cartimandua51 Posted March 16, 2012 Share Posted March 16, 2012 (edited) I'm considering buying a ground floor / garden flat in Bath. Apparently the present freeholder who owns all the flats (it's a traditional four storey Bath terrace) is selling the flats off as they become vacant and I could probably buy the freehold. However, at present there's no management company in place and therefore no established service charges etc. Does anyone have any advice in this situation? (e.g. run like hell??!) Edited March 16, 2012 by cartimandua51 Quote Link to comment Share on other sites More sharing options...
manchester50 Posted March 16, 2012 Share Posted March 16, 2012 I wouldn't be put off by the lack of a management company - lots of small conversions do without. Eventually someone needs to take the initiative and organise people, set up a sinking fund for emergencies etc. When you say you could buy the freehold, I assume you mean a 1/4 share in the freehold (assuming 4 flats). You want all the flats to share the freehold, or an external party to own the whole freehold. Remember it's the freeholder(s) who need to sort out external issues (roof falls off etc) Quote Link to comment Share on other sites More sharing options...
24gray24 Posted March 16, 2012 Share Posted March 16, 2012 You are much better off buying a share of the freehold if you can. If the freeholder doesn't care, you can offer to draft the transfer to the flat owners. That way, each time he sells a flat, he can sell a one quarter share of the freehold at the same time. He may as well start with you. The alternative is he sells off the freehold to some shark later on, and they start charging you £5000 a year maintenance fees. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted March 17, 2012 Share Posted March 17, 2012 You are much better off buying a share of the freehold if you can. If the freeholder doesn't care, you can offer to draft the transfer to the flat owners. That way, each time he sells a flat, he can sell a one quarter share of the freehold at the same time. He may as well start with you. The alternative is he sells off the freehold to some shark later on, and they start charging you £5000 a year maintenance fees. Leaseholders have a collective right of first refusal on any sale of the freehold since the 1985 act. The sharks you really need to beware of are those already in place. Bath has some major bargepole territory dating from when Beazer wanted out before that legislation came into force, and sold a portfolio (including, I believe, both conversions of old buildings and their own builds) to the serious mafia. I'd not be entirely sanguine about a current freeholder known to be decent, either. A corporate entity could come under new and evil management, and a decent individual owner could pass assets on to evil heirs, without triggering a right of first refusal. Quote Link to comment Share on other sites More sharing options...
tim123 Posted March 17, 2012 Share Posted March 17, 2012 I'm considering buying a ground floor / garden flat in Bath. Apparently the present freeholder who owns all the flats (it's a traditional four storey Bath terrace) is selling the flats off as they become vacant and I could probably buy the freehold. However, at present there's no management company in place and therefore no established service charges etc. Does anyone have any advice in this situation? (e.g. run like hell??!) Most definately not - Snap their hand off! Solving the problem of you owning the FH and there not (currently) being a management company is a fraction of the problems you may enounter buying a flat with someone else owing the FH tim Quote Link to comment Share on other sites More sharing options...
peter_2008 Posted March 17, 2012 Share Posted March 17, 2012 Most definately not - Snap their hand off! Solving the problem of you owning the FH and there not (currently) being a management company is a fraction of the problems you may enounter buying a flat with someone else owing the FH tim Detto. Maintenance companies are gangsters and ground lease is a bxtch. You are very lucky to have the opprtunity to buy freehold. Quote Link to comment Share on other sites More sharing options...
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