would 2.3k service charge put you off?

PasturesNew

This one, same block, ground floor, is £282k
http://www.rightmove.co.uk/viewdetails-18394091.rsp?pa_n=1&tr_t=buy

Not as well presented but, space depending, it does have direct access to the garden and is £20k cheaper.

Liking this too at £268k http://www.rightmove.co.uk/viewdetails-18064643.rsp?pa_n=1&tr_t=buy

Both these are in competition with your friend.

Bun

We have had this recently - ie increase in service charges. Basically ours has risen from £440 to £881 in the last two years. Admittedly this includes a reasonable sinking fund for decoration in 2009, but as we are only a block of two flats it did seem extortionate. Basically for two years running the government have changed a lot of leasehold rules etc, which whilst there to protect the lessee, make it a lot more expensive to be one in the first place. All accounts now have to be done by a qualified accountant, whereas they could be done by clerks before to keep costs down. I was told the fees should stay more or less at this level now. I would ask your friend to pass this on, and the people viewing will find this in most case scenarios, not just with this flat. If no other flats are advertising the service charge, advertise on a like for like basis on rightmove, and supply the details if anybody views. On another 'positive' point, the new rules now mean that you can choose your own contractors and they can quote if the ones used previously are extortionate.
However, I would be put off if they were this high, and it included no sinking fund. We would like to upgrade to a house in a couple of years time, and my concerns about raised costs such as council tax etc will now be part (if not all) covered by this raise in fees, so there is less to keep me leasehold than before.

Generali

Flat 43 sold for £244k in September. Is that a 1 or 2 bed?

This place is on for £250k - a 2 bedder in Melville Court.

Perhaps your friend should cut the asking price.

itsgototstop

Generali wrote: »

The service charge plus also your friend is asking £300k to live in a 2 bed flat on the Goldhawk Road. I have nothing against Shepherds Bush but wouldn't pay 10 times average household income for a flat there. Plus the £10k it's going to cost me to move in!

Is there anything in the contact about the service charge and how it can change? Has the management company produced audited accounts? It sounds like either the mgmt co is making money out of the block on the service charge (not allowed???) or that the service charge was deliberately set low initially so as not to frighten buyers off.

Hi,

They can charge what they like, most owner occupiers up in arms but their hands are tied

when you see accounts, each item looks ok but for the last 2 years total cost has been 200k????

itsgototstop

PasturesNew wrote: »

This one, same block, ground floor, is £282k
http://www.rightmove.co.uk/viewdetails-18394091.rsp?pa_n=1&tr_t=buy

Not as well presented but, space depending, it does have direct access to the garden and is £20k cheaper.

Liking this too at £268k http://www.rightmove.co.uk/viewdetails-18064643.rsp?pa_n=1&tr_t=buy

Both these are in competition with your friend.

yes cheaper one has a short lease, needs 20k to extend from 67 to 99years

Doozergirl

PasturesNew wrote: »

This one, same block, ground floor, is £282k
http://www.rightmove.co.uk/viewdetails-18394091.rsp?pa_n=1&tr_t=buy

Not as well presented but, space depending, it does have direct access to the garden and is £20k cheaper.

And it has a new kitchen. I'd say the OPs friend needs to address price and, erm, presentation first...it looks a bit grubby

Service charge has certainly impacted on two decisions I've made in the the past though. I really like mansion blocks but you kiss goodbye to a nice extra portion of salary each month, and you never feel like you've got value for money. Twice we chose small period conversions with no service charge - and a garden! I would always choose to put that extra money towards the mortgage.

I think that gardener in his little staff flat is devaluing the property by more than he adds.

aah

leaseholders in a block of flats - if there are 50% of them - can take the "right to manage" and either set themselves up as a managing agent or appoint one themselves. The MA charges for this block are out of order...

itsgototstop

Doozergirl wrote: »

And it has a new kitchen. I'd say the OPs friend needs to address price and, erm, presentation first...it looks a bit grubby

Service charge has certainly impacted on two decisions I've made in the the past though. I really like mansion blocks but you kiss goodbye to a nice extra portion of salary each month, and you never feel like you've got value for money. Twice we chose small period conversions with no service charge - and a garden! I would always choose to put that extra money towards the mortgage.

I think that gardener in his little staff flat is devaluing the property by more than he adds.

yes the garderer costs alot per month, not sure how he can go???????

EdInvestor

itsgototstop wrote: »

now share of freehold

If that's the case why don't the residents get a grip? Sack the managing agents, fire the gardener, put his flat on the market, put the profits from the sale into a house account and do any major overhanging repairs, using the interest on the remaining capital to subsidise the running costs.

Fergie73

There seems to be a lot of "back scratching" involved in service charges. My sister had problems with being charged vastly more for work than it was worth - she could have called someone out the Yellow pages for about a quarter of the price. Turned out the tradesperson who did the job was a mate of the manager.

I would be put off by charges that high, definitely (not that I could afford a flat at anything like that price). To be honest, if you're paying that much in service charges, on a property that's only leasehold, the term "ownership" becomes fairly meaningless. Aren't you effectively paying £300,000 for the equivalent of renting a place (except with added risk of negative equity thrown in)? Seems like a ridiculously bad deal all round.