Sign in to follow this  
Followers 0
aalyas

Reasonable Service Charge ?

6 posts in this topic

I am thinking of buying a garden flat in a popular part of south west london london - the service charge is £1270 per annum ? I've seen another nearby flat with a service charge of £300, but am aware these can vary significantly?

The flat is in a victorian period conversion - so honestly not sure what service needs to be done, but wondering what people think of this cost ?

Share this post


Link to post
Share on other sites

I am thinking of buying a garden flat in a popular part of south west london london - the service charge is £1270 per annum ? I've seen another nearby flat with a service charge of £300, but am aware these can vary significantly?

The flat is in a victorian period conversion - so honestly not sure what service needs to be done, but wondering what people think of this cost ?

Ask them to break down what the service charge does cover. Also check to see if there is a reserve fund and if so at what level is at at compaired to where it is expected to be. It could be that a large amount of work has been carried out in the recent past, so reducing the reserve fund and so the charge has been raised to build up the fund again.

Share this post


Link to post
Share on other sites

Ask them to break down what the service charge does cover. Also check to see if there is a reserve fund and if so at what level is at at compaired to where it is expected to be. It could be that a large amount of work has been carried out in the recent past, so reducing the reserve fund and so the charge has been raised to build up the fund again.

The reason for asking about the reserve fund is that I know someone being sold a flat with had been priced to take into acount a large amount of 'improvements' that had taken place over the last few years. It turned out that many of the improvements had been funded from the reserve fund and so as the purchaser they were going to end up paying for them via the higher service charge over the next few years and the seller was trying it on.

Share this post


Link to post
Share on other sites

Thanks for your responses. From looking at the price of several similar flats the charge seems to be much higher - and I guess it will only go up year on year. It all seems abit dodgy to me.

Share this post


Link to post
Share on other sites

Read the management accounts.

Is there cash in the bank?

Was the overall income coming in from the flats higher than the expenditure?

The balance sheet of the management account is critical for buying a flat.

If there is a deficit. Avoid.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0

  • Recently Browsing   0 members

    No registered users viewing this page.