Ex-council Leasehold

[Shadow12345]

Hi Mums netters- Looking for advice with someone who has experience before.

Some weeks away from exchanging on this ex-council -

https://www.zoopla.co.uk/for-sale/details/67900021/

Even though quoted service charge is optically low, the major works that happen every 7 to 10 years are quite expensive, and the actual cash outflow per year can be quite high (almost 6.5k during last year), as the council allows major works to be spread through interest free 5 years or so. 😥

Last major works was £25k during 2020. I found these during conveyancing.

What do I do now please? Thanks in advance!

No experience as a resident but I work in planned maintenance in council housing. I would find out what works have been done in recent years and what’s planned over the next 10/20 years. The council should have an idea of this, we plan cyclical maintenance around asset management principles, by calculating the typical life span of components; roofs, communal doors, painting and then programming ahead to set budgets organise works etc. We work with our leaseholders really closely, my council has a leasehold team too whose remit is to support leaseholders with stuff like this.

Check with the council what has been done and what is due in the next few years. It maybe that that was a new roof which is expensive but likely once in a lifetime expense

The leasehold is also fairly short, obviously you won't need it for 172 years but might make it trickier to sell on. I can add a charge to the flat for repairs too if I can't afford it s when I eventually sell the council get whatever I owe back first.

Are you attached to the area? You could get a massive house with sea views here for that.

You could try speaking to the council and get some idea of what works might be planned. Ultimately though you have to accept that as a leaseholder in a council owned building you are going to get some big bills at some point.

However what are your alternatives? Presumably you can’t afford a freehold in the area, and don’t want to move away? Where I live £600k would get you a lovely 5 bedroom detached freehold house.

172 years isn't a short lease. We've recently sold our leasehold flat and got it extended by 99 years to get it to roughly that point. If it was down to roughly 100 years I'd consider extending in the near future.

Yes, need to close to central London/Canary Wharf as I have to be in office all 5 days.