1-bed in terraced building considerations?

MattMontreal

Hi all,

I'm hoping to buy a one-bedroom flat - my first home - soon and I'm wondering if there are any decent guides specifically for one-beds?

The main choice now is: new build vs one floor of a terraced building. Are there any across the board considerations to bear in mind?

I'm assuming both will generally be lease hold, and that you might have to worry about the roof in the terraced building, and various fees in the new build. 

Anything else?

user1977

What sort of "terraced building" if you're still talking about a flat? A conversion of a terraced house?

propertyrental

No different to buying any other leasehold property (assuming this is England).

So buy and look at the Land Registry Title.
Obtain and read the lease.
Check the condition of the property.
Check who is responsible for what (roof, foundations, surroundings if on an estate etc)
Check ground ret and service charges.

All standard stuff your solicitor will do, but some you can investigate yourself earlier on.

and see

https://forums.moneysavingexpert.com/discussion/6454776/sanity-check-buying-a-1-bed-new-build-with-estate-charges#latest

elsien

Soundproofing would be top of my list. Lived in some flats converted on the cheap that were shocking. 

snowqueen555

Apart from liking the flat itself, the most important thing is to check the ground rent, years remaining on the lease, and service charges.

rigolith

Beware of fleecehold. Does the new build have an elevator? I'm guessing that the terrace doesn't. Depending on your age and what furniture you have, that could be an issue.

AlexMac

I’d be asking searching questions about -
- The exact nature of the tenure; while it will almost inevitably be “leasehold”, whether in a big or new purpose built block, or a converted older, what’s the lease like; how long (less than 80 years is problematic)? pets allowed- with or without permission? if permission is required for you to sub-let? (Most leases are ok if you let for 6+ months but prohibit holiday lets or AirBnB)…

it also really matters to me…
- who the “Freeholder” is. A profit-driven absent Freeholder or Developer?…or.. You and the other leaseholder(s) which usually involves a non-profit “shared freehold” company with you & the others as Directors or Members. 

I have a strong preference for “shared freehold” (which is nothing to do with “shared ownership”) as that gives me greater influence and control on costs and management..

And either way…
- who actually manages, maintains and insures the structure of the building, pays for any common areas’ lighting and cleaning, and collects the Annual Service Charge (to pay for all that)?
- How much the Service Charge and any Ground Rent is  ( watch out for dodgy future escalating SC clauses) and whether the SC includes a surplus element or “Sinking Fund” - a kitty for future communal repairs or decorations. 

Every flat I’ve owned had a lease which defined how costs were shared. And usually the roof and external windows, balconies, lifts, stairwells, etc were all shared items. The best leases clarified the %share if they weren’t equally divvied up or if the flats weren’t all of identical size as was the case in one period conversion. 

The best two shared ownership set ups I was in ( both six-unit conversions of 19th Century blocks) had really well maintained buildings, very low annual Service Charges (£600-£1.3k pa) and growing “sinking funds” towards the inevitable roof and gutter repairs and the 5-7 yearly external paint jobs. That was because we (the freehold company Directors) managed it ourselves rather than appointing a Managing Agent. My mates in a new build flat of comparable size, however, were stung for £4-5k pa to a dodgy, lazy or incompetent, fee-fat Managing Agent! 

By contrast, the Council, who are the Freeholder of a couple of ex Local Authority rental flats I own, are really efficient, with SCs of under £1k pa, and a major repairs bill of only about £3-5k every ten years or so for stuff like external decorations or replacement windows. 

A problem is, Estate Agents often claim not to know any of this, and in any case, you can’t trust their answers to these kind of Qs til your solicitor gets it in writing from the vendors’ solicitor after you’ve started to buy. But be aware and chance a couple of questions; good luck

MattMontreal

Thanks all for the replies! Already very helpful!

Just to be clear: I’m looking in north and east London and what I had in mind was a 2-3 storey terraced house that had been split into 2-3 separate units. In my ideal world the landlord would live downstairs and I would be on the top floor. I would assume any non-ground rent charges would be minimal in that case, but correct me if I’m wrong there.

user1977

MattMontreal said:

Thanks all for the replies! Already very helpful!

Just to be clear: I’m looking in north and east London and what I had in mind was a 2-3 storey terraced house that had been split into 2-3 separate units. In my ideal world the landlord would live downstairs and I would be on the top floor. I would assume any non-ground rent charges would be minimal in that case, but correct me if I’m wrong there.

Any reason for seeking one where you wouldn't own a share of the freehold, but the freeholder is also a resident?

MattMontreal

user1977 said:

MattMontreal said:

Thanks all for the replies! Already very helpful!

Just to be clear: I’m looking in north and east London and what I had in mind was a 2-3 storey terraced house that had been split into 2-3 separate units. In my ideal world the landlord would live downstairs and I would be on the top floor. I would assume any non-ground rent charges would be minimal in that case, but correct me if I’m wrong there.

Any reason for seeking one where you wouldn't own a share of the freehold, but the freeholder is also a resident?

Is that typically an option? I’m new to all this.

RAS

Try reading AlexMac's reply to you?