Leasehold flat with Wandsworth Council as the freeholders - is this good or bad?

Peter654

I am looking at buying a leasehold flat and have found out that Wandsworth Council are the freeholders. I wanted to get people's views on whether this was a good or bad sign?

On one hand, I feel like they may be less likely to overcharge than a private company, but on the other hand I've seen stories where they badly manage properties and submit large bills.

It is worth noting that this is not a ex council house, it is a victorian house with 3 other flats in it. 

lincroft1710

I would be very carefully checking the lease and finding out what your obligations would be as a leaseholder towards contributing to the cost of repairs and improvements deemed necessary by the freeholders

Peter654

Thank you, sorry for the obvious question (first time buyer), is this something I can check via the estate agent or will I have to wait until the conveyancing solicitor review? 

lincroft1710

Your solicitor should receive a copy of the lease and review it with you.

Peter654

and is there anything I should be looking out for specifically?

thegreenone

Work done and more importantly, proposed works and have the correct notices been issued.  What's proposed in the slightly-distance future ie are WC thinking the roof will need replacing in 10 years time?

Are there any maintenance charge rises due.  What's in the sinking fund now?

Your trade-off is that Wandsworth has one of cheapest Council Tax bills in the UK so perhaps have your own sinking fund, just in case.

lincroft1710

If there are any "nasties" in the lease your solicitor should point them out. Windows come to mind, is the leaseholder responsible for maintaining and replacing when necessary their own windows or is the freeholder responsible for all the windows in the building.

theartfullodger

Talk to the other 3 leaseholders (who may live elsewhere... eg if landlords.) and see what they say.

JM68

It should be pretty much like any standard lease - if works need doing on building/communal areas then leaseholders get charged (either equally or sometimes pro rata if flat sizes differ).

The main issue with council freehold (as you allude to) is that they are not great in providing value for money when building works do need doing.  This is because they usually have a set contractor or shortlist of contractors who seem to somehow all charge way over the odds for building work.

If it were me, I would be looking at things like the state of the roof and brickwork etc. compared to similar age properties in the local roads to form a view on whether any works might obviously need to be done in the medium term.

But all period properties need upkeep and works over the years and a private freeholder might give you issues anyway when that happens.

In terms of things like responding to issues (e.g. a leak from upstairs) I imagine they would be quite quick as they usually have either a dedicated contractor or in house maintenece team for their overall estate 

Also, if you were not aware already, Wandsworth has the lowest council tax in the country so that's a bonus!!!

Cloth_of_Gold

JM68 said:

It should be pretty much like any standard lease - if works need doing on building/communal areas then leaseholders get charged (either equally or sometimes pro rata if flat sizes differ).

The main issue with council freehold (as you allude to) is that they are not great in providing value for money when building works do need doing.  This is because they usually have a set contractor or shortlist of contractors who seem to somehow all charge way over the odds for building work.

If it were me, I would be looking at things like the state of the roof and brickwork etc. compared to similar age properties in the local roads to form a view on whether any works might obviously need to be done in the medium term.

But all period properties need upkeep and works over the years and a private freeholder might give you issues anyway when that happens.

In terms of things like responding to issues (e.g. a leak from upstairs) I imagine they would be quite quick as they usually have either a dedicated contractor or in house maintenece team for their overall estate 

Also, if you were not aware already, Wandsworth has the lowest council tax in the country so that's a bonus!!!

That's not an assumption I would make. Wandsworth maybe brilliant at dealing with such things but may also be very slow and they might, of course, give priority to their own social housing stock. 

Personally, having had experience of leasehold flats I would, if at all possible, buy one where which has a share of the freehold. You may, of course, have problems with the other directors but at least they have a vested interest in maintaining the property properly and in keeping costs as reasonable as possible.

theartfullodger

There us no such thing as a standard lease. 

Or prove me wrong (again!).