sitsinhedges Posted June 9, 2014 Report Share Posted June 9, 2014 (edited) I'm in the process of buying a flat. The price was agreed a few weeks ago but since agreeing a price a couple of things have become apparent such as several double glazing units are blown and need replacing (about £200 worth), but also since we agreed a price the service charge for the flat has suddenly increased by £150 per annum which is nigh on 50% more than it was. There are other minor things I have just let go. I'm wondering whether I should try and renegotiate bearing these things in mind. What is the usual arrangements for this kind of thing happening, particularly as a high service charge could possibly affect the resale value of the property. What does the forum think? Edited June 9, 2014 by sitsinhedges Quote Link to comment Share on other sites More sharing options...
oscarsdad Posted June 9, 2014 Report Share Posted June 9, 2014 If you are not desperate drop your offer...I reduced my offer on my house by £5k after the survery was conducted...no issue and sellers probably not going to loose out for a few £k Quote Link to comment Share on other sites More sharing options...
robbiep Posted June 9, 2014 Report Share Posted June 9, 2014 If you are not desperate drop your offer...I reduced my offer on my house by £5k after the survery was conducted...no issue and sellers probably not going to loose out for a few £k Agreed. The market is nowhere near as bouyant as is being claimed. Buyers still hold the cards, and call the shots, to a large extent. Quote Link to comment Share on other sites More sharing options...
WGD Posted June 9, 2014 Report Share Posted June 9, 2014 If you are concerned about your investment and it's value the renegotiate. I would suggest though that the sums you are talking about would be taken up in lawyers fees adjusting the missives (if that's what you call them down there). Quote Link to comment Share on other sites More sharing options...
chady Posted June 9, 2014 Report Share Posted June 9, 2014 A. I take it you have not signed a contract? B. Is it new? Quote Link to comment Share on other sites More sharing options...
WGD Posted June 9, 2014 Report Share Posted June 9, 2014 A. I take it you have not signed a contract? B. Is it new? You would hope B. is a "No" if the double glazing units have blown... Quote Link to comment Share on other sites More sharing options...
sitsinhedges Posted June 9, 2014 Author Report Share Posted June 9, 2014 It's not new and I haven't signed a contract but the sale is going thru our conveyancers. I don't want to be a **** but equally I don't want to be sold a pup. Let's face it £150 a year even in the medium term amounts to a fair bit of cash that I wasn't expecting to pay. Quote Link to comment Share on other sites More sharing options...
Fisherman Mike Posted June 9, 2014 Report Share Posted June 9, 2014 I'm in the process of buying a flat. The price was agreed a few weeks ago but since agreeing a price a couple of things have become apparent such as several double glazing units are blown and need replacing (about £200 worth), but also since we agreed a price the service charge for the flat has suddenly increased by £150 per annum which is nigh on 50% more than it was. There are other minor things I have just let go. I'm wondering whether I should try and renegotiate bearing these things in mind. What is the usual arrangements for this kind of thing happening, particularly as a high service charge could possibly affect the resale value of the property. What does the forum think? Caveat Emptor...you should have noticed the failed .DGU's on your final visit. and the vendor cant be responsible for the increased management charge £150 per annum sounds quite reasonable to be honest. Take some advice from the estate agent who will most likely sound out the vendor about the Glazing units. But it sounds to me that your looking for an excuse not to proceed and have already made your mind up Quote Link to comment Share on other sites More sharing options...
Twistedsanity Posted June 9, 2014 Report Share Posted June 9, 2014 Agreed. The market is nowhere near as bouyant as is being claimed. Buyers still hold the cards, and call the shots, to a large extent. That's because you live in Wales chap , the market in the south east is as mad as a box of frogs with properties going for stupid prices and people offering £10k above the asking price just to secure them , I know this as I'm looking to buy at the moment and most estate agents won't even entertain your viewing a property unless you have a buyer for yours already , I live in a 3 bed ex council mid terraced house slap bang in the middle of a council estate in watford my house is currently worth £300k! This time last year it was worth 50k less , it will go on the market next Monday and I will have some muppet offer me over the outrageous asking price and have accepted an offer 7 days later. The estate agent told me that somebody recently asked their buyer to Pay an extra £20k above the agreed asking price as the sale took longer than 3 months and the property price had increased by that much since accepting the offer , and the buyer agreed and coughed up , bouyant doesn't come close to describing it Quote Link to comment Share on other sites More sharing options...
shaun4860 Posted June 9, 2014 Report Share Posted June 9, 2014 Look at it this way How long has it taken you to find this property? The £150 increase is £3 per week The double glazing should have been picked by your surveyor so not really the sellers fault Is it worth losing the property for what the difference is? How much do you want to live in that area? Quote Link to comment Share on other sites More sharing options...
figgy Posted June 9, 2014 Report Share Posted June 9, 2014 Get the seller to replace the blown units or knock off the cost. As for the service charge has this just gone up by that amount or were you misled by the sellers as to the correct cost in the first place. Figgy Quote Link to comment Share on other sites More sharing options...
HDAV Posted June 9, 2014 Report Share Posted June 9, 2014 Who holds the freehold? The vendor? Quote Link to comment Share on other sites More sharing options...
Penelope Posted June 10, 2014 Report Share Posted June 10, 2014 A flat with service charge is likely to be leasehold. Who holds the freehold? The vendor? Quote Link to comment Share on other sites More sharing options...
Mungler Posted June 10, 2014 Report Share Posted June 10, 2014 I say this to all my clients, some listen, some don't: If you really don't have to, do not buy a flat. Save your money or borrow more and buy a small house. Worst case buy a maisonette but stay away from flats. There's a long list of reasons I could fill a book with. If I get time later I'll have a go at listing the top 10 reasons why not to buy a flat. Quote Link to comment Share on other sites More sharing options...
RED BEARD Posted June 10, 2014 Report Share Posted June 10, 2014 I say this to all my clients, some listen, some don't: If you really don't have to, do not buy a flat. Save your money or borrow more and buy a small house. Worst case buy a maisonette but stay away from flats. There's a long list of reasons I could fill a book with. If I get time later I'll have a go at listing the top 10 reasons why not to buy a flat. that sounds like very good advice to me. also you seem to be nit picking about stuff that you new was wrong when you agreed the price. Quote Link to comment Share on other sites More sharing options...
HDAV Posted June 10, 2014 Report Share Posted June 10, 2014 A flat with service charge is likely to be leasehold. Someone owns the freehold and there can be good freeholders and bad same with management companies and watch out for increases in service charges... Is it run as a pot for when the building needs a new roof? Or will you get that bill... Quote Link to comment Share on other sites More sharing options...
Penelope Posted June 10, 2014 Report Share Posted June 10, 2014 I know, I work for a managing agent and previous had a leasehold property. Someone owns the freehold and there can be good freeholders and bad same with management companies and watch out for increases in service charges... Is it run as a pot for when the building needs a new roof? Or will you get that bill... Quote Link to comment Share on other sites More sharing options...
sitsinhedges Posted June 10, 2014 Author Report Share Posted June 10, 2014 I say this to all my clients, some listen, some don't: If you really don't have to, do not buy a flat. Save your money or borrow more and buy a small house. Worst case buy a maisonette but stay away from flats. There's a long list of reasons I could fill a book with. If I get time later I'll have a go at listing the top 10 reasons why not to buy a flat. Would appreciate that. Quote Link to comment Share on other sites More sharing options...
kent Posted June 10, 2014 Report Share Posted June 10, 2014 Yeah, not keen on flats either (too much who does what, who cant do what stuff). Heck over ten years the increase is £1500 ! Re-negotiate? sure thing IMO! Failed units can end up costing more than the glass alone as beads cannot always be replaced if broken "as they can do" as old product gets discontinued ( I should ask for the vendor to get them changed prior to exchange with receipt and guarantee going to yourself after). To be honest I should do this with all repairs rather than look at fanatical changes to the contract. You might find there has been an issue with getting replacements for those units, hence they were not done prior to sale (expect them all to go in time its just the way it goes) Quote Link to comment Share on other sites More sharing options...
arjimlad Posted June 10, 2014 Report Share Posted June 10, 2014 I say this to all my clients, some listen, some don't: If you really don't have to, do not buy a flat. Save your money or borrow more and buy a small house. Worst case buy a maisonette but stay away from flats. There's a long list of reasons I could fill a book with. If I get time later I'll have a go at listing the top 10 reasons why not to buy a flat. What he said... Quote Link to comment Share on other sites More sharing options...
arjimlad Posted June 10, 2014 Report Share Posted June 10, 2014 1. You have no control over who moves in above you. A troupe of people who impersonate herds of elephants, for example. 2. You have no control over who moves in beneath you. A troupe of people who impersonate herds of swine, for example. 3. You have no control over the exterior of your building. 4. You have no easy control over the amount of service charges you get landed with. 5. Flats are notoriously recession sensitive and will be the first things to rise in price and the first to fall in price. I would guess that there are a lot of negative equity flats about. 6. A retired busybody or plural who gets control of the management company because no-one else has got time for it can make your life hell with umpteen petty stupid rules about scheduling when you may or may not flush the toilet, for example. 7. Same person can land all the leaseholders in the stew if they mess up running the management company. 8. The management company can get struck off if it is neglected then you end up not being able to sell your flat without a great deal of expense and hassle. 9. You can end up doing everything for the management company because the rest of the leaseholders don't understand English/can't be bothered/let their flats out and live in Belize. 10. You can be the victim of someone else's lack of care & attention to security and there are usually parking issues with the shared car parks. Sorry Mungler, couldn't resist the challenge of finding ten reasons..! Quote Link to comment Share on other sites More sharing options...
Twistedsanity Posted June 10, 2014 Report Share Posted June 10, 2014 A friend owns a flat in a council block, she just got stuffed for around £15k for modernisation ! Quote Link to comment Share on other sites More sharing options...
BRNDL Posted June 10, 2014 Report Share Posted June 10, 2014 (edited) It all depends on the circumstances...if you REALLY want the property and there is genuine interest from other clients then take the changes on the chin and secure the deal. If you think the ball is in your court and you can take or leave this property then stuff it to them... I have recently purchased a house (SSTC) and knocked £30500 off the property before the surveyor has been anywhere near it. If it goes to plan I will be re-negotiating the agreed sale price in the next few days for a further reduction. I can take or leave this house. For the right price though I would like to take it. Edited June 10, 2014 by BRNDL Quote Link to comment Share on other sites More sharing options...
clakk Posted June 10, 2014 Report Share Posted June 10, 2014 we lived in a cracking flat in derby,great neighbours no issues.then one day miss druggy moved in .music all day n night front security door wedged open so scrote friends could come n go .good neighbours left more scrotes moved in .so we went from going to buy the flat to legging it asap .it,s a minefield in a block of flats ,id never have another flat.our small house was as cheap as a flat and no one above or below to pecker our heads.and no service charges either Quote Link to comment Share on other sites More sharing options...
Mungler Posted June 10, 2014 Report Share Posted June 10, 2014 (edited) Flats my top ten: 1. you *will* have a problem and a row over parking and noise 2. you have no control over your direct neighbours (left and right, up and down) as well as your indirect neighbours (i.e. all the other flats) and that includes their visitors 3. if there is no tenants association / collective enfranchisement to purchase the freehold then you will be at the mercy of any number of professional freehold companies who look to buy flat freeholds and: A - add an extra storey to the flats B - screw the residents for every penny - oh you want to paint your door that's £100 for permission, oh you have a tenant you need our permission that's £100 and so on. Also these management companies are notorious in screwing for money they are not even due- the way this works is that they levy all manner of BS charges and when you say "I've actually read my Lease and you can't charge me for that" and they then just blank you and keep adding the charges. They know that when you need to remortgage or sell you will need a clean sheet and so will just cough up. C - if the residual term of your lease ever falls below 65 ish years then it can't be mortgaged - the High street lenders won't touch it. You will then have to go through an expensive process of applying to extend your lease and paying a packet (if you let it fall below 60 years and then ask to extend the lease, the numbers spin up out of control and the calculation includes a marriage value. I digress.) 4. In a recession, if you need to sell quickly you will be selling along with everything else and there will be nothing to distinguish your flat from the next - they are all pretty much the same and the distinguishing factor will be price i.e. you will be bid down There's loads more, I can't even be bothered to keep going. Arjimlad's on the money, read his list. I was offered a distressed 1 bed flat in the London Borough of Waltham Forest that was a repo - the average price of the flats in the block is somewhere between £190k and £210k. This gaff had a lease under 60 years left and you couldn't raise a mortgage on it - the rough cost to extend the lease was ball park £25k. Also the freehold owner was a notorious chiseller - adding a door bell to the outside would end up in a formal notice and notional "fine" and so there was long term grief on the horizon. I bid accordingly at £125k which is what it's worth to me. I haven't heard if it's mine but probably not, why? BECAUSE THERE IS ALWAYS SOME IDIOT THAT WON'T DO HIS HOMEWORK AND WILL BUY IT. Here endeth the lesson. Edited June 10, 2014 by Mungler Quote Link to comment Share on other sites More sharing options...
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