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bomberbrown

Managing Agents Ripping Off Homeowners

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http://www.thisismoney.co.uk/mortgages-and-homes/article.html?in_article_id=517225&in_page_id=8

If these people don't like being ripped off, why don't they just hand in their months notice to the landlord and find somewhere else to live that's not going to rip them off? Ohhhh........errr.....hang on...

Meh! And they say renting is 'dead' money and that you're at the mercy of unscrupulous landords. At least we can just bugger off when we want to. dry.gif

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Martin Lewis's forum is full of people having to deal with letting agents who abuse their position and demand fees for renewing contracts when tenants legally can go on periodic tenancy...

he's never took this up as one of his causes... Is he a landlord or does he own a letting agency? Or is there just no money in promoting it on the soga of GMTV?

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http://www.thisismoney.co.uk/mortgages-and-homes/article.html?in_article_id=517225&in_page_id=8

If these people don't like being ripped off, why don't they just hand in their months notice to the landlord and find somewhere else to live that's not going to rip them off? Ohhhh........errr.....hang on...

Meh! And they say renting is 'dead' money and that you're at the mercy of unscrupulous landords. At least we can just bugger off when we want to. dry.gif

It says House OWNERS.

You have to sell a house that you own before you stop paying the charges that accrue on it.

Thought it is factually wrong.

It says:

"No regulation to protect people from shoddy practices" and then goes on to name the laws that do regulate the industry.

tim

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To add. I remember seeing news item after news item on the television about this type of thing in the early 90's, which by no coincidence was the last time there was a property downturn.

Basically, money dries up for these firms because business is slacking, so they start upping the fees or undergoing unnecessary work. Given the number of new-builds that have gone up in the last decade, I think this is going to be endemic during the next one.

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I don't mind living in flats but these management fees put me off ever buying. Even when you've paid the mortgage off, you're still at the mercy of a landlord demanding rent.

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It says House OWNERS.

You have to sell a house that you own before you stop paying the charges that accrue on it.

Thought it is factually wrong.

It says:

"No regulation to protect people from shoddy practices" and then goes on to name the laws that do regulate the industry.

tim

I know. Sadly, there's no <sarcasm> tags on this BB. ;)

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I'm thinking of buying a repo leasehold flat. If say i was to buy/complete in december would i be liable for the whole years service charge or just one months (as i'd expect/hope!)

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I'm thinking of buying a repo leasehold flat. If say i was to buy/complete in december would i be liable for the whole years service charge or just one months (as i'd expect/hope!)

motch, we're currently in the process of doing the same. The management company took its money each November so we thought we might be able to skip it this year. However what will happen is say you move in, in december which in your example and the annual service charge has been paid. you will get a bill for 11months and the previous owner assuming they paid it will get one months rebate (if that makes sense)

basically they will get the money from you for whatever months you are in their from.

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motch, we're currently in the process of doing the same. The management company took its money each November so we thought we might be able to skip it this year. However what will happen is say you move in, in december which in your example and the annual service charge has been paid. you will get a bill for 11months and the previous owner assuming they paid it will get one months rebate (if that makes sense)

basically they will get the money from you for whatever months you are in their from.

cheers S'tex, So it could be Nov, Dec or any months I'd guess (for mine), is yours a Repo too? Would it apply to repo's as well as just buying from a seller?

Basically I don't want to be left with a year or two's worth of service charge's to be paid for.

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I'm thinking of buying a repo leasehold flat. If say i was to buy/complete in december would i be liable for the whole years service charge or just one months (as i'd expect/hope!)

I don't mean to be funny and all that, but isn't this the sort of thing you should be asking your conveyancing solicitor all about, that is after all what you're paying them for. Make the buggers work for their money. ;)

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I don't mean to be funny and all that, but isn't this the sort of thing you should be asking your conveyancing solicitor all about, that is after all what you're paying them for. Make the buggers work for their money. ;)

I will be bomber, just getting a bit of info together and deciding whether to proceed, what with credit checks and fees etc.

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cheers S'tex, So it could be Nov, Dec or any months I'd guess (for mine), is yours a Repo too? Would it apply to repo's as well as just buying from a seller?

Basically I don't want to be left with a year or two's worth of service charge's to be paid for.

Motch, as with most things, you will only be liable for what you owe and as bomberbrown says, the specifics your conveyencer will tell you.

From a renting background to now buying from my point of view, it would be like renting a flat, and your first month in the place getting a bill for 4 years unpaid TV license. It's not your problem. Same as maintenance (spelling) charges.

Ours isn't a repo no, but next door was and it was purchased by a friend who was not liable for previous maintenance charges.

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Cheers.

Any rough ideas on costs. solicitors, valuations, estate agents fees etc.

no removal costs involved. Property under a 100k. Will be a mortgage with deposit.

Edited by motch

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Cheers.

Any rough ideas on costs. solicitors, valuations, estate agents fees etc.

no removal costs involved. Property under a 100k. Will be a mortgage with deposit.

Can vary depending on the area and the amount of work the solicitors need to do. We are in South East, not contentious issues surrounding the sale and its 1200 for sols, 160 for standard evaluation (first direct), EA fees are charged to the seller not buyer. You won't incur SD. That's about it for official fees.

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I'm thinking of buying a repo leasehold flat. If say i was to buy/complete in december would i be liable for the whole years service charge or just one months (as i'd expect/hope!)

Depends upon the (purchase) contract.

when buying a repo leasehold property it is not unknown to have to fund the whole of the previous owner's arrears which may be even more than the current year.

But normally you would expect a purchase, part way through the year, to have the the service charge aportioned pro rata

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Depends upon the (purchase) contract.

when buying a repo leasehold property it is not unknown to have to fund the whole of the previous owner's arrears which may be even more than the current year.

But normally you would expect a purchase, part way through the year, to have the the service charge aportioned pro rata

that's one of my concerns, looking at the land registry details it was a repo from about 2 years ago, but hasn't been lived in since (as far as I know) and only on the market for a few months. Obviously I'd get the solicitor to double check this is not the case.

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http://www.thisismoney.co.uk/mortgages-and-homes/article.html?in_article_id=517225&in_page_id=8

If these people don't like being ripped off, why don't they just hand in their months notice to the landlord and find somewhere else to live that's not going to rip them off? Ohhhh........errr.....hang on...

Meh! And they say renting is 'dead' money and that you're at the mercy of unscrupulous landords. At least we can just bugger off when we want to. dry.gif

They do have a legitimate beef. so called 'management' charges can be colossal - and they hardly ever mention these in EAs' blurbs for the very good reason that they'll put most people off. You have to ask.

An old aunt of Mr B's lived in a pretty ordinary 60s flat in Bognor - not sheltered, though most of the residents were on the ancient side - but 'management' fees were something like £1600 a year, and this was maybe 10 years ago.

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I am sure some people are experiencing overly heavy management charges... but there are laws controlling this so it should be easy to stop... I have a falt in a building where the insurance costs alone are £40,000 add a porter, regular planned maintenance, contributions to a sinking fund, bear in mind the building has a lift, add in managing agent charges , accountancy fees etc etc and you soon get to a pretty big sum... In other words its pretty understandable that flats have service charges and depending on the flat I can recognise these can be very big.

Where people make the mistake is not understanding what the charges are going to be going in, what they might be in the future and were historically. Equally people compare the charges with house upkeep... for a start many do this themselves which isn't possible in a block, others don't do it at all, and pretty much everyone doesn't include similar costs for a comparisson like insurance for instance.

The funny thing for HPC'ers is that a very large number of the amateur BTL'ers have been badly caught out with this... they had no idea on the way in how much service charges on an ( as yet unbuilt probably) building would be, and may not have even asked. The contract would not have specified anything.... for many they may be in an oversupply rental area, with a property that has lost significant value, where their numbers are blown even further apart by annual ground rent and service charge costs.

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  • 153 Brexit, House prices and Summer 2020

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