charge was £300 paid in part monthly. Now my solicitor has come back and told me that this isn't the case at all and is actually £1700 annually. I know the first amount seems low but I feel irritated that I've been mislead. Does this seem high/unreasonable for a mid 60's, ex-local authority 1 bed flat in a maisonette. Does this seem high, will it put off potential onward buyers when I come to sell?

Also, there's a list of fees I'm liable for if I want to make any alterations by the management company. Simple is '£120' (the front door is in bad condition/ancient) then an additional £120 is due to have that 'surveyed'

Then there's the double glazed windows which are in bad condition / need servicing. The hinges have all worn so they're very drafty. I suspect that the management company is liable for this and I guess they've not bothered.

None of this was ever disclosed up until this point. All the indicators seem to tell me RUN away at this point. Any thoughts? I think I'd be mad to especially considering I'm able to borrow more money and buy something bigger/better.

I'm down on searches £200

Home buyers report £420

Time wasted waiting for the tenant to vacate.

Feeling very disillusioned. Probably best cut my losses?

dimbo61

Run run run

All of the above and a tenant as well.
I would complain to the Estate agents about being lied too and ask which redress scheme they belong too.
I am willing to bet £20 they never put the service charge is £300 in writing Did they ? 

w12ee3e

dimbo61 said:

Run run run

All of the above and a tenant as well.
I would complain to the Estate agents about being lied too and ask which redress scheme they belong too.
I am willing to bet £20 they never put the service charge is £300 in writing Did they ? 

You get to keep £20.

GDB2222

£1700 service charges for an LA block is just sooo cheap. Every few years, they will spend £5-20k on something big. 

There's no such thing as ex-LA. This is an LA flat, and as a leaseholder they will spend your money like water.

w12ee3e

GDB2222 said:

£1700 service charges for an LA block is just sooo cheap. Every few years, they will spend £5-20k on something big. 

There's no such thing as ex-LA. This is an LA flat, and as a leaseholder they will spend your money like water.

That's how much I have to pay though, per year (it's not divided between the whole 'block?') Is it still cheap? This is a small, one bed flat.

propertyhunter

You said yourself you can borrow more and buy bigger/better - so that says it all. Your heart isn't into it. Best to lose £620 rather than buy a flat you don't like and will cost you hundreds of thousands. You'd come home everyday resenting your surroundings for saving £620.

I had a service charge of 1800 for a 2 bed flat, 6 years old at that time. My fees for changing things/getting permission was about £70. It's one of the things you have to accept with leasehold. 

Slithery

That's how much just the service charge will be, yes.

But every few years the LA will come up with 'major works' that need doing to the property like replacing all of the windows, replacing the roof etc of which the cost isn't included in your service charge and will be shared with all the leaseholders. For example if they decide that the roof needs replacing at a cost of £300k and you are one of 10 leaseholders then you'll have to come up with £30k to pay your share.

LA's never usually get competitive quotes as they're not the ones who end up paying also government contractors usually have far higher costs.

GDB2222

w12ee3e said:

GDB2222 said:

£1700 service charges for an LA block is just sooo cheap. Every few years, they will spend £5-20k on something big. 

There's no such thing as ex-LA. This is an LA flat, and as a leaseholder they will spend your money like water.

That's how much I have to pay though, per year (it's not divided between the whole 'block?') Is it still cheap? This is a small, one bed flat.

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO! 

That's the usual service charge, unless there are 'major works'. Then, they add on a few thou, or tens of thou. Maybe, you'll be lucky, and it will just be a few thou every few years.

I have £30k to pay for fire safety works, and this is for a block without any cladding!  They have decided to add a sprinkler to all the flats, even though the fire safety rteport said it was not needed.

bouicca21

That service charge is higher than I pay for a 3 bed flat.  But mine is a small block, no lift. Lifts for reasons I do not entirely understand seem to break down and require expensive repairs regularly.

koalakoala

Walk away now

Slithery

bouicca21 said:

Lifts for reasons I do not entirely understand seem to break down and require expensive repairs regularly.

They don't tend to break down unless they're misused, it's just that they need expensive maintenance and certification schedules that have to be legally adhered to to be able to carry people.