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Residents 'left suicidal' as landlord plans to charge them £27,000 each for maintenance


200p

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HOLA441

http://www.dailyecho.co.uk/news/15099934.Residents__left_suicidal__as_landlord_plans_to_charge_them___27_000_each_for_maintenance/

For those who live in the properties there is the offer of a five-year payment plan but for those who sublet they have been told that money will be taken out in 12 monthly instalments.

The debt will also be registered as a charge against the property so that it cannot be sold without the money being paid to Aster.

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They look like ex council, and bought up by a private firm.

 

I am an Aster private tenant and have nothing good to say about them either. My house was acquired by Aster from North Atlantic/Wessex Housing Assoc. in 2014 when they spent millions buying a huge job lot of NA/Wessex houses & flats a lot of which was in sub standard condition. Since 2014 my house has not received any general maintenance and is now falling into disrepair. They then got in a management company to squeeze every penny out of their private tenants while doing minimal and mostly poor repairs and have now demanded a 2.8% rent increase across the board. Our house has now exceeded the local rental average and due to its increasingly dilapidated state is no longer worth the rent demanded. I'm fed up trying to get things done so now have no choice but to look elsewhere. Aster sent two surveyors last year to establish the house condition but refuse to state why and they leave us bewildered and confused as to their intentions. The second surveyor admitted that Aster were behaving very badly towards their tenants and said " well these properties are cash pots for their other interests so nothing will get done". I wish the best of luck to these poor people but they will get no where in their quest for information from Aster. I'm lucky in that I can and will move on to a better house and landlord as renting gives me that choice but I have to say that Aster have turned out to be the worst landlord that I've ever had.

Edited by 200p
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HOLA448

To be fair, when I was young and stupid I bought a leasehold flat as no one, not even my solicitor, explained what a millstone it could become.

Leasehold should be outlawed.  Australia has strata rules, which whilst bringing their own problems, are miles better than feudal UK hangovers

 

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Leasehold can be OK, provided that you get a share of the freehold as well, and you have a group of residents who take an interest in management and either do the management themselves, or sub it out to a property manager who can be kept on a short leash.

I lived in a place like this, and it was fine. The residents (mainly professionals, professors, lawyers, etc.) found a remarkably competent estate agent as property manager, who proved very effective at keeping on top of maintenance, and seemed to have enough contacts to find local engineering firms to rebuild and maintain custom-engineered plant where the original builders had disappeared.  When I sold the place, the management company accounts showed that there were no significant arrears, and that there was a substantial major works fund. 

The problem is that if you don't have a group of interested residents, it becomes possible for predatory investors to buy the freehold and milk you for the ground rent, or bring in their own management company who will take pleasure in taking you to the cleaners. Yes, the residents have the right to appoint their own property manager, but you have to have a majority of leaseholders in order to do this. In sites with lots of BTL and absent landlords, it can be difficult to achieve this.

A particular problem has been ex-council. Often, these buildings have been poorly maintained and were often built down to a price, the residents also tend not to be the type who are interested in buying out the freehold or taking over the management, as a result, massive works bills are only a matter of time (even if the freehold remains with the council), and this can get worse if investors buy it out.

One thing I have noticed recently is that there are a lot more houses being sold leasehold. This tends to be because there are shared facilities (e.g. a shared drive, mews, or some other infrastructure, such as  surface water mitigation), is required. Leasehold is the easy way to deal with the maintenance of these facilities. Having a relative who owns on a private (unadopted) road, maintaining the road is a big problem, because if a property owner doesn't want to pay for upkeep of the road, then there is no way you can stop them free loading, hence you get constant fights about the maintenance of the road, and the worry of who pays if the road falls into disrepair causing personal injury or damage to a car, etc.

The latest trick has been the recognition by developers that solicitors and surveyors may not necessarily know how to value a lease or advise the purchaser of it. Having been looking at properties recently, I've spotted some leases which would have cash values in excess of £100k - which no doubt the developer was trying to sneak in under the radar before selling it off to a predatory investor for a cash sum. Again, with this sort of lease cash value, it would be challenging to achieve a critical mass of residents to buy out the freehold, in order to mitigate the predatory investor problem.

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41 minutes ago, Motor_Blade said:

I was surprised to find out that Scotland has got rid of leasehold, just England & Wales that haven't. 

I've lived in Scotland 50 years now and never realised the distinction between leasehold and freehold until I became an HPC forum reader and then member in the past 10 or so years. Until then I was only aware of freehold....my understanding of that is you buy a house or whatever (either outright or mortgaged) then it's "yours" and no one else has a say.

From what I've read I would never buy a place with a lease. That's just not on. Ripe for being milked!

 

 

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2 hours ago, Economic Exile said:

I've lived in Scotland 50 years now and never realised the distinction between leasehold and freehold until I became an HPC forum reader and then member in the past 10 or so years. Until then I was only aware of freehold....my understanding of that is you buy a house or whatever (either outright or mortgaged) then it's "yours" and no one else has a say.

From what I've read I would never buy a place with a lease. That's just not on. Ripe for being milked!

 

 

That seems to be most people's understanding too, and sadly some of them are being milked by the greedy. On this matter I salute the Scottish government for that most rare of things - a sensible policy that actually benefits the people. 

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13 minutes ago, Motor_Blade said:

That seems to be most people's understanding too, and sadly some of them are being milked by the greedy. On this matter I salute the Scottish government for that most rare of things - a sensible policy that actually benefits the people. 

I'm not sure that the snp care about the people. Probably not! They're just another political party!

Regarding freehold in Scotland I think it may always have been that way and I don't think the snp have done anything much except maybe to reinforce it in some way. I really don't know perhaps someone else might?

I think snp like freedom to roam and there isn't much problem about roaming about in Scotland in my experience but again I'm not sure about details of their plans.

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Yawn tbh.

I think I knew the difference as a kid.  

Leasehold.  Freehold.  Only one of most important decisions in life, buying a property.
 

Quote

 

4 September 2015


The formula is complicated but it takes into account the type of home, its location and condition. You can expect to pay an extra £10,000 on a £200,000 property for every ten years you leave extending the lease after it has dropped below 80 years. Those with less than 50 years to run face the biggest bills.

 

  • The £13,500 for 82 years is only £3.17 a week, bargain really.
  • I sympathise with these people as I too found out recently that the home I am renting means that I don't actually own it.

http://www.thisismoney.co.uk/money/mortgageshome/article-3218828/Cramlington-town-costs-13-000-sell-house.html

 

On 6/10/2014 at 6:52 AM, winkie said:

Leasehold means you are renting the most expensive commodity the land, still stuck with all the debt, lack of maneuverability and all the responsibility. ;)

 

On 6/10/2014 at 7:15 AM, Digsby said:

Very true winkie, and prices are barely, if at all, cheaper. There's some seriously foolish buyers out there.

 

On 6/10/2014 at 9:23 PM, MattW said:

I can see other councils following suit. Will probably sent the value of leasehold properties plummeting. :unsure:

 

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5 hours ago, ChumpusRex said:

...One thing I have noticed recently is that there are a lot more houses being sold leasehold.

Aware of that too (newbuilds), and I think there has been some political pushback (?) in recent times, because the costs can soar.

Yet what can you do - no one dragging anyone into buying these newbuilds (at these prices).

From the other thread I linked to... I did find this interesting, ChumpusRex, although it makes sense, and I thought it must be something like this when a lease runs down.

On 6/23/2014 at 3:01 PM, ChumpusRex said:

You can always negotiate a lease extension. In some case, you may have a right to renew, in which case the freeholder cannot refuse an application for renewal on "reasonable" terms.

If the lease does expire, it reverts to a monthly rolling tenancy, just like a conventional tenancy agreement;the freeholder needs to provide notice of rent payable, etc. In advance.

Just remember that the freeholder can charge a renewal fee equal to the resultant uplift in market value of the lease.

Effectively, you'll be paying market price for a similar property unencumbered by a short lease. This can be a big windfall for the freeholder, as effectively they get the HPI.

 

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Quote

Kingsway Gardens residents in Andover received letters from Aster Group detailing works to be carried out on Saxon, Stuart, York and Tudor Courts 

 

A quick look and I'm picking up postcodes for Saxon and Stuart Courts.... all lower-end market-values in recent times (well, against raging HPI), and obviously all flats there selling for far less pre-bubble 1.0.

Archived old For Sale listing, 2012...

Quote

 

Added on Rightmove:
21 November 2012

2 bedroom flat for sale
Saxon Court Kingsway Gardens, Andover, SP10
£119,950


Suitable FTB Or Investment
Full description
Tenure: Leasehold
INVESTMENT BUYERS! FIRST TIME BUYERS! MUST VIEW! A well maintained two bedroom flat offers spacious living accommodation. Benefits include a good sized kitchen/dining room with good worktop space and a range of high and low level units fitted around the room. 

http://www.rightmove.co.uk/property-for-sale/property-36562675.html

 

Sold Prices Postcode Saxon: http://www.rightmove.co.uk/house-prices/SP10-4BU.html  

Sold Prices Postcode Stuart:  http://www.rightmove.co.uk/house-prices/SP10-4BH.html 

On Rightmove at least, nothing for sale or for rent in either postcode.

If the leaseholders have a case, hope they push back and get costs reviewed/lowered.  All depends.  

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8 hours ago, wherebee said:

To be fair, when I was young and stupid I bought a leasehold flat as no one, not even my solicitor, explained what a millstone it could become.

Leasehold should be outlawed.  Australia has strata rules, which whilst bringing their own problems, are miles better than feudal UK hangovers

 

What does strata mean please

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2 hours ago, Venger said:

Yawn tbh.

I think I knew the difference as a kid.  

Leasehold.  Freehold.  Only one of most important decisions in life, buying a property.

 

 

 

Gotta say too true it's not hard is it Enterprise don"t sell you a car and Bristol street motors don't rent them to you ...

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14 hours ago, 200p said:

They look like ex council, and bought up by a private firm.

 

I am an Aster private tenant and have nothing good to say about them either. My house was acquired by Aster from North Atlantic/Wessex Housing Assoc. in 2014 when they spent millions buying a huge job lot of NA/Wessex houses & flats a lot of which was in sub standard condition. Since 2014 my house has not received any general maintenance and is now falling into disrepair. They then got in a management company to squeeze every penny out of their private tenants while doing minimal and mostly poor repairs and have now demanded a 2.8% rent increase across the board. Our house has now exceeded the local rental average and due to its increasingly dilapidated state is no longer worth the rent demanded. I'm fed up trying to get things done so now have no choice but to look elsewhere. Aster sent two surveyors last year to establish the house condition but refuse to state why and they leave us bewildered and confused as to their intentions. The second surveyor admitted that Aster were behaving very badly towards their tenants and said " well these properties are cash pots for their other interests so nothing will get done". I wish the best of luck to these poor people but they will get no where in their quest for information from Aster. I'm lucky in that I can and will move on to a better house and landlord as renting gives me that choice but I have to say that Aster have turned out to be the worst landlord that I've ever had.

This is what privatisation of anything was about.

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Yet folks cannot get enough leases in other areas. 70%+  of new cars are leased.

Theres also the bank cartel who own the leased car motobility scheme (10% of all new cars bought) ,  as a middle man between manufaturers & Gov. 

Go over that 6-10k miles a yr & it's 10-20p a mile extra 

I've also found the " jointly & severaly liable" clause in a rented shared house to be a bit unreasonable 

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10 hours ago, Economic Exile said:

I'm not sure that the snp care about the people. Probably not! They're just another political party!

Regarding freehold in Scotland I think it may always have been that way and I don't think the snp have done anything much except maybe to reinforce it in some way. I really don't know perhaps someone else might?

I think snp like freedom to roam and there isn't much problem about roaming about in Scotland in my experience but again I'm not sure about details of their plans.

Leasehold was the same in Scotland until 2012 when the Scottish government abolished it - all remaining leasehold properties at that time were converted to freehold. Well done Scotland. 

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