My partner and I are living in his 1 bed flat but looking for more space and privacy/quiet. We both work in the same area of town and are hoping not to have to move too far out as are trying to keep transport costs to a minimum. We’ve been looking for a suitable place for ages, and were both losing hope, but have recently spotted a 1 bed flat around the same size as ours, new build (even though it was actually built in 2015, it was build as an office, and has just recently acquired residential status…)
Our current place is struggling to sell, so we are thinking of reducing the price, and this new place is tempting as it’s on for £50k less than ours. It’s further out of town, but still walking distance, and - crucially - is a terraced bungalow, with no neighbours above or below.
We really loved it as all new and can hardly believe our luck as it would allow us to stay near friends & work, and on the face of it just mean brand new place with a bit of extra space, privacy, and less noise - BUT…
…my partners current flat is freehold, and so comes with annual service costs which are usually around £250.
The new property is leasehold, and mentions service fees of £1500 for management & services.
We accept this is a feature of new builds, abs of leases - but - it’s part of a development of around 15 other properties, all of which currently have tenants (I understand tenants don’t have to pay management/service charges…)
The cheaper price is tempting, but - as it stands, the property we are interested in is the only one up for sale, though apparently the owner is intending to slowly do up the remaining properties and put them up for sale in the future.
My FIL is adamant that we should run - and has cited lots of examples of people being trapped in new build flats with leases that involve management fees suddenly rising in future years, especially if owners of the development transfer the management costs to a company - he is fearful we are putting ourselves at risk of out of control and unknown charges going forward.
The agent has explained that the law these days is better for leaseholders, that ground rent can’t be charged/increased, and that we are protected by a right to see all management expense and contest any unreasonable charges.
Are we being ridiculous even looking in to such a property? It’s so perfect in terms of privacy/the building and location, but neither of us have any experience in leases, so any advice or experience gratefully received, especially in terms of what to look for when looking at the lease details.
it also concerns us a but that technically we’d be the first and only leaseholders given that the other properties are currently tenanted - does this mean we might end up paying for the other properties if they aren’t put up for sale?
Summary: considering a leasehold flat which is a bit unusual as newly done up but only one for sale, worried about ambiguous management costs - are we mad for considering - how bad could it be in 2023?