Living with Leasehold

Morning everyone

Just when you thought that HIPs were dead in the water, they raise their  heads again, with a recent article explaining how they’re going to work for leasehold flats.

Currently the only difference between a leasehold and a freehold HIP purchase is the inclusion of the lease but that is set to change.

Now I wonder how many of you out there have any idea how many questions should be asked ahead of purchasing a property of this type?

I also wonder how many of you know which questions should take ideally take priority over others?

The leasehold system is  complicated and for many leaseholders enormously stressful after the fact because it remains a poorly understood sector of the property market.

We are bombarded with TV programmes that show us how easy it is to buy a property and make money out of it, and for business ventures that’s all very well and good.

However, if you can only afford a flat as a home then there is no information provided to you at the beginning of your purchase unless you know what questions to ask and I’m not talking about the normally required legal documentation.

Information that could really help with an informed choice is not usually provided voluntarily by estate agents for fear of losing a sale.

Most leaseholders thought that they owned their home, (including us) and by the time realisation dawned that they were only glorified tenants with their ground landlord deciding how the block should be maintained (or not) and paid for (not by him but by you in the way of service charges) and that the managing agent was about as much use as a chocolate fireguard then it was too late.

They were the proud ’owners’ of a flat in a poorly managed, problematic block.

There is plenty of help available but you didn’t buy a leasehold flat with a view to having to need so much of it.

More importantly, how many of you know that we were actually given a third way of purchasing a property in the form of Commonhold?

This is a way of purchasing a flat but without having a third party, i.e. a freeholder, making  decisions on a property you will actually own, unlike leasehold which is controlled not by you, but by your landlord.

Not many of you I bet.

I now have an excellent managing agent that has taken me through the RTM process and whilst I have to pass a grateful nod toward the particular part of the legislation that made this route available, the securing of the agent only came about through a series of unplanned events.

In light of the fact that leasehold continues to grow, the role of the managing agent is key.

Feel free to comment or to ask questions if you would like.

I would be more than happy to hear from you.

In the meantime, Buyer Beware!

Have a great weekend.