Do I need to try and get rid of my flat now

[tropicalroses]

Based on the news the government is looking at banning new leasehold agreements, should I try and sell my flat now?

I was looking at selling in the next 2 or 3 years and moving to a house, should I try and pull my purchase forwards even though it will be a squeeze financially, on the basis that the desirability of leasehold flats will go through the floor when this happens? https://www.bbc.co.uk/news/articles/cvgezyz31jlo

It depends on the politic around rentals.

Rent controls and applying current building regs to old buildings are one way to force provide low income housing to replace social housing.

And for an aging population high rental costs at or over inflation need to be matched by pension. Most housing loans are based around ending when funding is pension dependent so the annual fee is the only housing cost.

Happily! Our estate has had its front doors done three times. We are in SH so we dont have to pay but those in leasehold will. People have been charged up to £4,000 per door set.

They have to be changed every time the fire regs change.

It is better, but it does rather depend on people being willing to volunteer to do that and it is a lot of work.

In my development part of it is offset by the sink fund. Honestly though 4k is what I paid for a new boiler. My DH's adhd diagnosis cost more than 2k, 300 quid per consultation, meds over 200 quid per month until he goes into shared care wifh a GP. Life is expensive and tbh service charges in germany/france where they don't have any leasehold isn't any lower.

This applies regardless of leasehold or freehold.

shared freehold is a nightmare and I agree with pp saying it's amazing how people think charges vanish if you share freehold.

happily, in my new place I am seeing signs of realism. I pointed out to someone that the mgmt comapnies would all pack up if they didn't make a profit and she said "good point". In another experience, I've had to tell one mgmt co that certain jobs didn't need doing - but they have to serve notice anyway so if they're trying to raise money for their mates to do an unneeded job, they get stopped that way.

I'm not entirely sure what's happened in some of the places where people have been fleeced but often people don't seem to know they have the right to look at invoices etc

I also pay monthly so if they go bust, less of my money goes with them.

it tends to be older buildings that have huge sink funds I think? and my share of freehold had one too. After that, I was in a flat that was 6 years old when bought and now a new build.

edit - @tropicalroses there will always be people who want to live in flats rather than houses for a range of reasons. I wouldn't worry until you see some draft legislation and it will take ages.

My daughter lives in a flat ( Victorian house divided into 4 flats). It was leasehold share of freehold when she bought it then the 4 flats between them bought the freehold.

As others have pointed out, she still has regular maintenance bills because that’s life. Buildings need maintenance. They even employ a management company to organise things for them but at least they got to choose their own management company & chose one with competitive fees.

Some buyers will always want to buy flats & in more expensive areas can’t afford houses so I can’t see the demand for flats disappearing.

Most Leasehold developments have a Management Company in the lease that the Leaseholders control anyway (upon completion of the development).

The issue isn’t the tenure of the development, it’s the rising costs of staff, utilities, building insurance, fire safety, building remediation. The government really should be focusing on bringing these costs under control and implementing regulations of managing agents!

Perhaps put it on the market and have a go - but accept you might have to hang on to it into the future and hope for a change of law.