Property related question for UK ppl....

[seamusuk]

Hey Guys

Im contemplating getting my "foot on the ladder" and have seen a pretty affordable flat that initially ticks all the boxes- newly refurbed 23ft lounge/diner(so loads of Hoover space- along with a nice beige carpet so regular hoovering would be essential ,stunning kitchen etc .

My question is this- its share of freehold as opposed to the more usual leasehold- does anyone here own a flat like this?. The main thing I want to know is how repairs to the building work- I know all the flats contribute but is this amount split between everyone on an equal basis and is there normally a formal document that confirms this and also what happens if someone refuses to pay?

Any help is apreciated!

Cheers
Seamus

 

[sajid6952]

maintenance to the building....

Not sure if this is what you mean Seamus but my ex's sister has a flat in Gillingham and she has to pay an extra maintenance charge which covers all communal areas and the building and it's a regular monthly payment - as do all the other residents although I believe the place she is in is leasehold not freehold.

I have heard when I was looking at this sort of property for myself some time ago that you can pay up front for a lump sum maintenance contract (but I assume this is on the proviso that everybody agrees on using a contractor) for any building repairs should the need arise but of course it depends on whether they are new builds, recently bought, refurbed, decision of the outright developer etc. Seemed a very bizarre way of doing things to me!

I take it that it's one of these where you will own for example 1/10th of the building outright...?

I might be going on about something totally different here but hey ho, theres my piece

 

[sajid6952]

Oh I missed a bit.....

There should be some form of contractual agreement regarding the financial responsibility of all shared owners contribution to building repairs I imagine (if there is no other grand plan in place)- although check for loopholes regarding location of the building work if an area is affected - say for example a bit of damp proof course or some pointing needs attention that only affects the area of the building within your jurisdiction then its likely that you will be responsible for the full cost of the repairs - which I suppose is fair...

 

[robm]

Hi Seamus

All my flats have been share of freehold which is much better than plain old leasehold.

Basically the owners at some point must have acquired the leasehold. Which means they have to run their own affairs and have a lot more say in what happens. Lease landlords can be con artists charging huge amounts for very little maintenance.

However, do your homework and find out if the company is run well. My first flat was run by the residents (12 in a purpose built block)! Mostly fine but they did try and cut corners to keep the cost down. Things like mowing the lawn rotas were set up which I didn't fancy much, especially as only the men did it! Also there was a bit of a struggle with old traditional residents and younger ones who wanted to have more free time and spend a bit more! You can also find the little Hitler residents who can be a nightmare, making up rules.

In my current and previous flat the residents chose an outside company to do the management. A bit more expensive but well worth it. This for me is the ideal, maintenance you don't have to worry about too much but you also have a choice as residents if things aren't done properly.

You still have to consider the length of the lease even in share of freehold but the solicitor should check this. Just check there are no big projects coming up or if there are any disputes.

Buying is definately worth it, as long as you do your sums (see a finance advisor in an estate agent that does not just deal with one company) to check you are aware of all the other costs.

I wish you luck, it's a good buyers market!

Rob