Buying leasehold flat

Sparklypot

We are currently considering  buying a leasehold flat to downsize. As new to leasehold,what are the main questions to ask when viewing?
The flat has 107 years left, a reasonable service charge,no ground rent. It requires modernisation so who would the best person be to ask about renovations etc.

Any tips would be appreciated. 
Thank you
  

macman

107 years on the lease is fine, it's mortgageable.
Depends on the lease, but generally speaking you can do work inside your flat that is not structural. Anything structural would require freeholder consent.
Ask what work has been done recently under the s/c. is major work upcoming, for example, a new roof that would require additional funds?
Who is the freeholder?

NameUnavailable

You need to read the lease to see what it says about decor etc., most require the leaseholder to redecorate (paint) every 5 -10 years. Some will require permission for any internal changes (new kitchen/bathroom for example) and definitely for anything structural (knocking down a wall). Most leases will state that the floors must be carpeted, apart from the kitchen/bathroom. Windows may or may not be your reponsibility.

It's all in the lease!

Mildreds_Earrings

Sparklypot said:

We are currently considering  buying a leasehold flat to downsize. As new to leasehold,what are the main questions to ask when viewing?
The flat has 107 years left, a reasonable service charge,no ground rent. It requires modernisation so who would the best person be to ask about renovations etc.

Any tips would be appreciated. 
Thank you
  

Definitely purchase the leasehold questionnaire LPE1 leasehold questionnaire, as it will tell you all you need to know about the building, service charges, disputes, etc and more importantly, will let you know if any major works are planned to the building and the anticipated costs per leaseholder. It's the equivalent of an AA/RAC inspection before you purchase a car. Well worth the money.

All the best. 

hazyjo

A few common sense thing that might get forgotten...

If ground floor, check where the bins are stored. You don't want them outside one of your windows, or a path/shortcut running past your windows. If a communal garden, how near your windows might someone be? You want to be away the front door if it's a noisy buzzer or slam system. Also think about where people might have cigarette breaks or chat while waiting for cabs, rain to stop, etc. Think about noise from footsteps above - it can be infuriating.

If middle floors, bear in mind you'll have people above AND below and people up and down stairs.

Top floor, lots of walking if no lift. Pain with shopping, deliveries, furniture, removals, etc. Don't presume loft access is included - it's often not.

Think about what rooms are adjoining common parts and/or other flats. Think about noise levels in every room.

If no window in bathroom or kitchen, consider ventilation.

Consider storage. Often no understairs cupboard, and not all have built-in storage.

You also want to consider how maintenance/service charges are split. Sometimes flats pay different percentages, sometimes top floor is responsible for the roof, the bottom responsible for things at ground level.

Not all are allowed a gas supply.

That's it off the top of my head...

AlexMac

I'd be interested in 
- who the freeholder is
- is there a managing agent or company
- condition of common areas/ any pending or recent or likely future maintenance of things which are usually down to the Freeholder (roof, gutters, external decor., windows - as above..) but whose costs will get charged to you and other leaseholders, together with any admin costs from the managing agent or company
- if there is a "sinking fund" to cover future costs like these (doubtful, if, as you say, the Service Charge is low?)

But it's common that the Estate Agent won't know this stuff, or won't want to say in case they later get accused of mis-representation;  and in any case, you won't get dependable or legally binding replies til your solicitor asks the standard questions (e.g sends things like the "Leasehold Property Enquiries" (LPE) forms to the vendor's solicitor ).   

But I always ask anyway, as the last thing I want is to have to answer to a lazy, greedy or incompetent Freeholder!

Ultimately- the real Q is- do I like this flat!

Sparklypot

Thanks everyone. Some good points there to consider. Having just sold a house we made a mistake buying, dont want to repeat it.

mark_cycling00

The service charge will probably not cover regular internal redecoration and external redecorations.
This could easily be £100k for internal and £300k for external for a small block. Every 5-7 years. Plus the occasional elevator refurb, roof or aerial works. So if the service charge is £2000, then maybe £4,000 - £5,000 total cost per annum in reality

it's not that managing agents are evil people ripping you off. They have a duty to do these things and lots of legal stuff applies that doesn't apply when it's just your own home. 

However, it's not like being in a conservation area when it comes to refurbs and redecoration. The agent and freeholder really don't care that much what you do, so long as you follow the correct process and have the correct professionals involved. Exceptions are making big changes to the exterior but in my experience you can actually do quite a bit, so long as it is attractive. We allowed dormer windows to be converted to Juliette balconies, let people add conservatories etc. I got to vote on things through the "resident committee"

You'll never know what is and what isn't allowed, but you can be polite, friendly and understanding when you meet the agent/freeholder. They are much less likely to be weird jobsworths like council planning people.