Houses

[rachhere]

8 hours ago, Alf Bentley said:

Please tell me I've made the right decision....or tell me I've made the wrong one, if you think I have. It's a fait accompli either way....

 

I'd agreed to buy a flat in Devon, leasehold plus freehold shared with 3 other flats. Survey revealed a number of issues, mostly as expected and not prohibitive, but also repairs needed to roof, which surveyor put at "up to £5k per flat".

Solicitor's enquiries then revealed that the management company responsible for building maintenance (jointly owned by the 4 flats) was dormant, due to be replaced by a new company, had no accounts for 3 years and no reserve funds....

 

Initially, I was just looking at the finances and requested a £2k price reduction from the seller (assuming the surveyor was describing a worst case scenario at £5k).

But then I started thinking more of the potential nightmare if the 4 flat owners couldn't agree to pay "up to £5k" each for roof repairs....strife and potential for the roof to deteriorate further with consequences for the building and its long-term value.

Seems like a pretty clear risk, doesn't it, if they can't even form a management company and pay the regular service charges? 

 

Anyway, I've withdrawn my offer, despite the seller offering a last-minute £3k reduction (after initially rejecting £2k). So I'm back to square one, 3 months' plans up in smoke and £2k+ solicitor's & surveyor's fees down the drain....

 

The current downward trend in the market could be my saviour as there are at least 8-9 viable alternative flats on the market in the same area for similar prices, mostly in better condition.  Losses & disappointment notwithstanding, I think I've dodged a bullet. I feel a bit shitty having let the seller down, especially as she has young kids, but know she was pricing the flat higher than she'd paid for it just a year ago. I've little idea who was at fault for the chaos with the management co.

 

At 61, it's the first time I've been involved in such leasehold/share of freehold/management company/service charges stuff. My only previous purchases were a semi-detached & a terraced house, both freehold, with the ex.

You have to go with your gut instinct on things like this I think - so on that basis you have done the right thing 

[FoyleFox]

8 hours ago, Alf Bentley said:

Please tell me I've made the right decision....or tell me I've made the wrong one, if you think I have. It's a fait accompli either way....

 

I'd agreed to buy a flat in Devon, leasehold plus freehold shared with 3 other flats. Survey revealed a number of issues, mostly as expected and not prohibitive, but also repairs needed to roof, which surveyor put at "up to £5k per flat".

Solicitor's enquiries then revealed that the management company responsible for building maintenance (jointly owned by the 4 flats) was dormant, due to be replaced by a new company, had no accounts for 3 years and no reserve funds....

 

Initially, I was just looking at the finances and requested a £2k price reduction from the seller (assuming the surveyor was describing a worst case scenario at £5k).

But then I started thinking more of the potential nightmare if the 4 flat owners couldn't agree to pay "up to £5k" each for roof repairs....strife and potential for the roof to deteriorate further with consequences for the building and its long-term value.

Seems like a pretty clear risk, doesn't it, if they can't even form a management company and pay the regular service charges? 

 

Anyway, I've withdrawn my offer, despite the seller offering a last-minute £3k reduction (after initially rejecting £2k). So I'm back to square one, 3 months' plans up in smoke and £2k+ solicitor's & surveyor's fees down the drain....

 

The current downward trend in the market could be my saviour as there are at least 8-9 viable alternative flats on the market in the same area for similar prices, mostly in better condition.  Losses & disappointment notwithstanding, I think I've dodged a bullet. I feel a bit shitty having let the seller down, especially as she has young kids, but know she was pricing the flat higher than she'd paid for it just a year ago. I've little idea who was at fault for the chaos with the management co.

 

At 61, it's the first time I've been involved in such leasehold/share of freehold/management company/service charges stuff. My only previous purchases were a semi-detached & a terraced house, both freehold, with the ex.

I think you're doing the right thing. Always a red flag if the management company isn't running efficiently. It's painful in the short term with the planning and money wasted but, the longer term pain could be worse and more expensive.

[Lako42]

20 hours ago, Alf Bentley said:

Please tell me I've made the right decision....or tell me I've made the wrong one, if you think I have. It's a fait accompli either way....

 

I'd agreed to buy a flat in Devon, leasehold plus freehold shared with 3 other flats. Survey revealed a number of issues, mostly as expected and not prohibitive, but also repairs needed to roof, which surveyor put at "up to £5k per flat".

Solicitor's enquiries then revealed that the management company responsible for building maintenance (jointly owned by the 4 flats) was dormant, due to be replaced by a new company, had no accounts for 3 years and no reserve funds....

 

Initially, I was just looking at the finances and requested a £2k price reduction from the seller (assuming the surveyor was describing a worst case scenario at £5k).

But then I started thinking more of the potential nightmare if the 4 flat owners couldn't agree to pay "up to £5k" each for roof repairs....strife and potential for the roof to deteriorate further with consequences for the building and its long-term value.

Seems like a pretty clear risk, doesn't it, if they can't even form a management company and pay the regular service charges? 

 

Anyway, I've withdrawn my offer, despite the seller offering a last-minute £3k reduction (after initially rejecting £2k). So I'm back to square one, 3 months' plans up in smoke and £2k+ solicitor's & surveyor's fees down the drain....

 

The current downward trend in the market could be my saviour as there are at least 8-9 viable alternative flats on the market in the same area for similar prices, mostly in better condition.  Losses & disappointment notwithstanding, I think I've dodged a bullet. I feel a bit shitty having let the seller down, especially as she has young kids, but know she was pricing the flat higher than she'd paid for it just a year ago. I've little idea who was at fault for the chaos with the management co.

 

At 61, it's the first time I've been involved in such leasehold/share of freehold/management company/service charges stuff. My only previous purchases were a semi-detached & a terraced house, both freehold, with the ex.

You have made the correct choice. Reading it I was getting concerned you'd gone through with the purchase because it sounds like a potential headache to me. 

 

You want somewhere to live and be happy not somewhere to create stress and doubt.

Edited 16 August 2023 by Lako42

[Ian Nacho]

On 15/08/2023 at 14:36, Alf Bentley said:

Please tell me I've made the right decision....or tell me I've made the wrong one, if you think I have. It's a fait accompli either way....

 

I'd agreed to buy a flat in Devon, leasehold plus freehold shared with 3 other flats. Survey revealed a number of issues, mostly as expected and not prohibitive, but also repairs needed to roof, which surveyor put at "up to £5k per flat".

Solicitor's enquiries then revealed that the management company responsible for building maintenance (jointly owned by the 4 flats) was dormant, due to be replaced by a new company, had no accounts for 3 years and no reserve funds....

 

Initially, I was just looking at the finances and requested a £2k price reduction from the seller (assuming the surveyor was describing a worst case scenario at £5k).

But then I started thinking more of the potential nightmare if the 4 flat owners couldn't agree to pay "up to £5k" each for roof repairs....strife and potential for the roof to deteriorate further with consequences for the building and its long-term value.

Seems like a pretty clear risk, doesn't it, if they can't even form a management company and pay the regular service charges? 

 

Anyway, I've withdrawn my offer, despite the seller offering a last-minute £3k reduction (after initially rejecting £2k). So I'm back to square one, 3 months' plans up in smoke and £2k+ solicitor's & surveyor's fees down the drain....

 

The current downward trend in the market could be my saviour as there are at least 8-9 viable alternative flats on the market in the same area for similar prices, mostly in better condition.  Losses & disappointment notwithstanding, I think I've dodged a bullet. I feel a bit shitty having let the seller down, especially as she has young kids, but know she was pricing the flat higher than she'd paid for it just a year ago. I've little idea who was at fault for the chaos with the management co.

 

At 61, it's the first time I've been involved in such leasehold/share of freehold/management company/service charges stuff. My only previous purchases were a semi-detached & a terraced house, both freehold, with the ex.

I was in a similar situation around 18 months where something seemed fishy with a flat I was buying and ultimately I decided to pull out and also pissed around £2k up the wall in solicitor fees. Best thing that happened though as I was able to buy a house instead which is far better. From my own personal experience you’re always going to get strange things that come up with owning a flat that make you feel a bit uneasy and wonder if you’re making the right decision. For that reason I’d never touch flat ownership again because of the level of responsibility and potential cost if things do go wrong. If it has to be a flat I’d just rent if I was you, okay it would cost more in the long run but you’re a lot more flexible and have less responsibility. Working in the housing sector as well tenants are going to be given way more rights too so less likely you’ll be done over by a landlord. 

[Nalis]

Some management companies are profiteering robbing bastards who cant be trusted. I'm not going to CLARI-fy who I'm ON about....

Edited 17 August 2023 by Nalis

[FoyleFox]

No questions, I'm just venting.

Our buyer's sols had the contract for signing 5 weeks ago, we'd hoped for completion end of Aug/early Sept.

It transpired yesterday, said solicitors were bought out early August and the acquiring firm aren't on the mortgage panel for our buyer's mortgage company. An application has been made, but now we're at a standstill until approved.

 

And no-one appeared to know anything about this until I started chasing things yesterday. As, we go away in 5 weeks, which means if they don't sort it out in that time, completion won't be until December

 

[FoyleFox]

House sale completed today. At chuffing last!  Email from the solicitors at 8.50am that it was all done 

Edited 13 October 2023 by FoyleFox

[Bellend Sebastian]

8 hours ago, FoyleFox said:

House sale completed today. At chuffing last!  Email from the solicitors at 8.50am that it was all done 

It's such a relief isn't it? It's stressful enough when it all goes according to plan

[FoyleFox]

18 minutes ago, Bellend Sebastian said:

It's such a relief isn't it? It's stressful enough when it all goes according to plan

Indeed. All done now thankfully. 

[UniFox21]

Rental prices are staggering currently. The LL at my current place is upping by £150pcm, I had already decided to leave, but the price for house/flats currently is so poor. 

[FoyleFox]

If you want to get a valuation on a piece of land, but not a building plot, do you still just ring an estate agent? Family member wants to get an allotment valued.

[UniFox21]

Rental market is awful again.

Having to put offers in and be "chosen" to rent a house is stupid 

[dsr-burnley]

2 hours ago, UniFox21 said:

Rental market is awful again.

Having to put offers in and be "chosen" to rent a house is stupid 

It is.  That's the problem with driving landlords out of the market, as the government is aiming to do.  If you make the cheaper houses un-rentable by extra restrictions on insulation etc., and you squeeze the profits of landlords in various ways, then it's inevitable that the number of properties will reduce and the price will go up.

 

And the idea of driving landlords off the market so there is more property available for people to buy, is no use at all to people who can't get a mortgage.  Pensioners, single parents, unemployed, there's nothing for them.

[ozleicester]

Interesting moves by the WA Govt...

 

Free $5000 for struggling renters
https://www.abc.net.au/news/2023-11-08/wa-rent-relief-program-announced-for-struggling-renters/103078324

Free $10,000 for airbnb owners...
https://thewest.com.au/news/wa/wa-government-to-offer-airbnb-owners-10000-incentive-to-make-properties-available-for-long-term-rent-c-12485210

[grobyfox1990]

4 hours ago, dsr-burnley said:

It is.  That's the problem with driving landlords out of the market, as the government is aiming to do.  If you make the cheaper houses un-rentable by extra restrictions on insulation etc., and you squeeze the profits of landlords in various ways, then it's inevitable that the number of properties will reduce and the price will go up.

 

And the idea of driving landlords off the market so there is more property available for people to buy, is no use at all to people who can't get a mortgage.  Pensioners, single parents, unemployed, there's nothing for them.

EPCs? That should be a minor concern especially as sunak has delayed the inevitable. Rates going up by 100s of percent, insurance tripling, service charges tripling. Suddenly a property with a decent yield of 10+% no longer washes its face. Leveraged landlords are losing money, tenants are being screwed over. 

[The Year Of The Fox]

Makes me laugh- people’s disdain for landlords

 

I’m looking at selling my rental property, to help fund a deposit for a house with my fiancée and maybe as well as some wedding bells. 
 

I can afford to keep the rental, as well as rent the one out where I’m currently living but then would be faced with a £6.9k stamp duty on the third house. Alternatively I can sell my rental, but have quite a hefty Capital Gains tax bill to pay. That’s after being taxed monthly on the rental income over the last 6.5 years, as well as paying stamp duty at that time too. 
 

Just trying to work out which will cost the least amount of £xxxx’s 

Oh, and because I sensed what was going to happen, I remortgaged early in March last year, locking in for 5 years so I didn’t need to increase my tenants rent (something I still haven’t done) I’m going to get penalised for finishing the mortgage early too

 

Not every person with a rental property is a bankrolled self made millionaire. Not by a long stretch 
 

 

[grobyfox1990]

8 minutes ago, The Year Of The Fox said:

Makes me laugh- people’s disdain for landlords

 

I’m looking at selling my rental property, to help fund a deposit for a house with my fiancée and maybe as well as some wedding bells. 
 

I can afford to keep the rental, as well as rent the one out where I’m currently living but then would be faced with a £6.9k stamp duty on the third house. Alternatively I can sell my rental, but have quite a hefty Capital Gains tax bill to pay. That’s after being taxed monthly on the rental income over the last 6.5 years, as well as paying stamp duty at that time too. 
 

Just trying to work out which will cost the least amount of £xxxx’s 

Oh, and because I sensed what was going to happen, I remortgaged early in March last year, locking in for 5 years so I didn’t need to increase my tenants rent (something I still haven’t done) I’m going to get penalised for finishing the mortgage early too

 

Not every person with a rental property is a bankrolled self made millionaire. Not by a long stretch 
 

 

Yeh as per above. Most ‘mom and pop’ landlords can’t wash their face with their BTLs now. Those over leveraged are giving up their properties not because of EPCs but because of the huge increase in rates. 
Would be interested in the maths of ending a current early, locking into a 5/10 year and getting hit by an ERC v letting the lower rate ride out the term and overpaying as much as possible whilst on it. It won’t be that clear cut for some and it seems a lot of people panicked and got a new product as soon as Russia marched into Ukraine. Lower rates were never going to last so it was all about overpaying every penny you had whilst on a 1.19% product or similar 

[Nalis]

If people want a second home to either supplement their income or use as a pension thats fair to me considering the wealth management tactics by the ultra high net worths. Like any investment strategy there are risks to consider along with the potential reward.

 

When it gets laughable is a recent trend I've seen of some landlords claiming they do it to provide much needed housing to people who cant afford to buy, as if they are doing it benefit society. Its either total delusion or an insult on people's intelligence.

[ozleicester]

Meh ... being a landlord is just ticket scalping on an industrial scale

[grobyfox1990]

38 minutes ago, Nalis said:

If people want a second home to either supplement their income or use as a pension thats fair to me considering the wealth management tactics by the ultra high net worths. Like any investment strategy there are risks to consider along with the potential reward.

 

When it gets laughable is a recent trend I've seen of some landlords claiming they do it to provide much needed housing to people who cant afford to buy, as if they are doing it benefit society. Its either total delusion or an insult on people's intelligence.

Yeh agreed. That’s a deranged argument imo. 

[grobyfox1990]

18 minutes ago, ozleicester said:

Meh ... being a landlord is just ticket scalping on an industrial scale

But what else to do if you live in the first world? We commoditise everything, including our people. We know the price of everything and the value of nothing. The state isn’t going to look after you in old age so being prudent and building up diverse private pension holdings is smart, not scalping, imo. Do you have a private pension, workplace or otherwise? 

[The Year Of The Fox]

2 hours ago, grobyfox1990 said:

Yeh as per above. Most ‘mom and pop’ landlords can’t wash their face with their BTLs now. Those over leveraged are giving up their properties not because of EPCs but because of the huge increase in rates. 
Would be interested in the maths of ending a current early, locking into a 5/10 year and getting hit by an ERC v letting the lower rate ride out the term and overpaying as much as possible whilst on it. It won’t be that clear cut for some and it seems a lot of people panicked and got a new product as soon as Russia marched into Ukraine. Lower rates were never going to last so it was all about overpaying every penny you had whilst on a 1.19% product or similar 

Agreed. These interest rates aren’t even high in fairness are they. It’s just people like myself failed to appreciate how good/easy we’ve had it the past 12 years 

Edited 9 November 2023 by The Year Of The Fox

[lcfc278]

I'm sorry but you're not going to get any sympathy from anyone apart from other landlords and owners of multiple properties. "Woe is me, I'm not making as much money as I used to from my rental properties!"

 

Hopefully you made your money while the sun was shining but rightfully so the rental market is a joke and it should be harder and more difficult to take advantage of it for landlords.

[grobyfox1990]

5 minutes ago, lcfc278 said:

I'm sorry but you're not going to get any sympathy from anyone apart from other landlords and owners of multiple properties. "Woe is me, I'm not making as much money as I used to from my rental properties!"

 

Hopefully you made your money while the sun was shining but rightfully so the rental market is a joke and it should be harder and more difficult to take advantage of it for landlords.

Any landlords asking for sympathy are total idiots. Who’s doing that?

Likewise any landlords making ANY money now and surely one of the minority. After rates, licensing, tax, insurance, maintenance, service charges and fees, who’s making anything? 
Point is, don’t hate 57 year old Bill from down the road who took advantage of being born in a gold-plated giveaway generation to build up his assets. Maybe ask why successive governments and middle England weirdos have failed to build enough houses for us all 

[The Year Of The Fox]

1 hour ago, lcfc278 said:

I'm sorry but you're not going to get any sympathy from anyone apart from other landlords and owners of multiple properties. "Woe is me, I'm not making as much money as I used to from my rental properties!"

 

Hopefully you made your money while the sun was shining but rightfully so the rental market is a joke and it should be harder and more difficult to take advantage of it for landlords.

My point is you don’t really make any money. Not off one property. 
 

I mean; you might charge £800 rent a month, whilst the mortgage on it is £600. But you get taxed on the whole £800 not the £200 profit you get a month. I’d say after those deductions you’re probably about even.