Buying a leasehold property - what should we be aware of?

[Snozzlemaid]

Ds is looking to move out and is hoping to buy somewhere.
He's lucky enough to have a deposit and he knows how much he can get for a mortgage.
His budget restricts him to a flat or apartment which he's happy with.
However dp is cautious about him buying a leasehold property.
Can anyone explain things to be aware of? We've only ever bought freehold so have no experience of this.
Dp is always cautious about anything and I feel he's concerned for no reason. Millions must own leasehold properties so it can't be that bad?
Ds is happy with the leasehold set up but we want to make sure it's right for him.

Check the length of lease and any terms for sharing costs. I've had leasehold for 12 years and just selling it now to buy freehold. It doesn't have to be forever but it's a great first step onto the ladder.

Here's a few things to consider:

• length of lease
• any recent section 20 notices
• cost of ground rent and service charge and how they are contracted to increase - particularly onerous ground rent increases
• who is the management company?
• how do they actualize the service charge each year?
• is there a sinking fund?
• noise issues - how well soundproofed is the building?
• EWS1 is the biggie at the moment but maybe do a bit of research into PAS 9980 although it's not current regs

A lot of this your conveyancing solicitor will look for as standard but some the agent may have answers to.

Find out if the majority of the block of flats are owners or not. I would be very wary if they are not owners. Also ask to see regular maintenance and repair costs over last 5 plus years as well as service charges. Plus obviously length or lease and renewal costs. All these costs wary so much depending on who holds the lease. It can be horrendous and can be minimal costs.

Thanks for the info all. Plenty for us to check out and read up on.

@OneRingToRuleThemAll

Check the length of lease and any terms for sharing costs. I've had leasehold for 12 years and just selling it now to buy freehold. It doesn't have to be forever but it's a great first step onto the ladder.

This is exactly my thought. It's not forever but would be a great step on the property ladder for him. His girlfriend is as uni and won't be in a position to look at buying a property anytime soon so this is the best option for him to get his own place.

Also look at the condition of the windows/ lift/ roof as these are likely to be the bigger communal repair costs. So a 1960’s block with original windows is going to eventually cost more than a 1995 building without a lift etc