sitsinhedges Posted June 10, 2014 Author Report Share Posted June 10, 2014 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. The freehold is shared collectively between the leaseholders already. Doesn't that mean most problems you mention wont happen? I assume that as the tenants own the freehold collectively extending the leases would just be a paperwork exercise. I'm also assuming that the management company can be replaced by the freeholder collective if the charges become excessive? Quote Link to comment Share on other sites More sharing options...
armsid Posted June 10, 2014 Report Share Posted June 10, 2014 how will feo treat security in a flat will the lease allow it ( some councils will not let tennants have firearms on council property) this needs to be checked before you buy Quote Link to comment Share on other sites More sharing options...
Mungler Posted June 10, 2014 Report Share Posted June 10, 2014 The freehold is shared collectively between the leaseholders already. Doesn't that mean most problems you mention wont happen? I assume that as the tenants own the freehold collectively extending the leases would just be a paperwork exercise. I'm also assuming that the management company can be replaced by the freeholder collective if the charges become excessive? Yes but what about repairs, sinking funds, a structure you can't touch and so on. Also in some cases the freehold is purchased by the leaseholders who then contract out the management to a company - I saw one where the management company entered a contract with a clamping company to police parking and that didn't end well for anyone. The list is endless. If you're intent on going forward at least find out the percentage of flats that are owner occupied as opposed to rented (as B2Ls). If the block has a high percentage that are rented out then run a mile - people don't look after or respect what's not theirs. Quote Link to comment Share on other sites More sharing options...
sitsinhedges Posted June 16, 2014 Author Report Share Posted June 16, 2014 Well, going on the advice received I tried to negotiate a discount for the reasons mentioned but the vendor refused so the purchase has been cancelled. Not too worried either way. Quote Link to comment Share on other sites More sharing options...
Mungler Posted June 16, 2014 Report Share Posted June 16, 2014 Good lad. Now buy a house or worst case a maisonette Quote Link to comment Share on other sites More sharing options...
sandspider Posted June 17, 2014 Report Share Posted June 17, 2014 I had an offer accepted on a flat a few years ago. The seller said that the fittings etc. were included, which I was fine with. Then he changed his tune and tried to charge me extra for the cooker, the fridge etc. - only a few hundred quid, but I couldn't be bothered to play games, so pulled out, and the flat languished unsold for quite a while. I got a detached house a little way out for not a huge amount more. Quote Link to comment Share on other sites More sharing options...
corkycorksta Posted June 17, 2014 Report Share Posted June 17, 2014 Well, going on the advice received I tried to negotiate a discount for the reasons mentioned but the vendor refused so the purchase has been cancelled. Not too worried either way. Well done mate, if you didn't listen to Radio 4 just now (you and yours ref "are you ready for interest rate rises") then sit through it on the iplayer. Sad to listen to the many who are already underwater and likely be wiped out by the coming rate rises, it is coming and maybe even this year. As several others have pointed out flats have some major variable disadvantages. As a result flats will be the first to start loosing value if the market starts to readjust to a more sustainable levels. Consider holding off your plan to buy if you can for another year at least, use this time to try to save a bit more and watch what happens. To my mind best case scenario is that price increases will halt, more likely they will start to slide and you will get more for your money - like a small house Quote Link to comment Share on other sites More sharing options...
Mungler Posted June 17, 2014 Report Share Posted June 17, 2014 Interest rates will go up, because they can only go up. But they are at 0% in mainland Europe and the rate rise is small and there to send a message. There's never a good time to buy property so just keep looking and crack on and buy when you see what you want at the right price. Quote Link to comment Share on other sites More sharing options...
sitsinhedges Posted June 17, 2014 Author Report Share Posted June 17, 2014 Interest rates will go up, because they can only go up. But they are at 0% in mainland Europe and the rate rise is small and there to send a message. There's never a good time to buy property so just keep looking and crack on and buy when you see what you want at the right price. It's only low interest rates on savings that is causing me to look at buying another property. Cash in the bank just sits there losing value. Quote Link to comment Share on other sites More sharing options...
aris Posted June 17, 2014 Report Share Posted June 17, 2014 It's only low interest rates on savings that is causing me to look at buying another property. Cash in the bank just sits there losing value. You and everyone else. That's why the property market has gone bonkers. Quote Link to comment Share on other sites More sharing options...
corkycorksta Posted June 17, 2014 Report Share Posted June 17, 2014 You and everyone else. That's why the property market has gone bonkers. Exactly as he said. Changing my advice to crack on mate as I didn't realise you were a investor. I thought you were buying a home. Quote Link to comment Share on other sites More sharing options...
Archie-fox Posted June 18, 2014 Report Share Posted June 18, 2014 on a side note... we picked up the keys to our house a month ago, the lady who we got the house from took all the light bulbs, smoke alarms, the integral fridge,washing machine, the curtain rails the lot..she took everything that wasnt nailed down!!! cost us a extra 3k in replacing things..couldnt belive it. hate people like that, and she left us with piles of rubbish to shift.. just about got it sorted now... Quote Link to comment Share on other sites More sharing options...
aris Posted June 18, 2014 Report Share Posted June 18, 2014 on a side note... we picked up the keys to our house a month ago, the lady who we got the house from took all the light bulbs, smoke alarms, the integral fridge,washing machine, the curtain rails the lot..she took everything that wasnt nailed down!!! cost us a extra 3k in replacing things..couldnt belive it. hate people like that, and she left us with piles of rubbish to shift.. just about got it sorted now... Speak to your solicitor. Quote Link to comment Share on other sites More sharing options...
Archie-fox Posted June 18, 2014 Report Share Posted June 18, 2014 Speak to your solicitor. thought about that but that would just cost more money in fees...we had such a bad time with the solicitors when buying the house, we have just taken it on the chin really... Quote Link to comment Share on other sites More sharing options...
LondonLuke Posted June 18, 2014 Report Share Posted June 18, 2014 There should have been an agreed fixtures and fittings list. If listed to stay/go then it should become part of the exchnage contract. I have no idea on your chances or costs associated but worth a ten minute chat to solicitor to see Quote Link to comment Share on other sites More sharing options...
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