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Purchasing The Freehold

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Just completed this process on Friday. We started in 1997. Would never have happened if a guy who did it for a living hadn't moved in two years ago and spend a whole lot of time sorting it out. Not sure I can add anything else of value, but the legal costs per flat we 1500 - 2000 (inc. valuation). Lots of other costs too ex-buying the freehold itself. We see whether we can really change the way the flats are run over time. Good to get rid of the terrible managing agent, though.

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If I were a long leaseholder of the flats where I lived, it would be the last thing I’d want is the residents to purchase the freehold. It is riddled with pitfalls.

How old is the property you wish to buy? If it is 40 years or so then there could be a lot of unattended to expensive work in the fabric of the building, which has been kept back from you by the previous owner.

Who’s going to run it, are you? Do you have time? Is there a mug to do all the worrying and bookwork? Is there someone to take the flak if something goes wrong? Right, a poster said he has a guy who knows what he’s doing, but what happens when he moves.

Some retired person could take over maybe, but what if they die or are ill.

Young working people are too busy to take this on, so you will in the end have to put it into the hands of a managing agent. “The worst managing agent is always the one who happens to be managing your estate.”

It’s it bit like the argument of sell to rent. Why would you lay out capital to find yourself worse of than when you started.

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My flats are run by the people that live there and we also have a management company overseeing things. It works out quite well as several of the residents are retired or semi-retired and don't mind looking after things. It cost about £300 each for us to get 999 year leases. There are only 26 flats so it's not a massive job and I think that they do a pretty good job. As soon as one of the renting tenants causes trouble they are dealt with severely and don't usually play up again!

The actual freehold belongs to the family of one of the residents.

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  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
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