LEASEHOLD - JUST PUT ALL THE FEES ON RIGHTMOVE!!!

eddddy

The government has put regulations in place to try to deal with this - but it's up to buyers to complain if estate agents don't follow the regulations....


Most estate agents are members of the Property Ombudsman Scheme. Their mandatory code of practice says this type of info must be given to prospective buyers.

So if an estate agent doesn't provide that type of information, you can complain to the estate agent and the Ombudsman.

If you don't complain to the Ombudsman, the estate agents probably wont change their behaviour.



Here are some extracts from the mandatory Code of Practice:

4e For leasehold, commonhold or managed freehold properties you should make the seller aware that they should contact their lease administrator, commonhold association, or freehold manager to obtain material information required by potential buyers, as set out in paragraph 7k.

7k In accordance with paragraph 5e, where the title is registered at HM Land Registry, you should seek to obtain title information to verify the tenure of the property.

• In regard to leasehold properties, in accordance with paragraph 4e, you must provide material information to the consumer so they can make an informed transactional decision. Material information in respect of the lease includes, but is not limited to, the following:

• Number of years remaining on the lease;

• Amount of ground rent (*) and when payable, together with details of how this will increase over time, if applicable; 

• Rent payable in the case of a shared ownership arrangement

For leasehold, commonhold and freehold properties where the owner has a legal obligation to contribute towards the maintenance costs of a shared amenity, material information would include, but is not limited to the following:

• Amount of service charge (*), and when payable;

• Amount of any event fees (*), and when payable;

• Amount of reserve fund (*) contribution and when payable (if not already included in other charges);

• Approximate total amount of reserve fund;

• Details of any event-related fees and charges payable under the lease that are triggered by certain circumstances or events;

• Details of any other fees / charges contained in the lease, commonhold community statement or title deeds.

For all properties, material information would include, but is not limited to the following;

• Details of any unusual restrictions or covenants affecting the use and enjoyment of the property

Link: https://www.tpos.co.uk/images/codes-of-practice/TPOE27-8_Code_of_Practice_for_Residential_Estate_Agents_A4_FINAL.pdf

SallyDucati

When I sold my flat I told the estate agent to put the lease length was in the advert - it was 167 years so thought it was a selling point.  

I didn't think about putting service charge on there (ground rent was peppercorn), but agree it would be useful.  Thinking back 20 years when I bought the flat, I viewed one I really liked till I found out the service charge which was twice that of the one I bought.

Durban

I have just sold my flat and I felt it important to list the lease length , service charge and ground rent 

I didn’t want time wasters and I didn’t want the buyer to then drop out if it was a surprise to them later on 

Luckily , the lease length is fine , the ground rent and service charges are reasonable and I had 3 offers in a short space of time 

There is a flat in the same area that has been on the market for months now. The price appears ok but service charge , ground rent and lease length are not listed which makes me think they are not good which is very probably why it’s not selling and the price of the flat does not reflect this. 

My guess is that the estate agent who is part of that very well known chain beginning with C knows this and deliberately has not put these details  on the advert which really wastes everyone’s time 

Ramouth

It’s not just leases that are the problem.  Some seller seem to do absolutely zero preparation before going to market.

Sellers should be also accountable for what they put in the property information form.  We wasted a chunk of search money and solicitor fees on a property that a) didn’t own all the land being sold, b) had a septic tank with an undersized drainage field not mains drainage (as stated on PIF) and c) didn’t have building regulations sign off for an extension.  

It’s a frustrating process all round.

steve866

I am in complete agreement, it should be a requirement when listing a leasehold property, even if it caveated that buyer needs to confirm during the legal process. I remember when I was buying a flat, calling estate agents to ask the length of the lease, service charges etc. and they'd never know it and would want to 'sign me up' on their system so they could send me properties. It got really frustrating. I think my first mortgage was on my flat was around £700 a month. Some of the properties I was interested in would have had service charges of £250/month which is massive in proportion to the mortgage.

Rumana03

It is stupid but we always ring and ask before booking any viewing.
The other day we went to a viewing where the house had no central heating but this was not mentioned on the advert and the estate agent stood there and casually throws in "It will only cost about £6000 to get it installed"....honestly I felt so annoyed. Like why waste people's time???

NameUnavailable

When you're buying a lease it really should be a legal requirement to state the length of the lease, the ground rent and review terms (if any) and any regular service charge.

I don't understand how any sensible estate agent can put a value on a property without this information.

eddddy

NameUnavailable said:

When you're buying a lease it really should be a legal requirement to state the length of the lease, the ground rent and review terms (if any) and any regular service charge.

It's pretty clear that it is a legal requirement - under The Consumer Protection from Unfair Trading Regulations 2008

The problem is that a lot of estate agents break the law.


Here's a link with info from Trading Standards titled:

"Guidance for estate agents.  Information for people who are working as an estate agent - what you must do to meet your legal obligations."

Link https://en.powys.gov.uk/article/5949/Guidance-for-estate-agents

TripleH

The problem with service charges is that they can vary if work is required. I agree though that it is useful and saves time if in the advert.

I was lucky, our last flat had a peppercorn rent and reasonable service charge.

pretamang

Even if the agents do put this info in the ads there is no obligation on them to get the details right, and no consequences when this info turns out to be incorrect