So you have decided to buy a flat or a leasehold property. Below are some questions we suggest you ask the seller or the estate agents so that you know what you are getting into.
How long is the lease?
How much is the ground rent? When is this paid?
Is the ground rent to be reviewed periodically? If so, when is the next rent review date? If the future rent known?
Are there any common areas? If so, how are the common areas maintained?
Who insures the whole building?
How much is the service charge? Ask for a copy of the latest service charge accounts.
What are the parking arrangements?
Are pets allowed?
Is there an age restriction for residents?
Am I allowed to rent out the property? If so, are there any fees payable to the management company or the freeholder?
Do I need permission to do works on the property?
Is there a residents’ association?
Do I become a director/shareholder of the residents’ management company?
Are there any major works planned in the future with regard to the common areas or the building which you may be responsible for? If so, what works are planned?
Is there a reserve or sinking fund to offset future major works?
Are service charge monies kept in a separate trust bank account?
Is the managing agent a member of a recognised trade or professional body?
Has a fire risk assessment of the common parts been carried out?
Has an asbestos survey been carried?
How many leaseholders are in arrears for their service charge payments?
Can I run my business from my flat?
How much are the council tax and utility bills?
More about this:
If you’d like to know more about buying a home, call Delfin Posada on 020 37443800.
*Delfin Posada is a Partner at Posada & Co Solicitors and Beach Law and has been advising individuals and families for over 15 years. Delfin is passionate about helping individuals and families achieve their aspirations and objectives through sound estate and succession planning, family and business governance and inter-generational wealth transfer.*