SHOCKING Home Truths About Owning A Flat
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- čas přidán 6. 06. 2024
- Today I'm sharing with you some shocking home truths about owning a flat that NO estate agents ever tell you. This video is for you if you're considering purchasing a leasehold property, or you're trying to sell one.
Please note I am NOT a legal professional, I just have a lot of leasehold experience from owning a flat and writing about it over on my blog in the last year.
**Marriage value kicks in at 80 years, not 90 years as I stated in the video.
If you have any questions, please leave them below. I'd also recommend joining this Facebook group: / 786983251448976
Why I would never buy a leasehold property: www.sleek-chic.co.uk/2022/05/...
INTERIORS BLOG → www.sleek-chic.co.uk
INSTAGRAM → / sleekchicinteriors
Yet if you add the monthly mortgage to the monthly service charge it would buy you a freehold house. Yet you're told you don't earn enough to buy a house. Estate agents, banks, developers,solicitors freeholders are all in this rotten scam together.
You've summed it up perfectly, a broken system that never benefits the leaseholder
'you are at the mercy of landlords', I feel we live in the Middle Ages! I was watching an interview with an MP, who has been campaigning for 20 years to abolish leasehold properties, he said the parliament don't do it because about 2/3 of the MPs have income from the land!!! Thanks again!
So true!! I honestly never knew these things during the early days of having leasehold, just gets worse and worse when you realise why it really exists, thanks for watching!
Thank you so much for your videos! Looking to buy as a single person too and was looking at flats so really appreciate your honest feedback!! 🙏🏾🙏🏾
You’re so welcome! It’s the least I can do now I’m out of the system to educate and warn anyone considering leasehold, best of luck with your search whatever you choose to do! 😊
Thank you in sharing your knowledge & experience of purchasing leasehold flats.
You're so welcome!
I am a low incomed old age pensioner who bought a flat in 2014 as its cheaper than bungalow. This in preparation of old age. Readings/research I've done about flats looked okay so went ahead with buying one but little did I know ground rent would affect saleability years down the line.
Want to sell now and was horrified to discover through estate agents hopping regarding the ground rent issue when selling. Apparently buyers find it hard to obtain a mortgage for a flat with over £250 ground rent. Mine is currently £150 doubling in 5 years time with a review after 25 years. There's one flat similar to mine in my neighbourhood that's been on the market for a year now.
Looks like deed of variation is the route i should go but not sure when to start. Is it a good idea to do it now before putting the flat on the market or after finding a buyer? Even cash buyers would not want it as well, who knows!
I am so worried at the moment as funds are limited.
Thanks for sharing your experience and info about leasehold. Very happy for you that you're now out of this unfair and complicated system.
Best wishes.
So sorry you're in this situation with leasehold now. Ground rent seems to be the main sticking point currently, I'd firstly wait until the leasehold reform in November of this year as there are talks of them eradicating ground rent, I would wait for that. If they don't do anything, I would start the lease extension process when you are selling, lease extension is a similar cost to a deed of variation but so much better as it adds 90 years to the lease and reduces ground rent to a peppercorn. From what I remember, if you start this process with the solicitor when you're selling they will take the cost of it from your sale, so if you do make any money on your flat it's not eating into your physical money. I hope this helps and that the system changes soon so it's easier, and not as expensive for you to sell on, good luck with selling, I have my fingers crossed for you!
I remember your last video you put up about your leasehold flat....ive literally been through the same shambolic scandelous experience myself..... Bought my flat 4 years ago, enjoyed my time there but the service charge DOUBLED in 4 years.... Went from £1000 a year to over 2000 a year.... This taken my love for the place away from me, just sheer money grabbing. My property management company was called firstport and my scrupeless freeholder was estates and management.... Just shameless money grabbers. There reviews are just littered with disgruntled home owners who they are bleeding dry on a routine basis...
Anyway if had enough of there ruthless ways and decided to sell up... Luckily I ended up with a cash buyer who loved the flat (as I'd done alot of work to it modernising the place) so she offered me full asking price. Couldn't believe my luck....anyway solicitors did there bit which is standard.... But then the property management company got involved, then the freeholder got involved and for all of them to be involved in the sale they all had extortionate fees. Property management pack cost me £600....then there was ground rent confirmation £300....then there was rx4 forms to remove restrictions off the title.... Then there was missing information out of the property management pack that I had to pay to get off them....
Then as we was about to complete the issue regarding ground rent came up.... Currently it stands at 75 a year and doubles every 25 years... The buyers solicitor said this was unacceptable and demanded a deed a variation from us.... Like yourself I simply can't afford it... This was the first I'd heard about these issues regarding ground rent so like yourself when I looked the doubling ground rent issue on flats up online I felt sick, trapped... Overly worried etc.... Anyway I got a rough idea from the Internet of what they cost and like you said you're looking at around 10 grand.... Just an unreasonable amount of money.... So I knocked 5 grand off my asking price on the understanding my buyers drop this deed of variation issue.... Luckily enough they took the deal! This was just one of many many manyyyy issues I had selling that flat. It taken me a total of 7 months to sell. I was getting contacted on a daily by angry estate agents asking me. What was going on and it's literally out of your hands! You are forever waiting on files from the property management companies or the freeholders etc..... It's just a nightmare.... Please anyone reading this... Do not buy a flat... It isn't worth it... Selling it is almost l impossible, they are noisy, they are tiny, they have. Ludicrous service charges, onerous ground rent clauses that make it ectreamly difficult to sell on... There just no benefit. Get a house, freehold.... Or of leasehold is your only option get an older leasehold house where there's 800 years or whatever on the lease and it's a peppercorn ground rent...if you buy a new house leasehold youl likely end up with some more service charge BS to deal with.....
Finally after all the hardships I got my house. Never looked back. Thankfully my flat sale had a happy ending. But alot of people's don't...
I cannot stress enough, never ever ever buy a leasehold flat. You will get screwed every which way.
Oh my gosh, your experience sounds horrific and so similar to mine. 100% - I could never understand why anyone would want to buy a freehold of a property until the penny dropped. So relieved you managed to get out of leasehold for good, the worst system ever.
Mark: Absolutement ‼️ *DON'T* buy leasehold. Scam, scam, scam ☹☹☹
The mgmt company gets a fixed fee per month to manage the property. All other running costs of the property just get forwarded by the mgmt company to the owners. The mgmt company doenst upcharge on those costs. Surely you get a yearly plan/budget that itemizes every cost there is for the entire property. You need to study and understand that plan first.
@@leonk8113 Not all management companies have the same rules and regs ‼️ They are a law unto themselves, with no legal requirements, and THAT is why it is rather pot luck who you get. It would be wonderful if the law stated they must follow rules, ah ... dream on ☹🙄
Firstport is the worst I have come across, they just want to grab your money for everything - there should be some regulations to protect leaseholders and report such companies. The flat owners in my block got rid of them jointly - thankfully everyone agreed.
That was very useful
Hello there again Nicola.
My opinion for What It's Worth. Is that your battery off by the one bedroom bungalows freehold then this leasehold nightmare. Fair enough you have to pay for the building maintenance and any repairs or disasters that can arise. But you actually own the property if you go for freehold and you do not have to ask permission to do any alterations or any decorations internally. Also the property actually becomes yours if you buy freehold. Is what I am saying correct Nicola?
No service charge. No lease agreement rubbish. When you buy freehold that's that. You actually own the property lock stock and barrel. You are much better buying a bungalow rather than a flat. Also if you spot a bungalow with a nice garden then you have a garden to relax in during the summer. A much better option as far as I'm concerned don't you agree Nicola?
Thank you for this video and all the good advice that you are giving people.
Pure.
I agree with you, I always wondered why people would buy a 1 bed house or bungalow but actually you own it and it has far less issues connected with it when it comes to reselling, and monthly outgoings. Yes - if you buy the freehold of a flat (this can often be thousands of pounds) or you buy a freehold house, then you own it completely and you can do what you like with the property.
YES, having no outdoor space with a flat is a huge downside too which I didn't mention, you literally can't escape those 4 walls, as I found out during lockdown! Thanks for the comment :)
Leasehold is the biggest scam ever!
The worst system!
I thought in building regulations that flat new builds were supposed to use sound proofing. 😳
I do think this is a requirement today, my flat was a new build in an old property in 2016/17, it had insulation but deffo not sound proofing, although it must have passed building regs at the time. I think carpet is generally advised in living rooms which ours didn't have.
I am retired and currently own my home and had considered moving to a flat in the future. Given the expense and hazzle of leasehold, I shall remain in my home. It looks like leaseholders are held hostage financially. Yes owning a house comes with its hassles of maintenance and selecting tradesmen. Can even be ripped off, but you are in charge and can see where the money is going and I am learning.
Thanks so much for your comment. Yes, you absolutely are, you are at the mercy of them and what they want to charge. In your own home, you certainly have your control and spend money on who and want you like, house every time!
i dont have a mortgage. i have lived in flats most of my life. and you do own it i bought for cash and
sold it have never had any problems. i pay £60 a month. guess i am lucky
There are exceptions to the rule, it totally depends who the freeholder is, if your flat is owned by a large freeholder in England this is where the trouble begins. Because the property is on a lease this is why you never technically own it, if you let the lease run down the freeholder would take possession of the property from you, I'm really glad it's been a different story for you though, there are okay leaseholds out there if thorough research is done
What if you own a share of freehold for the flat does it make things any easier when selling?? Thank you :)
YES, if you have a share of freehold it will definitely be easier as you won't have to deal with the intermediary (freeholder) during the sale and their demands. There will still be queries re lease, service charges though, so just be prepared :)
@@NicoleSage thanks am trying to sell at the minute I don't understand why selling property generally should take so long it's ridiculous in other countries like the US it's much quicker
Sorry you're going through this now, I agree - leasehold sales are particularly time consuming, I think it's the addition of the lease that generally slows things down so much, hope it can get wrapped up without issues for you. Yes, US I'm sure they have to close within a set period of days, wouldn't that be nice!@@apuk79
@@NicoleSage have lived most by recent life outside the UK i don't understand why the property system is so slow and archaic there!! Honestly you are better off renting in the Uk you really are - less hassle
Lease hold the biggest scam in uk
Totally agree
Not all flats are bad. But it is built on model of slavery
Long story short, DO NOT BUY LEASEHOLD, LET'S THEM HOLD THEIR HOUSES WHILE WE GO ON RENT UNTIL WE SAVE UP MONEY FOR A FREEHOLD.