pslewis

OK, let's see how clever Scoobynet is

Looking at a Studio Flat to buy - it will yield around 7%.

The Estate Agent says that the landlord (Wimpey homes from 1988) have ceased collecting any maintenance charges and ground rent. Probably not worth it to them, as the grounds are maintained by the properties themselves - in fact, this flat has a huge garden attached.

Looking ahead to when I may want to sell it - as soon as the market lifts in 5 years - I need to make sure that a first time buyer can buy it with a mortgage (and not for it to be just an investors property).

I have a feeling that Mortgage Companies may not like the fact there is an absent Freeholder? There are 4 Studio Flats in the block. It's the insurance I'm concerned about - who pays, for example, if the roof blows off?

This is a ground floor flat.

Any help/advice out there? Thanks

Leslie

Is it going to be a bit of a hideaway so that you can write more posts to us without any kind of disturbance?

Les

zip106

At least you won't need to install a Stannah.

pslewis

Har Har Zip!

Les - It's just a walk around the corner, tennants pay £550 a month and it's a bargain price .............. but, I'm rather risk averse so looking to future saleability.

mike74

It's strange that the freeholder has decided it's not worth it, in my experience leasehold service charges and ground rent is the biggest money for nothing scam in the whole property market... and in a sector full of spivs, sharks and cowboys that takes some doing!!

eelz

iTrader: (10)

My Mrs says to have look on the leasehold advisory service.

Also, check if there is a sinking fund from the past (ground rent/maint fees) as wimpy shouldn't of been able to 'take-off' with the funds when they stopped collecting.


( Mrs is a property solicitor btw)

pslewis

Thanks ..... further info.

I have received some contact from Wimpey (now TaylorWimpey) - they say that, as the property has no cummunal areas they are not interested.

That seems to make some sense - but, what about Insurance? How do you make sure each owner of the flats has adequate cover? Me, for example, I could buy the place cash - and not insure it at all if I so chose.

eelz

iTrader: (10)

Mrs also said you could get all the other residents in the apartments to rally together and form some sort of management company, appoint a director and insure the building this way then by putting money into an account as a 'sink-fund' or something like that ..lol

I'll have to ask her again or try to get her to reply instead of me.

wonder what the current tenants are doing at the moment.. If they have paid into taylor-wimpey in the past, surely their monies are still accessible ?

pslewis

Yes, a sink fund could be set up for repairs .... or, I suppose, each flat insures for the whole building?

There are only 4 flats. I may knock on the door of one and ask what they do,

Leslie

Sounds like a good idea Pete. Surely if another flat dweller had a problem which affected your flat either his insurance should cover it or your own for that matter. I certainly would not keep it uninsured as you mentioned.

Les

David Lock

So why don't you phone up Wimpy and ask?

dl

pslewis

dl - see post #7

hodgy0_2

in reality, in cases like these the market decides

in a "bubbly" market people take a view and let things go (even against the advice of a solicitor), if you don't buy it someone else will

in a flat market - less so, and properties that have no "niggles" will always do better and sell quicker

but actually all properties tend to have some form of "niggles" to a greater or lesser extent

it really is that simple

salsa-king

questions......

who manages the four flats?
buildings insurance would be lost in with the service charge.


tbh.. four flats!! if you need a new roof its should be split between the four properties!

divide everything by 4 and then you have a think if you want to be paying that sort of split.

I have five studio's in a block of 80 flats... so everything is split 80 ways! (it has a freeholder, ground rent is £50 a year)
and a one bed flat in a group of 27 flats.. so split 27 ways. (no freeholders as the 27 owners own the freehold between them.. so no ground rent to pay)

just something to think about.

pslewis

I have contacted Taylor Wimpey again ..... they say that it is all laid out in the Lease (so, I should be able to get answers from the vendor - even before I offer anything?).

They also say that they believe it will be a horizontal split - upstairs responsible for the roof and downstairs for the foundations ..... but, each flat has a legal right to claim from the other flat owners.

No idea who manages it - surely you can buy Insurance to cover your liability if the roof blows off or subsidence happens?

salsa-king

Not sure I like the sound of that. So the roof leaks and the person doesn't fix it. And the rain effects the below flat?


Don't rush into it. Pete.

Everything should be split 4 ways. Its in each others others interest to maintain it.

Leslie

Sounds reasonable to me Pete.

Les