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YoungFTB

Apartment With No Block Management Company

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Can anyone shed any light or experience of the pitfalls of buying an apartment which currently has no block management company?

There can be several problems buying an apartment with no management in place. I would suggest you assess the condition of the communal areas and outside of the building as this can tell a lot about if the other leaseholders are pro active.

It is difficult to get other leaseholders to agree to cough up money for maintenance that needs doing and even more so if other properties are BTl as many landlords are only interested in the income.

On the plus side, if the residents manage the property themselves, this can save expensive managemnet company fees and being ripped off by them adding there cut to tradesmens costs. Check to see what the situation is with the lease. Is there a freeholder or have the apartment owners purchased the freehold collectively? do you get a percentage of the freehold on purchase? all the details should be available for your solicitor in advance of exchange. Check the terms carefully as there may be things like the external elevations must be painted every xx years.

Best of luck ;)

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CHF   

There can be several problems buying an apartment with no management in place. I would suggest you assess the condition of the communal areas and outside of the building as this can tell a lot about if the other leaseholders are pro active.

It is difficult to get other leaseholders to agree to cough up money for maintenance that needs doing and even more so if other properties are BTl as many landlords are only interested in the income.

On the plus side, if the residents manage the property themselves, this can save expensive managemnet company fees and being ripped off by them adding there cut to tradesmens costs. Check to see what the situation is with the lease. Is there a freeholder or have the apartment owners purchased the freehold collectively? do you get a percentage of the freehold on purchase? all the details should be available for your solicitor in advance of exchange. Check the terms carefully as there may be things like the external elevations must be painted every xx years.

Best of luck ;)

Might be better asking this on the all about selling board as there can be serious issues and a lot more people will see it over thre...

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YoungFTB   

There can be several problems buying an apartment with no management in place. I would suggest you assess the condition of the communal areas and outside of the building as this can tell a lot about if the other leaseholders are pro active.

It is difficult to get other leaseholders to agree to cough up money for maintenance that needs doing and even more so if other properties are BTl as many landlords are only interested in the income.

On the plus side, if the residents manage the property themselves, this can save expensive managemnet company fees and being ripped off by them adding there cut to tradesmens costs. Check to see what the situation is with the lease. Is there a freeholder or have the apartment owners purchased the freehold collectively? do you get a percentage of the freehold on purchase? all the details should be available for your solicitor in advance of exchange. Check the terms carefully as there may be things like the external elevations must be painted every xx years.

Best of luck ;)

Thanks for the reply buddy!

Thanks CHF! I just found this thread in that forum - http://www.housepricecrash.co.uk/forum/index.php?showtopic=183455

Excellent thread and it's ended any ounce of interest I'd have in buying an apartment with no block management company! I was more curious than interested tbh

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