Things I need to ask about a leasehold property.

[SquinkiesRule]

We have seen a lovely flat that would suit my Mums needs as she ages it's in a lovely Art deco building and has big rooms.
Only thing is they are all leasehold.
The only thing I know about leasehold is that you pay an annual ground rent. I know I need to ask how long is left on the lease, but what else do I need to know?

Stay a away from leasehold property. My DSis has just had a horrendous time trying to extend her lease so that she can sell her place. The leaseholder is a shark, and it cost her an arm and a leg.

how long is the lease?
who owns the freehold (a company, private person, a trust?)
what is included (insurance? maintainance/cleaning of communal areas)

Who manages the building day to day and when there are problems ? What does ground rent cover and how often re communal areas redecorated and cleaned. What other charges may apply and what if something major needs doing like roof or windows . Is there a fund form the ground rent or do individuals need to pay at the time. Are there any restrictions such as floor coverings, parking, noise, subletting etc

That's not always the case. Flats are generally leaseholds so if it's a flat you're definitely after you're likely to have to have a lease. If the lease is less than 80 years it's worth asking that the seller has the lease extended as part of the purchase conditions. Many blocks also come with a share of freehold which would be good.

Staying away from leasehold properties isn't an option if you can only afford a flat. I've always had leaseholds.
Go to www.lease-advice.org/. and have a look at their advice guides. They are a free service and provided legal assistance to my neighbour in a legal dispute. He won, and tens of thousands were at stake. Didn't cost him a penny.

I would also say, get a very good conveyancer - purchasing is not an area to cut corners, as leases need to be read very carefully. Ours had one landmine in, the importance of which we had completely failed to take on board. Actually, my solicitor did point it out, but I didn't absorb the importance of it.

Leasehold is fine, but you do need to check the length of the lease in relation to the value of the flat, and it's also a good idea to check how repairs are not only paid for, but also decided upon. Much bitterness occurs here because some residents have more money than others, and insist on quite lavish levels of repair, whereas others would be inclined to manage for another year with slightly shabby paintwork (for example). We do have a rough "majority vote wins" system, but I think legally the head leaseholder, where one exists, or freeholder has quite a lot of power to insist on repairs that they feel they can prove are necessary.
As others have said, share of freehold is definitely the way to go if you can.

Sorry, I should have been clearer - The Leasehold Advisory Service isn't only about disputes, they just have a range of guides to explain leaseholds and what kinds of things you need to be aware of!

Ok.
How much ground rent and service charges are annually, what's included, what sort of reserves they have. Look at the building - does it look well maintained? Is there anything growing in the gutters? Where are they in their internal/external redecs cycle? How about a fire safety system? What's the lift like? Lifts alone cost approx £100k each to replace...
Has the block/management company been subject to any sort of LVT? Was it justified?
Who has control - is it a RMC, a freeholder, a freehold company (OM Peverell, et al) a RTM Co? Freeholders are the most difficult to oppose if you're trying to get something done. A RTM Co means that a) it's probably more owner occupied (a good thing) and b) there are proactive residents there, trying to look after their block.
How long is the lease? Anything under 80 years is subject to a 'marriage value' premium when you come to extend.

Btw - a share of freehold does not mean you don't have a lease, you're still subject to leasehold terms. It just means you have one equal share in the company who owns your freehold (like all the other leaseholders do).

I knew I could count on all of you to point me right.
A flat isn't my first choice but stairs re becoming a problem for her. The bungalows we've looked at were awful and tiny rooms, or falling down. This is ground floor, a few steps to the front entrance, lobby and her front door and also all the flats have a door from their kitchens down to the rear entrance and more parking spaces.
I'll make a list of things I need to ask from here. I would be nice if it was managed by the residents. It looks like it's in good shape, two blocks next door to each other all looks alike so I think one management company for both. Hoping to go for a viewing early in the week.

I think it's great when residents have formed a Right To Manage company (RTM) but in anything larger than a converted house, it's important that they employ a managing agent to set the agenda, decide what work needs doing, tender for quotes etc otherwise it all disintegrates into bickering about whether the stairs really do need recarpeting or whatever. Ditto share of freehhold.

Ask if any major works are planned for the building? Are residents allowed to let out their flats (this could be good news for your mother in the short term as it will imply her neighbours are quite settled but will mean that selling the flat on is more difficult)? Finally, if she is on the ground floor and close to parking spaces, is she likely to be disturbed by car noise (visit at different times of the day to see if there is any noise from neighbouring flats). Many 1930s flat have a centralised heating system included in the service charge so that's worth knowing about.

Squinkies -

Squinkies - sorry posted too soon.

I think I know where the flat is that you're talking about, the description of the buildings is identical to ones I know near me. If you want to pm me with the location, if it is the one I'm thinking of, I can give more info on those specific flats.

If you've never bought leasehold before I strongly recommend the Leasehold Advisory Service. Their service is free and impartial. It's not a substitute for your own solicitor but they will tell you what questions to ask and how to avoid common pitfalls.

When moving an elderly parent in, I would also think very carefully about what happens when you need to move them out. For example, restrictions on (or charges for) subletting might sound good at the beginning, but think about how it might affect you eg in ten years if your mother needed to move into residential care and there were lots of barriers to getting a tenant in to help with care fees. Problems with this are more common in specialist retirement leasehold but there are occasional problems in standard leasehold too.

The easiest way of understanding leasehold property is not to think of it as buying a flat but buying the right to live in a flat for however long the lease is. The freeholder is the owner and if you want to do anything more than live in it - alter it structurally or its external appearance, repair the fabric of the building etc - you will need the freeholder's (sometimes called the landlord) permission and you may be charged for that.

Found out the lease is 999 years and is 35 years in.
Ground rent is £5 a year and monthly fee is just under £50. Need to find out what is covered in the £50 a month and what happens when major work is needed or planned. How often the ground rent and monthly fee can go up and by how much.
We are viewing on Wednesday, only done a drive by and peaked about outside, garages are underneath.

Oh tenants are allowed, theres one living in the flat.

That's a perfect lease, can't be any better frankly.