leasehold questions

[helpmechooseahouse]

Hi FTB here,

Recently viewed some lovely Georgian and Victorian converted leasehold flats but have no idea what to watch out for/ask?

Some of the communal areas looked slightly rundown. How do you know whether you're going to get screwed with huge repair bills or useless management companies?

It seems like the best option for us for space/money but I'm a bit daunted as I don't understand it?

When is the soonest you can read the lease? We can't afford to pay solicitor fees to pull out again (freehold house fell through)

Any tips please?

Youll find out about planned major works as part of the conveyancing process, also whether there’s much money held in a “sinking fund” which is basically a rainy day fund for essential works.

You could ask the agent if the vendor can supply a copy of the lease ahead of making the offer, or download it yourself from the land Reg.

Besides reading the lease, you also want to find out what the service charges have been over the past few years.

Bear in mind, though, that the situation with managing agents can change. I used to live in a place where the freeholder managed it himself and the fees were low. After a few years he became ill and then brought in agents who were <ahem> problematic.

Ask the EA who the managing agents and the leaseholders are, and then try to investigate them. I am aware of one FB group for people who own properties managed by a particular MA, and there are some interesting stories. DS approached them when he was thinking about purchasing a flat managed by the agent and they were very helpful.
The estate agent should be able to tell you how long there is left on the lease- avoid anything under 80 years as the cost to extend could be prohibitive.
Ask the estate agent for details of the ground rent and management charges and ask for previous years. You might get away with being able to ring the Managing Agent and ask them- I did this last year for another flat DS looked at, and they were surprisingly helpful.
If the property is a converted property it well might be a share of freehold, in some ways its good as you can control costs etc, but some owners are reluctant to pay for repairs that are not essential ( eg. waiting for a leaking roof) or regular painting. If the owners have set up a management company, and run it properly themselves that normally OK , but you do need to make sure there is a decent buildings insurance policy in place and a cleaning contact for communal areas and the grounds as a minimum.
It might be worth looking at Land Registry to see how many documents there are there that you can download. Some leases seem to have everything ,others appear to have several documents . You'll also get a clue about how long people have owned the other properties. I would ask the EA whether other properties are rented or owner occupied.

Thank you, lots of great information here!