The ground rent issue

Miranda25

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MultiFuelBurner

The golden rule imo is.

If you can afford a house rather than a flat then buy the house.

Flats are just so much of a minefield to purchase and own and many don't realise they have bought a bomb until it comes to sale time.

bouicca21

Share of freehold is not quite as good as it’s cracked up to be, since how well it works depends on how well the owners work as a team.  As for checking the lease before viewing, I find that rather odd, I’d much rather ‘waste time’ on a viewing and get a feel for the location and layout.  Also the owner might (should) have a copy of the lease to show you.  You will need to check it not just for ground rent clauses but for other clauses that you might find onerous - whether or not you can keep pets or rent the place out, for example.  The owner will also be able to show you the service charge demands.  A copy of the lease can be downloaded from the Land Registry for a fee.

Buying a property is not just about money/investment. It is about having a home.  

MSE_ForumTeam5

Miranda25 said:

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Or how can I complain to moderator?

If you've received a PM you think breaks our rules, you can send a screenshot to forumteam@moneysavingexpert.com 

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JM68

Estate agents often don't know how much the ground rent is and rarely would they know the review period and terms.  You could ask them to find out before viewing, and the vendor would normally know?

Rip-off ground rents are pretty much a thing only on modern new builds (last 15-20 years).  If you look at flats older than that you probably won't have any issues (and you usually get better build quality and soundproofing).  Ours is a 1930s block and the ground rent goes up by £25 every 25 years to a maximum £100 pa.

The issue with less than 80 years on the lease is it is (more) expensive you try and extend and also harder to sell for this reason.  When we were looking for flats we wanted at least 110 years on the lease so it would be over 100 years when we plan to move next. 

Some people are fine with shorter leases if that is priced in to the sale price.  But we refused to view several with 80-something years left where price did not reflect the costs we would incur to extend.

Miranda25

MultiFuelBurner said:

The golden rule imo is.

If you can afford a house rather than a flat then buy the house.

Flats are just so much of a minefield to purchase and own and many don't realise they have bought a bomb until it comes to sale time.

My options are:

1. To buy a house in less desirable area.
2. To buy a flat in nice area (where I lived for 5 years) but cannot afford a house in that area
3. Do not buy anything and continue saving - but is it really an option as inflation is eating my money on savings accounts?

What would you do?

MultiFuelBurner

I would buy a house asap. Never regretted making that decision. Yes the first three years were tough but worth it.

Far too many pitfalls with flats

Miranda25

bouicca21 said:

Share of freehold is not quite as good as it’s cracked up to be, since how well it works depends on how well the owners work as a team.  As for checking the lease before viewing, I find that rather odd, I’d much rather ‘waste time’ on a viewing and get a feel for the location and layout.  Also the owner might (should) have a copy of the lease to show you.  You will need to check it not just for ground rent clauses but for other clauses that you might find onerous - whether or not you can keep pets or rent the place out, for example.  The owner will also be able to show you the service charge demands.  A copy of the lease can be downloaded from the Land Registry for a fee.

Buying a property is not just about money/investment. It is about having a home.  

I do not really need to get a feel for the location as I already live in that location for 5 years (renting).

"Buying a property is not just about money/investment. It is about having a home." - I agree with you. But I am foreigner, not sure if I would like to stay in the UK forever.
That's why so important for me if I can sell it quickly in the future.

I do have a property back home which I bought before coming to the UK. So I know about the excitement of having your own place which you call a home )

Miranda25

MultiFuelBurner said:

I would buy a house asap. Never regretted making that decision. Yes the first three years were tough but worth it.

Far too many pitfalls with flats

you would buy a house in less desirable area instead of buying a flat in area you really like?

MultiFuelBurner

Miranda25 said:

MultiFuelBurner said:

I would buy a house asap. Never regretted making that decision. Yes the first three years were tough but worth it.

Far too many pitfalls with flats

you would buy a house in less desirable area instead of buying a flat in area you really like?

500% yes I would never start property buying with a flat over a house.

Plus you budget is decent enough to be on a mainline in with lots of posh amenities.

But everyone is different. What you seem to be unable to do is make your own decision like another thread maker here that has £174k in the bank but can find a property.