Ten Things to Consider Before Buying a Flat
- Is the property leasehold or commonhold, and do you understand what this means for you financially?
- How much are the annual service charges, the ground rent, the insurance, and what do they include? It is important to know what you are signing up to.
- How long is left on the lease? When a lease is less than 80 years old, it becomes more expensive to extend, and mortgage companies may refuse to lend. If you do purchase a short lease, you will not be able to extend it until you have owned the property for a minimum of two years.
- How much would extending the lease cost, and to what length would this be?
- Have you read the lease to confirm what you can and cannot do? Does the building allow pets? Does it allow subletting? Do you have use of the outside areas? Taking the time to read the lease could save you unnecessary problems in the future.
- Is there a freeholder in the picture or a right to manage company? It is good to know who is in control of the running of the block.
- Find out who the managing agents are and do some research. A good managing agent and a well-run block will greatly improve your enjoyment of your home.
- Are any major works planned in the near future? Obviously, managing agents won’t be able to predict the future in case of emergencies or immediate damage, but they usually have an idea if the exterior needs re-decorating or if roof work is due. The last thing you want as a new owner is to be unaware and get a large build so soon into your new ownership.
- Is there a reserve or sinking fund in place, and if so, how much is in there? This can help with major work costs. If you sell, you don’t recoup the money you have put in, but it can be attractive to future purchasers to know there are healthy funds set up.
- Too many people only concentrate on the inside of the flats when they view them, but take the time to view the communal areas, gardens, and car parks to see how well maintained they are.
