Do you own a flat?

[clayspaniel]

Just wondering if flat owning (with mortgage) is as straightforward as house owning - service charges, leaseholds etc? Was wondering if it could end up being expensive.

It can be expensive and it can be complex. Your service charges/major works funds could increase massively. yoi may have to extend the lease. I have a few friends who have come unstuck.

Although these fund pay for most of your maintenance you have less control over it than with a house. Ie you will be charged for replacement windows when they are being done, not when you can afford it/ decide they need doing. You may have to pay for ie, a new lift (shared out between leaseholders)
Service charges cover gardening, cleaning etc. if you had financial difficulties as a house owner you could cut back on this. Not as a leaseholder. You will also have to pay when cost of services increase.

There are many things to consider and you need to thoroughly investigate before buying.

What thelush says is right, but it does rather depend on how the property is managed so can vary from flat to flat.

For example, leaseholders can buy the freehold collectively and decide to manage the block themselves. This means more control over what gets done when, lower charges because you don't pay a management company, and it's easier to extend leases. The downside is you have to put the time in managing things and have a clear process for doing things. Steer clear of any flat that doesn't have clear management processes.

It's not particularly complicated, and doesn't have to be expensive, but in my experience can be a bit more hassle than house owning because you have to take other flat owners into account.

The main thing to find out is when the roof was last looked at.

study the lease carefully, how much can they put the maintenance fee up per year? Are you allowed pets, bikes in your flat, to let it out (if needed). Is insurance included and what does it cover. Theres a lot of potential for messyness and expense.

Yep...i underestimated the service charge in my last flat. Doubled more or less in the six years I lived there from £62 to around £120 a month. Then in year six they wrote to say there wasnt enough money in the fund to paint the building exterior so they needed £500 from each leaseholder. Didn't realise it was my responsibility to ask for the accounts each year and monitor it myself. Its hard as others have said when there are other leaseholders who maybe don't care so much or aren't as interested in finding a better management company. I don't miss it and glad I have a house now.