With leasehold complaints and leasehold cases on the increase,
has been put on the government to impose greater regulation on
leasehold sector, which is making two and a half billion pounds
in service charges for maintenance and repairs. The question
why is this not more regulated?
Here are a few points that must be considered
before buying a leasehold property.
1:Request a copy of the lease from the agent. A lease is a
between the leaseholder and the landlord, giving conditional
for a fixed period of time. Good agents should hold one and here
read your contractual rights. These rights will normally entitle
expect the landlord to maintain and repair the building and
common parts such as grounds, staircases and hallways.
2:Secondly, check how many years are remaining on the lease. It
harder to get a mortgage on a flat with a lease with 75 years
or below. If it doesn't have many years left, then find out how
it will be to purchase more years before buying. The cost of a
extension can be a reason for a lower offer on the flat and a
way to negotiate on price.
3:You should look closely at service charges which are payable
leaseholder to the landlord for all the services they provide,
maintenance and repairs. Service charges usually also include
of management, either by the landlord or by a professional
agent. Ask to see a copy of the service charge statement from
to get a feel of the costs. Details of what can and cannot be
the landlord and the proportion of the charge to be paid by the
leaseholder are all set out in the lease, read it very
carefully. Ask to see
the end of year annual accounts. Look at what is being spent on
building and what you are getting for your yearly service
there a reserve fund to deal with major works if required in the
if so how much? Is there a condition survey on the building?
the current insurance premium?
4:Look at the current appointed managing agent. Are they
of ARMA? Are their property managers IRPM registered? Ask
residents who live in the building what their experience has
the managing agent, are they responsive to calls? Do they
with transparency on accounts? If you have a maintenance issue
be dealt with promptly? The key thing is do your homework. The
informed you are prior to purchasing the more you will know your
as a leaseholder and be able to make an informed decision.
you have a well written lease, a good managing agent and you
understand the lease's terms along with your rights and
a leasehold property can make a great home or investment.
Call Vision Today for free no obligation advice.
Posted on Monday, October 21, 2013.