Buying my first flat has turned into a nightmare. Am I making a big mistake with a leasehold?

dills18

Hi,

This is my first thread on this forum and I have found it interesting reading some others similar stories on here.

For some context, I am 23 years old and sadly lost my dad last year. Earlier this year we sold his house- trouble free. Which meant that, at such a young age, I find myself in a position to get on the property ladder mortgage-free. A one-bed flat is all I can afford in the area which I live.

It has now been 27-weeks since my offer was accepted back in February and I still haven't moved in to the flat. My rental accommodation had ran to the end of its tenancy and if I stayed I'd have to have renewed for 12-months which, when i'm buying a property, wasn't an option. Short term lets in the area I live are extortionately priced. So I now find myself staying with a friend and have been for the past 5-weeks, which is not ideal. 

I am so surprised at how long this process has taken, with no end in sight. I knew flats and leaseholds in general take longer to complete but surely 27-weeks is a very bad case.

I am using the estate agent's recommended solicitor- and I shouldn't have done (after having a read of the most recent Trust-pilot reviews) . My solicitor is un-communicative with me and every time I ring, I'm either re-directed to a colleague or, when I do get through to her, i'm grumpily told "there's nothing more I can do". I write detailed emails to her and all I get back is one-line "Will get back to you". Am I honestly meant to be paying for this? I sense no urgency with her when i'm desperate to move.  The conveyancing solicitor I used for my dads house was fantastic and there was a third party company in place to liaise between all party's to "keep things moving"- which they did!

At this point in time I feel like it's too late to change solicitor- but I also think the service I am paying for is un-reasonable. Can you contest the solicitor fee's or have they got me in a legal deadlock?

The flat purchase is not progressing because the head-lessor of the flats, a management company, have not yet issued a 'Deed of Covenant'. This has only just been brought up by my solicitor, whereas I feel this should have been brought up months ago considering this is where all time is being wasted- surely she should have known this? 

I am now having serious doubts about the whole situation- I am frustrated and very stressed. The more I learn about management companies online the more I don't want to be a part of them. The fact that there are 2 leases for the flat- 1 for the flat and 1 for the allocated car parking space, is also giving me a red-flag. I fear in the future this will leave me financially constrained. And this process has taken me so long- I'd hate to do it again in future if I ever sell.

This has turned into a nightmare- I have already spent so much money on searches and surveyors that I feel it's too much of an investment to back out. Especially as contracts were exchanged many weeks ago.

I feel not my solicitor, nor the estate agent are guiding me through this at all. No return calls. No help. No nothing.

What are your guys thoughts on my situation? Specifically the solicitor issue and the leasehold situation in general. Should I abandon my efforts and get into mortgage debt with a freehold instead? Any help would be so much appreciated as I feel ostracised by pretty much everyone at this stage.

Dylan   

NameUnavailable

What is the deed for exactly?

El_Torro

You say that contracts have been exchanged. If this is the case then you already have a date for completion, which is legally binding for all parties. Do you mean that contracts have been signed? I’d be surprised if you’ve exchanged before everything is in place. 

Either way it sounds like you’re pretty far along and you’re almost there. If you’re happy with the property I’d persevere, since starting again, even with a freehold, will take months. 

Regarding leasehold in general, I have only ever owned flats, which most of the time are leasehold. Some management companies aren’t terrible, some are. One thing’s for sure though: some leaseholders will constantly complain about the management company regardless of how good or bad they are. Personally I’m happy with the arrangements I’ve had in flats, I have no burning desire to move to a freehold house any time soon. If you want to live in a house instead of a flat that’s a separate issue. There are pros and cons to both. I wouldn’t worry too much about dealing with management companies if your preference is to live in a flat.

RedFraggle

Flats and associated parking (including garages) are quite commonly held separately. That wouldn't concern me. 
You say you've exchanged contracts, are you sure because a completion date is usually set at that point (unless the vendors onward purchase is a new build). 

dills18

El_Torro said:

You say that contracts have been exchanged. If this is the case then you already have a date for completion, which is legally binding for all parties. Do you mean that contracts have been signed? I’d be surprised if you’ve exchanged before everything is in place. 

Either way it sounds like you’re pretty far along and you’re almost there. If you’re happy with the property I’d persevere, since starting again, even with a freehold, will take months. 

Regarding leasehold in general, I have only ever owned flats, which most of the time are leasehold. Some management companies aren’t terrible, some are. One thing’s for sure though: some leaseholders will constantly complain about the management company regardless of how good or bad they are. Personally I’m happy with the arrangements I’ve had in flats, I have no burning desire to move to a freehold house any time soon. If you want to live in a house instead of a flat that’s a separate issue. There are pros and cons to both. I wouldn’t worry too much about dealing with management companies if your preference is to live in a flat.

Thanks for your response. I should correct it to say contracts have been signed- not exchanged so there is no completion date set that is legally binding. It’s good to hear you have good experiences with management companies in the past. My worry with them is getting footed with a ridiculous bill for general upkeep of the building. I’ve read stories online of companies charging thousands of pounds to under leases for minor things like paint work. Have you ever come across such a thing?

dills18

RedFraggle said:

Flats and associated parking (including garages) are quite commonly held separately. That wouldn't concern me. 
You say you've exchanged contracts, are you sure because a completion date is usually set at that point (unless the vendors onward purchase is a new build). 

Thanks for the response. My estate agent did say that it was a common thing to do, but they also said it’s usually to squeeze more money out of you cause you’re effectively doing things twice over. If I ever wanted a lease extension (it’s a very long lease so not likely) I’d be worried with a big legal bill. 

I should correct it to “signed contracts” exchange hasn’t happened and no completion date set.

dills18

NameUnavailable said:

What is the deed for exactly?

The document that makes me acknowledge the lease terms in the lease. 

There are some other things the management company required, such as becoming a shareholder too.

user1977

dills18 said:

RedFraggle said:

Flats and associated parking (including garages) are quite commonly held separately. That wouldn't concern me. 
You say you've exchanged contracts, are you sure because a completion date is usually set at that point (unless the vendors onward purchase is a new build). 

exchange hasn’t happened and no completion date set.

In which case it's completely irrelevant whether or not anything has been signed at this stage.

dills18

user1977 said:

dills18 said:

RedFraggle said:

Flats and associated parking (including garages) are quite commonly held separately. That wouldn't concern me. 
You say you've exchanged contracts, are you sure because a completion date is usually set at that point (unless the vendors onward purchase is a new build). 

exchange hasn’t happened and no completion date set.

In which case it's completely irrelevant whether or not anything has been signed at this stage.

Thanks for clarifying- I had thought that if I’d signed that’s it. 

user1977

dills18 said:

user1977 said:

dills18 said:

RedFraggle said:

Flats and associated parking (including garages) are quite commonly held separately. That wouldn't concern me. 
You say you've exchanged contracts, are you sure because a completion date is usually set at that point (unless the vendors onward purchase is a new build). 

exchange hasn’t happened and no completion date set.

In which case it's completely irrelevant whether or not anything has been signed at this stage.

Thanks for clarifying- I had thought that if I’d signed that’s it. 

No, the signed docs just sit on your file until whenever exchange is ready to happen. Doesn't matter whether you sign 5 months or 5 minutes before exchange.

NameUnavailable

dills18 said:

NameUnavailable said:

What is the deed for exactly?

The document that makes me acknowledge the lease terms in the lease. 

There are some other things the management company required, such as becoming a shareholder too.

Shareholder? It sounds like it is a shared freehold - if so that's a good thing, or possibly just a Right to Manage company (also good). Can you share more info?

What is the lease length? Ground Rent? Maintenance charge?