Listen to her words....i was in the same situation pretty much word for word... The lease conditions.... The service charges, selling it is a nightmare, the hidden fees that crop up from the freeholder and property management company are sickening.... Don't ever buy a flat people.
If you buy a leasehold, you're buying nothing. You're basically just agreeing to rent the space from the land owner at a hugely inflated price for a long period of time. Apparently the UK is the only country that operates this archaic system. You also have no real control of what the management fee gets spent on, or more importantly doesn't get spent on.
@@NicoleSage I found out that such things have a serious, and detrimental impact upon mental health. It wasn't just when those people were in the flat below me, it was also when they weren't there and I was DREADING that first slammed door which would announce their arrival from work. Which meant another evening of hell for me. At one point I was so desperate that I put on the Iowa album by Slipknot (great band, BTW) and I had a SERIOUSLY good music system and put it on full blast. Within seconds you could hear scurrying feet from downstairs as they left their flat. Didn't hear them again until the next day! I always actually listened to my music wiht headphones on (and still do) as I don't want to be the kind of prat that drives my neighbours nuts, but they really deserved that. I didn't do it again because it wasn't fair to the other neighbours, but I felt I HAD to do something otherwise I would have gone down there that evening and done something I would REALLY have regretted. PS: just realised that I was responding to you about another post on another video you made. The above relates to my 3 years of hell over noisy neighbours.
Before you make an offer on a flat do two things. 1. Ask the agents to write to you with the balance of the sinking fund. If it is low or nil then get advice from an independent professional as the what the risks could be. 2. Ask the agents to provide you with copies of the minutes for the last 12 months' management company meetings. You'll then see any important matters that are discussed. Could be anything such as the need for a new roof, noisy owners, subletting problems, parking problems. Some might be trivial, and others may put you right off buying.
Find out the balance of the sinking fund and if it is low or nil, RUN! Seriously, walk away from the purchase. When the cyclical works (done every five or seven years) become due, or the property needs roof repairs or new windows for example, you'll be landed with a bill for £20k, £50k, £100k or even more, split between the leaseholders. Even if the freeholder or managing agent is at fault, by not having collected enough money, you can fight it all you like but you will ultimately still have to pay the bill. This happens all the time and no matter how unfair it is, the law is on their side.
@@raidermanuk Very good advice and I say this as a leaseholder and residential director. You get a good indication on matters money gets 'wasted' on because of resident behaviours or bad property manager/management co decisions, dodgy maintenance and also if excess was ever required on top of service charges.
I vowed never ever to buy another property in the UK, regardless of whether it was freehold or leasehold. That was in 2010 and I kept that vow. I rented a bedsit in London, just about breaking even each month, for 8 years. That way, I could get up and leave any time I wanted to. In 2014, I started research on emigrating, initially looking at South and Central America. After 2016, that changed to a Eastern European countries. I moved to Bulgaria in 2020, escaping a country (the UK) destined for totalitarianism. I've never looked back - bought five properties here for cash, one I and my family live in, the others are rented. No mortgages, no loans, no leaseholds. Services charges of just £8 per month on the largest property. Council tax equivalent of £10 per month. Utility bills one tenth that of the UK - yes 90% less! My average electricity bill for our 3 bedrooms maisonette, which includes heating, cooling, hot water and everything else is £75 per month and we don't try to save much electricity - 2 adults, 2 kids, 4 cats. Water is an average of £29 per month. Personally, I think living in the UK is utterly nuts now and I will never be returning. My friends all agree, I did the right thing. I have an infinitely better quality of life and a significantly safe one too.
Thank you so much for sharing this, in recent months the drive to live outside of the UK has grown even more apparent for so many reasons for me so this was very interesting to read and food for thought.
@@NicoleSage you're absolutely right, there are so many reasons. I posted something on FB a couple of weeks ago, with 32 reasons - I could have added more. It's somewhat interesting that the Global Peace Index, now lists nine Eastern European countries in the top 30. The UK is now lagging behind in 37th place. With the problems that the UK is encountering, getting worse still, I'm predicting a further fall for 2024. Bulgaria is 30th (Romania 31st). Slovenia came 8th and Czechia 12th.
A couldn't agree with you more, wishing you all the best and Good luck. I moved to Eastern county myself in 2008 I am sooo happy and feel very safe too which is top priority for me, BUT, a big BUT..my kids and grandkids want me to come back to UK 😢 I really don't know what to do, half of me wants to for my kids sake, but the other half ? No I do not want to come to Broken UK !!
🎯 Key Takeaways for quick navigation: 00:00 🏢 Leasehold properties in the UK explained, highlighting that owners hold a lease agreement, not the full property. 01:37 🏠 Proponents of owning a UK flat include affordability for single buyers and low maintenance managed by an agency. 06:08 ⏱️ The longer the lease, the better. Lease extensions can be costly and complicated. 07:59 💸 Costs of owning a flat include service charges and ground rent. Ground rent can complicate buying and selling. 11:54 🔊 Consider the physical and social aspects such as noise, neighbours, and challenges with Airbnb properties in the building. 14:42 📑 The selling process of flats can be longer than houses due to needing detailed information from the lease amd potential deed variations. 15:25 📖 Final thoughts recommend weighing pros and cons, considering legal factors, and being aware of financial strain from increasing service charges. Made with HARPA AI
Since I’ve owned my leasehold flat 2006 the sinking fund has disappeared year on year until 2019 the managing agents requested the first £1000 contribution from all of the 28 flats in my block and have more than doubled the service charges. Trust me they’re on a nice little earner even taking a cut from the car parking company who act like the Talliban in policing the grounds with our cars at 4-30am one Sunday morning issuing a £100 ticket. My flat is on the market for sale- if it doesn’t sell I’ll put it into auction. Life lesson and a piece of sound advice,, don’t , don’t buy a leasehold unless you want non stop rising bills . Rent it.
Me and my wife bought a flat about 2 years ago and although our original plan was to buy a house, due to the location of that flat, we decided to go for it. Now I was well informed about the cons of buying a flat, but one thing I didn’t take into account was how difficult it will be dealing with the management company (they were put in place by the freeholder). You quickly realise how helpless you are in terms of what they charge. Our building is less than 10 flats yet we pay over £2500 each flat a year, we have no lift or electric gate, we literally pay for once a month cleaning the hall way and emergency lighting near the entrance. We are now going thru RTM process to get rid of the Management company and we have to fork out another £3000 for solicitor fees. My advice to anyone, stay away from flats. It’s not worth the stress!
So sorry you're going through this now, the managing company is the worst, as you say you have no control over what they charge. Keeping my fingers crossed for you with the RTM process, it's all a money game with them!
I agree. Continental European countries do not have such concept for flats and apartments. I suspect landlords with 900 headleases in the UK would resist.
How would you manage no leasehold in a block of 40 flats? Good luck getting anyone to pay up or organise maintenance. If you have a small block of flats, it can be easy to manage (if everyone is reasonable, middle class and has money). Flats are a terrible idea in any country. Only countries that make it work - the Government owns them i.e. Singapore. But then you never have equity. It's a trade off.
@@chrisjie2127 Agree - fuck flats I would rather rent for longer for house deposit than flat and put myself at risk of assholes neighbours which you cannot predict until its too late
@chrisjie2127 Continental Europe, Japan and Korea all have no leasehold flats and large apartments developments. Runs much better and less disputes than leaseholds. All the issues you raise can be addressed by modernisation of UK law.
UK leasehold is such a scam! You don't actually own anything, pay rent to 3 landlords instead of one, and responsible for all costs, repairs and even insurance which makes profit for the freeholder. Scam x 3. Plus service charges that go out of control and cost an absolute rip-off.
Yes. I heard that in some places in London, flat owners were paying over 15 thousand a year in standing charges for a flat, that's while trying to pay the mortgage too! That's not even taking into account the utilities and other bills. I don't know how people can afford it.
That was a very informative video. "Leaseholders are not favoured at all by the government", I'm pretty sure your statement is true. Why would MPs change anything for leaseholders, its how many of them make their additional income on top of their £86,584 MPs salary. Owning the freehold of buildings is extremely lucrative in our 'unfettered' capitalist 'grab what you can' economy and MPs have their noses in that trough.
Thank you! Agree with everything you’ve said, leaseholders absolutely aren’t favoured, it’s a total disgrace and it’s why I just don’t think they’ll do anything about it, I always wondered why people would buy freeholds of property until the penny dropped, the fees are uncapped and they aren’t regulated, awful system
On top of everything, these modern built apartments are made of rubbish (no air circulation, low bills in winter, but mould on the back of the furniture although I keep windows open, low ceilings). I can see how roof already needs repair after 5 -10 years. I am renting, but I would never buy this apartment. They might look nice on the outside, but you can hardly breathe inside without windows being open.
Ugh yes. New builds are notorious for this, they’re thin walls, not built or ventilated properly and a proper fix is hugely expensive. Very glad you are only renting though
To be clear, this excellent and informative video is about flat ownership in *England*, not in all of the UK. The presenter more or less conflates owning a flat with having a leasehold, and owning a house with a freehold (although she does mention that houses can be subject to leasehold as well). This is indeed the most common state of affairs in England (and, I think, also in Wales), but in Scotland, leasehold is extremely rare. Rather, when you own a flat in Scotland, you own your own flat, plus a share of the communal spaces. (A similar model does also exist now in England, called 'commonhold'. This was only introduced relatively recently.) Usually, there is an owners' association that contracts a 'factor' to carry out maintenance and collect the corresponding fees. This is, in fact, how flat ownership works in many countries! I should add that in Scotland, how well this system works can be a bit hit or miss. Some buildings are very well organised, but if they aren't, it can be the cause of major headaches.
£1,500- to £2,000 service charge a year is insane, by the way. No wonder flat ownership is so unpopular in England. I always thought it was mostly a cultural thing that made British people love their little semi-detached in the suburbs, but you've shone a light on all the ways that leaseholders are screwed over, which is surely a big part of it as well
Thanks so much for your comment, you're absolutely right that it's actually 'England' affected by this, although I am not too aware of the Scottish system myself. Yes, leasehold is a terrible system and hopefully this will educate anyone who still wants to embark on a leasehold property to save stress and a lot of money down the line.
Thanks for that! As a Scot, l was getting very confused about all this information that l had never heard of! Sounds a real nightmare and very costly in England😮
I heard that many of those beautiful tenement blocks in Glasgow have fallen into severe structural disrepair due to problems "enforcing" repairs where neighbours don't agree on these matters or don't care. I've bought and sold 4 flats in London in my lifetime. The best managed were actually leasehold with good management structures in place. The last flat I owned was "Share of Freehold" (I had bought a lease with a share in the freehold). The share of the freehold which each resident had was what caused the problem...people veto-ing repair work that they considered were not necessary "I'm not paying for that...I won't be still living here in 2 years". Sometimes it's better to have a fair and well-planned constitution imposed and enforced, preferably on a 999 year lease.
I recall owning a flat 30 years ago,on the ground floor in a block 3 stories high.The first thing I noticed was the noise of other flat owners coming and going,as the main entrance door was near my front door.This gets a bit annoying when people have friends round and they leave at night, and chat and laugh at the main doors for 10 minutes usually at 11pm. Then the owner of the flat upstairs left the bath taps on,which eventually flooded my bathroom immediately underneath. No one knew how to contact him, and the situation got desperate.I contacted the freeholders but they refused to disclose his 'phone number,under some Data Protection Act.After a lot of begging they 'phoned him direct and he returned several hours later and turned off his taps.I can't recall how I sorted it out but another problem with flats is the lack of ventilation,especially in bathrooms,kitchens and toilets. The list of petty but annoying incidents almost every month was enough to put me off buying a flat again.
Oh god, it sounds exactly like what I put up with in my flat. I was also on the ground floor and lived with 3 airbnb properties, no escaping it, but luckily didn't have to deal with any flooding, what a nightmare. Very glad it put you off buying a flat again!
Hello Nicole. Listening to you was certainly an education for me even though I've been through the rigmarole myself. IMO, by far THE biggest problem in flat ownership is your bloody neighbours!!! I eventually sold my 2 bed, X council flat in a very leafy suburb of N LDN back in Jan 2019. To say selling it was a headache would be the understatement of the century. I listed with 3 different estate agents, one after the other, as the first two were complete numpties but even with the third agent the sale fell through 5 times. On top of this, as i mentioned, i was also dealing with my ground floor neighbours. For the last 10 years of living above them they managed to destroy my life, so much so i decided to implicate a reduction in sale of £90,000 in order to secure a quick buyer. Yeah....i lost £90,000 just to get away from those animals below me. Anyhoo...this taught me a valuable lesson, NEVER BUY/LEASE A FLAT, more so in stinkin, frickin London! Needless to say, i now own...OWN a wee cottage in the west country. My sanity is slowly returning. All the best honey. P.S. Plymouth's lovely 💕
Thank you so much for your comment! Oh my gosh, I am so sorry you have been through this, I was very lucky I only had to deal with mine for 6 months but it truly felt miserable, I never wanted to come home. Despite your loss, I am so pleased you have managed to sell and get out of leasehold, you never think you'll have neighbours from hell until you do. Your cottage sounds gorgeous and the West Country too!! You certainly appreciate it all the more when you come from an awful experience like that!
I know EXACTLY what you mean. I lived in a flat for 17 years and for the last three years it was HELL. The bastards in the flat below didn't just slam doors, they SMASHED them shut. And then the music which literally had the ENTIRE block shaking over it's 4 stories....and I was right above it! I complained to the flat owner (as it was rented to them) and he didn't give a crap. I complained to the council, and they didn't give a crap. At one point it got so bad I was thinking daily about doing really bad things to the flat below, but thankfully I managed to refrain, otherwise I would have been in jail. Creatures like that should be up against a wall and machine gunned. Even now, 11 years later and now living in a house, if I hear a sudden loud bang then, just for an instant, I'm mentally right back in that flat. I curse them for what they did and can only hope that something terrible became of them.
@@bobjames6622 oh mate. I do hope you've now found some much deserved peace. Yes.....the door slamming! My flat was a first floor maisonette with floor board partitioning. You can imagine can't you. I was a Turkish family of 8 (mother, father, three young daughters a teenaged cousin & the father's parents) in a two bed flat! Their extended family & friends would congregate every single weekend & school holidays increasing the number to roughly 20+. The flat was sublet through a different council so no amount of complaining resulted in any action. Their rear garden which my flat looked over was a dump to say the least & during the summer months when our windows were open the smell from below rising up was indescribable. They vandalised my car, smashed up my bins & constantly accused me as a racist. The whole time I was caring for my elderly mother who was battling her fourth bout of breast cancer & a brain tumor. You can guess that my fingers were firmly X'd when the flat was being viewed for sale. I never thought I'd ever get out, so much so that my mother & I agreed on a suicide pact if things carried on the way they were. When the flat finally sold we were homeless for a while living out of Premier Inns until I made the decision to move to the west country & look for a cottage to buy out right with what was made on the sale. We weren't entitled to a mortgage so it was find something within our budget or rent. This time the heavens were on our side for a change. Yes, the cottage is teeny weeny but it's mine. It SO quiet it was a shock to the system & I'm surrounded by lush green pastures, beautiful blue stone homes, horses being ridden up & down out front & neighbours I thought didn't exist in real life. One of which is the late Una Stubbs' brother. He's a potter. 4½ years now & what can I say apart from I've become someone new. I'm glad you've been able to move on too. I hope for the better! Big hugs Bob.
Beware of service charge increases, they can literally double in a year. Always look at the previous service charge costs (solictor should provide during purchase) and see how much they go up each year. You'll need to factor that increase every year at a minimum as part of your annual budget.
My lease holder tried to get me to sign a new doubling lease That doubled every 5 years And I’ve read many builders are adding these doubling leases on new build flats Yes my lease was only 250 a year But with the way doubling compounds 250 5 years 500 10 years 1000 15 years 2000 20 years 4000 25 years 8000 30 years 16000 35 years 32000 Friggin flat only worth 80k These properties will become worthless
I'm currently saving a deposit, and doing everything I can to avoid leasehold (ie. flats), even if that means having to save for longer. Maintenance charges. Lease issues / extension costs. Cladding issues. No thanks. I'd rather pay "dead money" renting whilst I try and get a freehold property. Leasehold is an outmoded, feudal system that almost no other country uses. Scrap it.
You are still losing money then what’s the point? As long as a flat isn’t in a massive housing block with lifts or has a horrendous service charge/ground rent that goes up each year (which you can check prior) why not buy a leasehold? The system sucks but you can still play your cards right and not loose money… unless you are investing elsewhere in the meantime I guess
"Armed with the knowledge". "If you are in doubt, walk away from it." You are very generous to share what you have learnt at your own expenses. Thank you very much. Personally, I feel sick of it all. However, we have to keep on going. People like you are actually helping to clear the air for now.
Thank you for watching, it's a disgraceful system which affects millions of people and enough isn't spoken about it!! Lets hope reform comes along soon to provide some relief
My service charge is DISGUSTING. Very expensive and constantly increasing year on year. The ground rent thankfully is peanuts. But the service charge is like I said, pretty disgusting.
@@gemma8611the service charge is disclosed when you buy a leasehold, as are plans to increase it and the general trend over the last years. you can easily buy a leasehold with manageable service charges unless it is something you overlooked while buying
Regarding the neighbours: unless you have detached house, you need to look very closely at the neighbouring properties. If one or both are rentals (to students would be the worst) or one house is derelict, then you are in for trouble.
It's definitely a problem in flats AND houses, peeking in the garden and outside area is always a precursor, and driving by at different times in the day
Living in the. United States, I was fascinated to hear all the complexities of owning a flat in the UK. The normal process here is to rent an apartment for a monthly fee for the duration of one’s lease. Is that also an arrangement there? If so, what is the advantage of buying a flat? Also, I’d read that in the UK, mortgage interest rates on houses re-set every one, two, or five years (unlike here where the typical mortgage is for 30 years at a fixed interest). With the current spike in interest rates in the UK, homeowners must be panicking as they approach their re-set. Anyway, good vid, thanks.
I bet it was! Yes, we do have the process here but only if they are renting the flat rather than getting a mortgage for it. In my eyes there really is no advantage!! Really you only win if you have a share of the freehold, so you aren't controlled by someone above you. Yep, that's correct! It fascinates me that the US has such long mortgage terms. When we get a mortgage we can choose what amount of years we like, usually the very short ones 1 years, 2 years have higher rates than the longer terms. Because of this, landlords whose mortgage terms are coming to an end are having to sell up because the rise in mortgage is something they simply can't pass onto the renter. Thanks so much for your comment!
I got a lost listening to her I'm from the US as well it just seems so confusing you buy a flat but you're not really buying anything you just buying a lease .
in UK you never 'own' a flat and you only take is for 'lease'. I am originally from India and came here 14 years ago. I was utterly surprised seeing the size of the rooms which are nothing but hobbit holes. British love saying 'good sized' rooms which is left to your imagination. There is another crazy thing in London. Have you heard of 'shared ownership'? That means you own a % of the flat and pay ground rent on the rest. Basically worst of both worlds!!
Leasehold should be avoided at all costs. Nothing but a mortgaged tenancy with uncapped charges on top ..better off renting. Flats are also the most exposed part of the market and are already tanking in value.
100% agree with you, renting is so much more favourable than leasehold, you know where you stand to a certain degree and you can walk away when you want.
Great video. Im glad I sold my flat several years back, felt like the flat was never actually my home. The mantainance was going up each year, around 7-800 GBP per year when I sold (excluding yearly ground rent - which is another complete con), the residents had no say in the expenditure it was pretty much dictated by the property mantaininance company, one example is the residents had to pay for fences to be erected on a peice of land opposite the block to protect a strip of green belt from deer.... god knows why that was our responsibility, and this was 15 years after the flats had been built! There were pros and cons, in my situation id say more cons. The flip side of living in a block which is in a desirable area is that if youre on a ground floor flat and above you - you have airbnb flats you have to listen to the sound of people dragging cases up the stairs every couple of days (unless you have a lift). Knowing what I know now after owning a flat if it came to it I think id rather live in a van - id have much more control over my destiny and expenditure. There are and will be a lot of factors which are out of your control.
Thank you for watching and sharing your experience, that sounds awful - completely relate to the feeling that it never feels like it's your home, so glad you managed to get out of leasehold too and I'm with you on living in a van, you have no control over leasehold, and rising fees, the freeholder always has you where it wants you
My daughter is buying a flat for £50000 in Morocco. It is a 81 sqm beautiful apartment in northern Morocco . A nice neighbourhood and only 20 mins walk to the beach. Young people must look at other countries and opportunities. As a digital nomad she loves Marrakesh and Essaouira. Airbnb is a great way for her to pay £30 a night in these towns when she visits the south.
@@D-A-H8585 Any European or a American can buy a house or property in a town or city in Morocco. Moroccan banks ask a foreigner for 30% deposit. You can get a loan from Morocco.
Of all the places she could have purchased or lived...I wonder what she likes....hmmmm. She is not a digital nomad if she is buying you igit! If she asked you for money to buy it, its because MOh (secret boyfriend )has told her. "am a digital nomad but am buying a flat in a country with no rights for woman" you really are a melt! Let me know how it went!
We bought a flat back in 2016. I insisted on the property having a share of freehold and not a horrible leasehold new build so we found a nice top floor Victorian conversion in South East London. Being on the top floor gave us the opportunity to extend into the loft which gave us an extra 2 bedrooms and 1 bathroom. My advice is to stay well clear of new builds and lease holds and only get a flat with a share of freehold. Why spend all that money and not own a share of the freehold- makes zero sense?
I am a bit confused on this one. I have seen flats in my area (South West) which are house conversions. They state that the owners have a share of the freehold and that there is no ground rent but then the lease is stated as 250 years since year x. I just don't get how there can still be a lease when you own a share of the freehold. Any thoughts?
@@georgesotiriou7051 yes its all very confusing. The share of the freehold in our flat also has a leasehold but our leasehold is 999 years for all parties so for all intents and purposes its one that lasts forever. I guess we were lucky in that regard
Great advice. I'm a single, white mail living in a freehold semi detached house but was attached to a neighbour from hell and ended up suffering a mental breakdown. Not because of the neighbour but they certainly didn't help me feel great. You're neighbours and area play a significant part in any property I would say they are number 1 but affordability will take priority for 99.9% of us who live alone,never mind have a family and kids etc
That sounds awful, neighbours are by far the worst thing whether it's a leasehold or freehold as you can't escape it. Hope your situation has got better since then, it's really difficult being a single buyer as options are more limited for sure
@@keys6 yes... but the worst ones are those you share a wall or access too.. trust me. Most if all people can ignore the headcase 3 blocks down but you cant escape it if your nextdoor
I grew up in Plymouth so when you mentioned Plymouth (this is the first video I’ve seen of your’s) it brought me back. After moved out of my childhood home I rented on Ebrington Street for a while, while I was at uni and a few years after. I’ve been living in Cornwall over the pandemic and earlier this year I bought a ground floor flat in Redruth. Not where I intend on being but what I could afford. It’s a lovely little flat though so I don’t mind. Only 2 stories and all the downstairs flat have their own doors (no external/ internal door). Which I love. A communal garden. The payments aren’t that bad, (especially for what we get) hopefully they don’t increase or increase by much next year. I’m single and disabled so right now it suits me great. 980 years left on the lease so that’s great! Despite all this I definitely agree with everything you said and would much prefer a house next time if I can afford it. Personally my main downside is despite the fact it’s only 20 years old, god I can hear everything my upstairs neighbour does.
Oh wow, what a small world! Congrats on getting your flat, and it sounds like you’ve got a really great situation with the super long lease and payments, it definitely makes a huge difference who the freeholder is and of course the lease length which won’t cause you any problems when you sell in the future. Oh god the noise and floorboard sounds are the worst, I was in a Georgian flat and whilst the walls were thick blocks the overhead noise was something else! Thanks so much for watching :)
Well done on this video. Very clear and informative. If you buy a flat it is a huge advantage if it is ahare of freehold. It is sad to see so many very young people who want to leave because of housing costs but are finding it more difficult as Great Britain has left the single market. When I speak to people in continental Europe they are shocked that a leasehold system exists in the UK. Sadly property in continental Europe is in general so much cheaper than the UK particularly outside capital cities.
Thanks for watching, yes totally agree, share of freehold is always better. Totally agree, the system is so medieval over here, other countries can't get their head around it, worst system ever
Slightly off topic (as its not about flats) but one thing I would be VERY careful about is buying an old Victorian terrace that doesn't have proper wall/roof insulation. I used to own a 2 bed freehold terraced house that was HORRENDOUS during the winter months. I had to keep the central heating on 24 hours a day (£££££s) over the winter months because the insulation was so bad (it was freezing) and even then it was only about 14-15C indoors.
This is very true, and a lot of houses like this are sold during the summer so the damp issues aren't visible, also paint covers a lot! Victorian houses are notorious for this, we have a Victorian terrace house now and it had awful damp last winter, usually to do with poor ventilation
My reverse freehold flat was great. Lived in it for 12 years fairly problem free give or take a few things. I was lucky I think. It doubled in price in the 12 years and then I bought a big house. I would never buy a leasehold flat though with management company, ground rent, the nightmare lease extensions etc. My lease was 980 years or so. I’m glad you are warning people of the awful pitfalls of leasehold flats that aren’t reverse freehold. I live in Plymouth too btw😊
How interesting, I've never come across reverse freehold before, I'm glad you managed to get out when you did and you had a very very good lease which absolutely helps. Thanks so much, and wow, hello from Plymouth! :)
@@NicoleSageit’s basically just another name for shared freehold. So myself and the person who lived above me would share the costs of the building maintenance. It’s all well and good until you get someone who doesn’t want to cooperate or pay. Thankfully I was lucky and I never had any issues with that, but it is still a risk nevertheless and I was always nervous about who would live upstairs as it sold 3 times in the 12 years I was there. So so glad I live in a house now. My selling process was very long and arduous and solicitors in Mutley (Curtis Whiteford Crocker) were terrible. Your videos are fantastic and will help so many people. I went through absolute hell during selling like you did, but for different issues than yours. Thanks so much for helping people and warning them in advance 🙏🏽
I currently purchased a leasehold maisonette privately and has an absent landlord who went bankrupt and the property comes with a peppercorn ground rent and a title absolute. A win win in my eyes. I was faced with a few challenges but I worked as an estate agent for a number of years which helped me navigate the sale.
Lots of mortgage companies will not give a mortgage, if the service charge per annum, exceeds 2% of the asking price. A friend of mine encountered this difficulty trying to sell his flat. He is still trying to sell now.
@@NicoleSage unfortunately it is a problem, meaning people can be trapped and unable to sell. Or have to sell ridiculously low and cash buyers only as it becomes impossible to get a mortgage on the property
1% on my property. My lease also contained a doubling ground clause which my solicitors failed to mention when I purchased the property and ended up costing mr thousands to do a deed of variation. Leasehold should be outlawed or renamed scam.
Bite the bullet and extend your lease and get rid off the ground rent. This will in most cases get the free holder of your back. Use the law to free your ground rent. Only buy lease hold flat's or houses if you have no alternative. Never buy any lease hold with 10 year doubling ground rent. Great insights and excellent advice 👌 👏
Yes, totally agree, if you can get the lease extended, will be worth it in the long run and make the property saleable, thanks so much for your comment!
@nauxsi if you have doubling ground rent's and even if your lease is 999 years renew it to get rid of the ground rent. It will save money and you will get peace of mind.
@nauxsi so renew the lease and get rid off it. Just wait till the next election and see what happens. After that renew and get rid off it. No one needs ground rent going up forever.
thank you for sharing your story. This video was recommended to me because i watched a few other videos on this issue, and after being properly educated I will now luckily never fall in to this disgusting trap.
I’m glad people are being warned about all this. I learnt the hard way 30-40 years ago. Unfortunately, I suspect a significant proportion of those who watch will take a chance and buy a flat anyway because it’s all they can afford. If they are going to buy a flat, it’s best to find a block where residents own the freehold and maintain the building themselves. Also, the fewer floors the better, brick is better than concrete with cladding and pitched tiled roofs are better than flat. In other words, the more the building is like a traditional house, the less problems you’re likely to have and the easier they’ll be to solve. And remember that the more modern the building, the lower will be the build quality. So an older building in reasonable or good condition is often a better bet - don’t get sucked in by flashy modern interiors.
So sorry you've been through the process with leasehold too, but well done for getting out!! Great advice for people looking to buy leasehold, thanks for the comment :)
100% agree with you! People need to be warned about the leashold system and I'm glad to see more young people getting more knowledgeable about it and sharing this with other people. The system is a horror. Never again, for me.
Don't agree about the finding one where the tenants own the block. You didn't give your reasons. If the landlord is doing the job properly then leasehold is better. Otherwise you have to hope everyone is reasonable and democratic. When viewing flats it seemed the freehold ones were in the worst state
I was very close to buying a new build 2 bed flat about 10 years in Nottingham. It was a 999 year lease, and the property was cheap (about £130k). I pulled out in the end as if I moved away for work, the income from renting it out wouldn't cover the mortgage and service charge payments, and I didn't want the hassle of going back and forth between London and Nottingham to deal with the flat. I was also worried about the noise as the walls / ceiling / floors were like cardboard. I would say new build flats are potentially okay IF you can get them super cheap, any rental income can potentially cover the mortgage + service charges and you're not stretching yourself financially...which is probably not many in any major city these days. Or you're buying a flat with a share of the freehold and you own/have a share in the management company eg. originally a large multi bedroom Georgian/Victorian building, converted into flat eg. originally a large multi bedroom house converted into a 2 x 2 bed flats. At least that way you have some control over it. Anything where you're at the mercy of a developer, I would run a mile from, even more so if its a shared ownership type flat where you pay rent and the mortgage and only own a % of the property. The latter has been abused by developers so much in London that its criminal!
Yes great points, completely agree that share of freehold is always best and due diligence is required heavily if it's a large freeholder in the UK as this is where costs will be extensive and uncapped in the future, god, shared ownership is even worse. It's terrible as it appeals to those on a lower income but you end up worse off financially, and you don't even own it!
Bad things about a flat are the service charges, they usually cost a small fortune. Then there's the neighbours coming and going/noise. Good things are security, there's two doors to get into your flat. You're garden and communal areas are cleaned and done for you. Big plus is if you're neighbours are Ok then it's an extra bonus as it's like a small community. Big thing to do is not go into anything bigger than three floors. Never, ever go ground floor, try and get an end flat so you have no neighbours at least one side to you. Cheaper energy bills, easier to clean and maintain. The other thing you can go for is a bungalow, it's like a flat, but you have you're own front door. Moral of the story is, never buy a flat, but rent one.
Cost me 5K to extend lease when term got to 80 years. Ground rent was £10 per year but disposed of after the extension. Service charges creep up yearly and currently at £450.
Well done on extending the lease, it’s not cheap but does makes your property more saleable in the future and peace of mind with the length of lease. Service charges are a nightmare, mine were around 1.5K-2k before I sold up
I am not going to delve into the technicalities of leasehold and stuff but just find living in flats a terrible idea for a host of reasons, regardless of the mode of purchase: -You have a large number of neighbours with strictly no control over them. The larger the number of neighbours, the greater the likelihood of them being noisy, involved in drug use or other sources of trouble. -No intimacy resulting from the above (particularly if the builder has decided to cut costs by doing away soundproofing and thick walls). You immediate neighbours will know everything about your leisure activities (including sex life) and you will know about theirs too. -Great concentration of people in one place = incentive for drug dealers, burglars and other criminals. There are customers to sell drugs to and properties begging to be burgled. -Various fees related to services which may or may not be delivered. -Lack of room and lack of external yard is a great recipe to be driven to madness (particularly in the event of a pandemic during which you are forced to remain inside your home!). And then what do you do the day there is a power outage? Climb 35-40 flights of stairs?
Great comment, thanks for sharing, you’re right that it’s blocks of flats in general that are just terrible for so many reasons, neighbours being a huge one of them
I'm stuck in this hell loop myself. We wanted to be home owners to start a family. We purchased a leasehold flat as that was all we could afford. 16years later we are still here but about to lose our home because we couldn't raise the shared equity amount after two redundancies and ever increased services charges. I'm terrified mostly for my little boy. Thank you for these videos stopping people making the same mistake x
So sorry to hear you're going through this now, it's an absolute nightmare situation to be in. Are you needing to extend the lease? Would you be able to sell? Hope I can help in any way x
I think location massively helps here, if the flat is in a desirable location where there are already airbnb properties then it will naturally attract them
My advice is never buy a groundfloor one . The main drain collapsed and everything from the two flats above came up out of my toilet including mucky bathwater , toilet waste and dishwater / washing machine waste . Also buy one at the end of a block where there is more chance of external bathroom and kitchen windows otherwise mould is guaranteed
Oh my gosh, that sounds awful. I lived in a basement flat rented during uni and had virtually the same experience, drains bursting and coming into the kitchen and rising damp everywhere in the bedroom. Great advice, thank you
I was in a block of 4 flats unfortunately the freeholder owned the other 3 flats. The roof needed a couple of broken tiles replacing not above my property... i was billed 1500 pounds in a 4 way split total bill 6000. The tiles were replaced in an afternoon.. the tiles that were broken were replaced.. they cost a pound each. Never buy a flat.
This is awful, no one ever tells you stuff like this will happen. Luckily we didn't have the cost of a roof, but I had to contribute towards repainting of the entire interior (5 floors) 2 years in a row because the airbnb guests kept bashing the walls with suitcases etc, so unfair this system.
@@NicoleSage They dont and it's usually the first step on the ladder for many sadly. Service charge was for 2 energy bulbs rigged to a sensor. Freeholder has since sold his flats so is now getting atleast £5k a year for them 2 bulbs.. Also when selling he held up the sale by 6 weeks by not responding to solicitors qs. It was a relief to get out of the jaws of these scammy freeholders.
Good video. I'm a BTL investor and these are all the things I check when buying leasehold properties. I think you are just missing some context around, reasons you bought a flat and reasons you sold and area you bought in (London I find is more prone to strange niche leaseagreements). Buying for BTL purposes and holding for the long term is vastly different to buy to live in. Remortgaging leasehold especially flats can be volatile. I had a situation where banks refused to lend because of EWS1 certification. It was at a time where the legislation was not finalised and banks had misaligned requirements to Leasehold management agencies. That has all been sorted now. Something to consider.
Thanks for watching, great points, although this video wasn't designed for BTL investors on flats and instead for those deciding between freehold and leasehold/first time buyers who might not be aware of the complexities that come with it.
The only Con that I think you haven't mentioned is the fact that you cannot (and must not) make any alterations to the flat. If you want to, say, move a doorway to a more convenient position, or knock down a wall to open the room up, you will have to apply to the Managing Agents, who then apply to the Freeholder, for a "Licence for Alterations". As you have found out to your cost, both charge just to answer questions - a real rip-off 🙄🙄 ‼️ The Licence is drawn up by the Freeholder's Solicitors and YOU will pay the Freeholders costs and his Solicitors costs, the Managing Agent's costs, as well as your own costs. In other words 'Everything Costs'. When I mentioned all the problems involved with buying a flat to a friend who was about to embark on this 'big mistake' he did not believe me ‼️ I have not seen him since that day (when I told him - 2004?) but often wonder if he went ahead and if so, now regrets not listening to me 😒😒
Thank you for sharing this and this is a really good point I forgot to mention, it’s absolutely obscene - same with enquiries for whether you can have pets in the property, just reiterates the point that you don’t own one brick. Let’s hope your friend didn’t find out the hard way either, many choose to listen to what they don’t want to hear!
Common Hold is good, but not very widespread. Very long Leases .(In my case over 900 years, so low cost) All owners can form an Association & Themselves manage expenditure. A combined fee is paid for the Joint Freehold.
Never, ever sign a lease agreement - 1. it's the same as renting, but with extra fees. 2. you never own the property 3. you can't sell the lease on later as nobody wants it. - it's a money trap.
Yes. I did manage to, but had to rely on it being a pretty flat in a good ,location. I had an investor really mess me around, wanting 20k off the price to buy out the permission on the lease. Mine has 110 yrs left. Managed to sell, huge relief.
Thank you for this ❤ I am looking to buy but I’m single so a flat felt like the best option. I was aware of some of the risks so I’ve been on the fence with it for quite a while but there’s so much more you mentioned that I had no idea about. Thank you again, you’ve just helped me make up my mind about not buying a flat now x
Bought a flat in Scotland and there's literally none of the issues; everything is freehold, there are severe restrictions for short-term rentals in my city, factoring company takes care of all issues and maintenance but we have a community and platform to discuss with and challenge any work they're planning and what they're charging. Tenements are also an option where there's no factoring in flats and you share costs between all owners of the address. Fact is that the English government is not doing enough for its working people and legislation has to change to eliminate this legal theft
Strictly speaking there is no such thing as “Freehold “, you simply own the property which was under feudal tenure and that kind of holding was abolished. It was not replaced by so called Freehold. And of course there are no Leasehold houses or flats.
There are situations you can acquire the freehold at a cheap price, it depends who the main freeholder is. Many flats in England are controlled by huge companies, it would have cost me £16k to buy a share in the freehold
Completely agree with all your points. The service charge was something I used to dread every year, but the biggest problem I had was the late night noise from the residents who lived above me, plus all the stomping around right above my head, and people who liked to make late night calls to their friends right outside my window whilst they were having a fag. Young people might not mind that so much, but it used to drive me crazy. Flats definitely have their advantages as you pointed out, but no way would I choose to live in a flat again. I live in a detached house now - the peace and quiet is bliss and I own it, not some landlord.
That sounds exactly what I had to put up with too! The block had 3 airbnb properties so weekends were the worst, charging through the door at 3am or being sick out the front, don't miss it one bit! Glad you're in a house now, it has unmeasurable effects on your life and wellbeing!
Yup. The drug-dealer neighbour seems to be obligatory. In the UK. the one near me refused to go away. Except when he got arrested for shooting somebody in the head.
@@SageLynxx very similar happened to me, one day he just disappeared then found out he had gone back into jail. Totally agree, they get their comeuppance eventually
Come across a flat leasehold which is contained within a block of other flats that are mostly council owned, council is the management company. Service charge is only £800 pa, 105 years on lease. I love the flat but unsure as a first time buyer if it's worth the risks...
Are you able to do any research on the council who is the management company? Maybe worth doing a search for them in the national leasehold campaign group on Facebook to see if anyone has any experiences. I think the only thing that would put me off is the lease length, unless you are considering to stay there for a while then it might not be as much of an issue to you. This is the group: facebook.com/groups/786983251448976
I would point out that you can buy the share of a freehold with a flat/house too (with the other leaseholders in the building). Don’t forget. Rare but it’s still possible.
I haven't even pressed play yet but I already know from experience that I wholeheartedly agree. Never again. Service charges, leasehold and ground rent are an absolute con.
I agree its a bit of a lottery with flats. The number one problem is the neighbours, they can be lovely but also they can be a nightmare if they are difficult, badly behaved or you end up falling out. And you can't get away from them - everytime you open your front door you can to bump into them! The number two problem is the freeholder's management company - they are generally really hard work. What most leaseholders don't understand is that they are all fighting over a limited pot of money - so what they consider a priority - isn't necessarily a priority for the freeholder. Its probably fair to say, if you want to be in control of your surroundings a house is a much better option.
I wouldn't have thought the rules are the same across the UK? You are saying real estate regime is the same in Scotland, Wales, England and NI? All the info re owing a leasehold - wouldn't that be availability online, so before you buy, you can read about conditions and issues?
Yes, this meant to say England, it is very different in Scotland as most are freehold, I'm not sure how it works in Wales and NI though. Some info is available online, but leases vary from property to property so due diligence can only be done with your own lease and the freeholder of the property.
Also, I have noticed that lots of freeholders sell the air space above the apartment block to developers who then construct additional storeys for new flats.
Oh wow!! In my country, our flats/apartments > there's 2 types - "public housing" & private condominiums. Charges are pretty upfront for purchase & selling. Leases (when you buy units brand new) are either 99yrs, 999yrs or freehold (public housing are only 99years). Issues with leases are only when you need to get loans to finance the purchase (if your lease are less than 60yrs). Thankful that additional charges are regulated and very transparent.
No way! What country are you in? I do think the English leasehold system is the worst, if everything was transparent and costs laid out like you say, it would be a much fairer system for everyone
@@NicoleSage > I live in Singapore. I just purchased a 2 bedroom flat under our BTO (Built-To-Order) which took almost 5years to be ready (the only downside) but it comes with 99 years lease. But if you can't wait, you can buy from the resale open market > leases would range from as long as to 90 years to as short as 30 years. The only thing you need to worry about buying a flat with less than 60 years lease would be your mortage or loan amount. Apart from that, any other matters are VERY transparent. It's the law here. Property agents has to make everything transparent & upfront.
Agree with most of your cons. You are always at the mercy of the leaseholder = slave for life. Worth also adding, you can't make many renovations either without the leaseholders permission (they can be difficult sometimes too).
Totally agree. Yes that’s a great one I forgot to mention, and you often have to pay for the enquiries (at least I did with my freeholder) same with pet requests.
@@NicoleSage lol yes! They would charge you for every email if they could. The government massively needs to do more to scrap things like ground rent, absurd jumps in service charges etc. Not to forget, they all take an under the table "cut or bribe" for large repairs to take out of the sinking fund. For example show a roof replacement of £100k when it could have probably cost half the price. We always assume corruption happens in third world countries, but happens here too, just a pen 🖋️ (guess can call it white collar crime). I don't own flats but all this was enough to put me off, I would buy to rent but not for myself. But appreciate they are more affordable and sometimes one just doesn't have a choice.
My contribution would be to absolutely be mindful of air circulation within the property... most likely you are viewing it while it is empty so there wont be any airborne damp, trickle vents in the windows ventilation to outside in the kitchen and bathrooms... this can be so overlooked with flats as its likely a small area with clothes being dried indoors as opposed to outside... especially during the winter months...
I lived in a penthouse flat with fantastic views for three years. It was new, easy to keep clean and warm. Great! But the neighbours -- lovely people all of them. One snored like a buffalo in a temper, the noise reverberating through the wall so I'd have to go into my lounge to sleep. Another chain-smoked out on his balcony so that in summer, I had to keep all my windows closed to stop the smoke drifting in. Another got up at five in the morning to go to work at the airport and thoughtlessly slammed Kitchen cupboard doors again, and again until he finally went out slamming his front door. Bang! Then there was the very amiable Asian family. OMG! The terrible stench of their cooking was beyond the pale, and I'm someone who does enjoy a curry! The service charge fluctuated every quarter to cover such costs as removing large items dumped in the bin-room, eg mattresses, broken furniture etc. In general I loved living there, and being a beautiful flat it sold quickly, but I have no regrets about leaving -- none at all!
I honestly think neighbours is one of the worst things ever!! Yes, you get it with housing too, but so many more problems when you're in a shared building with lots of other flats, you can't escape it. Well done for getting out!!
A flat was the only way I could get onyo the property ladder and I plan to be here for at least 3 more years. Im glad that I knew enough about service charge and ground rent before buying, so that I didn't get a bad deal, my management company is also pretty good on keeping us updated in what work is going on and what is being spent on what. I dont like the flat I am in but it was all I could afford at the time, im also really worried about the resell value, however there are more pros to the flat than cons. One of my biggest current cons is that I can't renovate the flat or even change the carpet out for wood flooring, there are quite a few limitations which are harder for me to work around. I only found out a day before I signed the papers that I also can't have pets... I don't want pets anyway so I signed but that's going to effect selling, however my upstairs neighbours do all have dogs so I'm still unsure how lenient the rules are I'm glad I got my flat, but I look forward to the fay I can be in a freehold property
So glad to hear you've had a positive experience with leasehold and hopefully resell value will be good when you come to sell. I think all leases have the pets clause, and generally if you request an enquiry (at a cost of course), they tend to accept, I think noise concern is the main issue they have with it. Thanks for the comment and sharing your experience.
I had an offer accepted on my flat about the time this video was posted! Ground rent issue has caused a huge problem, EWS1 was a huge issue and the managing agent is awful and have and are taking months to reply to anything. The key thing I've learned is to check out who the managing agent is before you purchase. My next property has decent reviews so I'm hopeful.
So sorry you've had to go through this process yourself, I know EWS1 causes major issues. Best of luck with your new property, a good managing agent makes a huge difference!
We bought flat in Croydon 2 years ago and we are really happy. But our landlord is council and that makes BIG difference! Paying £10 ground rent and servise charge £300 a year. Planing to increase lease and going to cost us £5000. I think its makes massive difference, who is your landlord.
YES, you are right, who your freeholder is will dictate how expensive and difficult it will be. Due diligence is definitely required prior to purchasing - I was unfortunate as our freehold got bought out 2 years into owning it by a big freeholder in the UK, in hindsight I just didn't know enough about this side of leasehold
Great video BTW :-) We bought our flat with 90 yrs and we paid £5000 less because we knew we need to extend it in future. But the whole leashold in this country is absolutely nonsense, that's for sure.
Great video! Why is it so pressing to get a lease extension when it gets to 90years? Just because it will be more expensive the longer you wait? Because that's still a long time.
Thank you! When it gets to 80 years something called marriage value comes into play so a lease extension starts to cost even more money from that point forward. The less years left the more expensive it becomes which is why it’s important to extend before that time, however, when the new lease reform comes into play (whenever that will be) the marriage value element will be abolished
First the security IS an issue - you cannot rely on other people in your building to be as security concious as you are. They might leave the main front door on the latch or even wide open, enabling strangers to walk in. Not good 😒 Second, you may well pay a service charge and pay into a sinking fund for major works BUT I can assure you this will never cover totally the works needed, your managing agents will see to that - they are usually self-serving and pay themselves great chunks of money and you will be asked to cough up some additional sums, which are usually large ‼️ so beware 😒😒
Yes, tbh I did have this with the drug dealers living above me, back door left open with the broom against it constantly. Again, yes sinking charge is there but undoubtedly will not cover everything, very luckily I didn’t get embroiled in this but know something happened like this just after I sold up, thank you for sharing
@@NicoleSage You're welcome ... and I'm glad you got out of this whole fiasco relatively unscathed - my comments are not just for you, but for others watching your vid and reading the comments - you learn so much from others' opinions. I worked at a solicitors during my whole career as a secretary, and picked up all this knowledge through that. An important point you make is finding a good solicitor ... when I have to hire one I ask how long they have been one, and how long in this particular field of work (including leases in particular if that's what you are after). Always remember _Experience is Everything_
Lease extensions can’t be added onto mortgages and is an upfront cost, also it doesn’t matter if the flat was £90k, lease extensions are a similar cost regardless of the leasehold price
That's interesting, I have no experience with freehold but lots have said on comments mixed things that freehold is the best but others have issues still when it comes to selling
I believe Lease holds are a regional issue. When i was looking for a 1st buy in Scotland, i found out all flats were freehold, not leasehold in Scotland. Quite different to England, for example.
Thanks. Comprehensive and detailed discussion. You know so much, you should become an estate agent. Lots of people need this kind of information, including investors from outside of UK.
Thank you so much! I absolutely agree - definitely learnt a lot on the way and hope I can educate people to think twice about the implications of leasehold
I see loads of flats going up for sale near where i live . I said to the wife the other day thay look nice but i bet people are selling up due to the hidden ground rent and maintenance bills. i said thats why i sold up when i met you . i have looked up what that property is worth now i took it on for 22.000 and sold it for 40.000 and had it for 9 years . but the biggest pain was ground rent and maintenance but i dont regret selling up i have been with my wife 23 years. oh and when i looked at the place its now worth 140.000 its plain madness but i dont regret sell up and it was never about money i now rent and we have a nice place
I've been monitoring the market recently and seeing the same, flats are on there for months not shifting too whilst landlords are selling up as they can't afford the rise in mortgage costs. You did the right thing selling up when you did, the money is all relative at the time and sounds like you're in a much better position now, there's a lot to be said for renting and not being tied into ridiculous loans/interest rates
Very informative, i knew like 90% of the info. Luckly. Yeah i agree leashold is a very big headache . Coucil tax is still paid by apartment. No? If changes to the building are made. Only the management decides or is there like a vote if the people agree? Lets say the management wants to make a automatic parking barier. Can the people vote no? Also because of extra costs?
Yes, council tax still paid individually per apartment, IF the leaseholders want something done in the property then it's usually done as a vote that is put forward to the freeholder, however, the freeholder can say the building needs something doing and each freeholder has to pay a share, you can appeal some of these things but the route can be convoluted and difficult. If they wanted an automatic parking barrier for example I think they would have to prove why it was needed to the leaseholders, but not entirely sure as I was only in a 5 block property so was unaffected by much bigger costs like servicing lifts etc.
Yes technically, however all you own is a lease agreement, if you let it run the course of the lease term without extending it would go back to the freeholder. You have to ask permission for any alterations within the property too, it might feel like you own it but you’re always controlled by the lease and freeholder unless you buy a share of the freehold
A massive problem is the low build quality and no noise isolation. UK build quality is terrible and even a semi-detached with a bad neighbour will also send you crazy.
I highly recommend renting high end furnished properties. Yes, you will pay a premium, but it's a premium lifestyle. You have no responsibilities or additional financial obligations, and you can easily move to a new location when you feel like it. Just do your research to ensure you will like the place. I had a stipulation that I can't hear the neighbors, and there cannot be someone above me. Am currently in a fantastic flat - beautifully furnished, quiet, great neighbors, perfect location, good landlord. All my friends freaked out at the cost and tried to scare me out of doing it. "You are paying that person's mortgage", etc. I would hope so! Why else would she rent it otherwise? 🙄
Family member in lovely over 50s flats.three story.the lift has been out officer three times!!!..this time for six weeks.some of the people are struggling..good information..beware.
5:17 Except AirBnB rates are crashing in the USA and likely to crash here. And AirBnB regulations are getting tougher all the time. So neighbouring AirBnB properties is no guarantee of future price stability.
I went to university in Plymouth so lived there for 5 years, definitely thinking of moving back with my partner as we loved it there! Mainly lived in the east of the city, and really like the look of houses in the Saltram Meadows and St Judes areas. That newish flat building on Notte Street is very very posh, I fan imagine the service charge there is very high.
Ah how interesting, it is a lovely place to live! I know a few people on the new build estate at Saltram Meadows which is meant to be nice, the only think with St Judes you have to be careful of is there can be a lot of student housing around there. Gosh, yes!! Anything with lifts and lots of flats = high service charges in general. good luck if you make the move!
@@NicoleSage A reason I like the area so much is because I liked close to there as a student! I used to deliver for Tescos so know the people quite well, and it seems that the student properties stop around Tothill Park which we love. Thank you, hopefully get out first home in the next few years!
I agree with you. Our family been involved with flats. You can bee screwed over with a lease and maintenance contract.. It's a way of getting more out of you whether you rent or buy. Yes Rental as well. Extra added on to your rent. Watch out. Avoid or try a deal with the land lord or seller. But that's not very hopeful. Thanks for the info again.
Thanks for your comment! Yes, rentals can be just as bad, but at least you can walk away when the contract ends, sorry your family have been involved in issues like these too, terrible system
Thanks for watching and sorry you're in this situation too, it's the only viable route for so many onto the housing ladder but full with so many complexities
This is one thing I never understand in the UK property market. In Poland we have a flat as freehold. If you deciding to buy a flat once you paid out mortgage you are the owner of this property (your flat). So the only one fee you pai is service fee but this often contain water supply + waste collection and heating. For example you pay £150 monthly and this will cover what I listed above. If you getting to financial trouble thay might cut suplly of utilities and you might own the government a property tax but you can not be kick off the property once you paid your mortgage off
If it's leasehold, I'd say that your servicing charges will be a lot less if you don't have a communal entrance/shared parking facilities, just pay attention to ground rent and the lease length when looking :)
Listen to her words....i was in the same situation pretty much word for word... The lease conditions.... The service charges, selling it is a nightmare, the hidden fees that crop up from the freeholder and property management company are sickening.... Don't ever buy a flat people.
Thanks so much for your support and comment from someone who understands, just another example from a leaseholder here of why to never buy a flat!
I lived in a flat until 2011, when I sold up. would NEVER live in a flat, or leasehold property EVER again.
So glad you managed to get out too, the WORST@@bobjames6622
If you buy a leasehold, you're buying nothing. You're basically just agreeing to rent the space from the land owner at a hugely inflated price for a long period of time. Apparently the UK is the only country that operates this archaic system. You also have no real control of what the management fee gets spent on, or more importantly doesn't get spent on.
@@NicoleSage I found out that such things have a serious, and detrimental impact upon mental health. It wasn't just when those people were in the flat below me, it was also when they weren't there and I was DREADING that first slammed door which would announce their arrival from work. Which meant another evening of hell for me.
At one point I was so desperate that I put on the Iowa album by Slipknot (great band, BTW) and I had a SERIOUSLY good music system and put it on full blast. Within seconds you could hear scurrying feet from downstairs as they left their flat. Didn't hear them again until the next day! I always actually listened to my music wiht headphones on (and still do) as I don't want to be the kind of prat that drives my neighbours nuts, but they really deserved that. I didn't do it again because it wasn't fair to the other neighbours, but I felt I HAD to do something otherwise I would have gone down there that evening and done something I would REALLY have regretted.
PS: just realised that I was responding to you about another post on another video you made. The above relates to my 3 years of hell over noisy neighbours.
Before you make an offer on a flat do two things. 1. Ask the agents to write to you with the balance of the sinking fund. If it is low or nil then get advice from an independent professional as the what the risks could be. 2. Ask the agents to provide you with copies of the minutes for the last 12 months' management company meetings. You'll then see any important matters that are discussed. Could be anything such as the need for a new roof, noisy owners, subletting problems, parking problems. Some might be trivial, and others may put you right off buying.
Great suggestions, thank you
Brilliant suggestions.
Was about to look into flats and am so happy I saw your comment will do
Find out the balance of the sinking fund and if it is low or nil, RUN! Seriously, walk away from the purchase. When the cyclical works (done every five or seven years) become due, or the property needs roof repairs or new windows for example, you'll be landed with a bill for £20k, £50k, £100k or even more, split between the leaseholders. Even if the freeholder or managing agent is at fault, by not having collected enough money, you can fight it all you like but you will ultimately still have to pay the bill. This happens all the time and no matter how unfair it is, the law is on their side.
@@raidermanuk Very good advice and I say this as a leaseholder and residential director. You get a good indication on matters money gets 'wasted' on because of resident behaviours or bad property manager/management co decisions, dodgy maintenance and also if excess was ever required on top of service charges.
I vowed never ever to buy another property in the UK, regardless of whether it was freehold or leasehold. That was in 2010 and I kept that vow. I rented a bedsit in London, just about breaking even each month, for 8 years.
That way, I could get up and leave any time I wanted to.
In 2014, I started research on emigrating, initially looking at South and Central America. After 2016, that changed to a Eastern European countries. I moved to Bulgaria in 2020, escaping a country (the UK) destined for totalitarianism. I've never looked back - bought five properties here for cash, one I and my family live in, the others are rented. No mortgages, no loans, no leaseholds. Services charges of just £8 per month on the largest property. Council tax equivalent of £10 per month. Utility bills one tenth that of the UK - yes 90% less! My average electricity bill for our 3 bedrooms maisonette, which includes heating, cooling, hot water and everything else is £75 per month and we don't try to save much electricity - 2 adults, 2 kids, 4 cats. Water is an average of £29 per month.
Personally, I think living in the UK is utterly nuts now and I will never be returning. My friends all agree, I did the right thing.
I have an infinitely better quality of life and a significantly safe one too.
Thank you so much for sharing this, in recent months the drive to live outside of the UK has grown even more apparent for so many reasons for me so this was very interesting to read and food for thought.
@@NicoleSage you're absolutely right, there are so many reasons. I posted something on FB a couple of weeks ago, with 32 reasons - I could have added more. It's somewhat interesting that the Global Peace Index, now lists nine Eastern European countries in the top 30. The UK is now lagging behind in 37th place. With the problems that the UK is encountering, getting worse still, I'm predicting a further fall for 2024. Bulgaria is 30th (Romania 31st). Slovenia came 8th and Czechia 12th.
Dober den moya brat. Kak si? v Bansko cim.
A couldn't agree with you more, wishing you all the best and Good luck. I moved to Eastern county myself in 2008 I am sooo happy and feel very safe too which is top priority for me, BUT, a big BUT..my kids and grandkids want me to come back to UK 😢 I really don't know what to do, half of me wants to for my kids sake, but the other half ? No I do not want to come to Broken UK !!
Do you have citizenship in Bulgaria? How easy was it to buy?
🎯 Key Takeaways for quick navigation:
00:00 🏢 Leasehold properties in the UK explained, highlighting that owners hold a lease agreement, not the full property.
01:37 🏠 Proponents of owning a UK flat include affordability for single buyers and low maintenance managed by an agency.
06:08 ⏱️ The longer the lease, the better. Lease extensions can be costly and complicated.
07:59 💸 Costs of owning a flat include service charges and ground rent. Ground rent can complicate buying and selling.
11:54 🔊 Consider the physical and social aspects such as noise, neighbours, and challenges with Airbnb properties in the building.
14:42 📑 The selling process of flats can be longer than houses due to needing detailed information from the lease amd potential deed variations.
15:25 📖 Final thoughts recommend weighing pros and cons, considering legal factors, and being aware of financial strain from increasing service charges.
Made with HARPA AI
Appreciate it, thanks!
Since I’ve owned my leasehold flat 2006 the sinking fund has disappeared year on year until 2019 the managing agents requested the first £1000 contribution from all of the 28 flats in my block and have more than doubled the service charges. Trust me they’re on a nice little earner even taking a cut from the car parking company who act like the Talliban in policing the grounds with our cars at 4-30am one Sunday morning issuing a £100 ticket. My flat is on the market for sale- if it doesn’t sell I’ll put it into auction. Life lesson and a piece of sound advice,, don’t , don’t buy a leasehold unless you want non stop rising bills . Rent it.
Me and my wife bought a flat about 2 years ago and although our original plan was to buy a house, due to the location of that flat, we decided to go for it. Now I was well informed about the cons of buying a flat, but one thing I didn’t take into account was how difficult it will be dealing with the management company (they were put in place by the freeholder). You quickly realise how helpless you are in terms of what they charge. Our building is less than 10 flats yet we pay over £2500 each flat a year, we have no lift or electric gate, we literally pay for once a month cleaning the hall way and emergency lighting near the entrance. We are now going thru RTM process to get rid of the Management company and we have to fork out another £3000 for solicitor fees. My advice to anyone, stay away from flats. It’s not worth the stress!
So sorry you're going through this now, the managing company is the worst, as you say you have no control over what they charge. Keeping my fingers crossed for you with the RTM process, it's all a money game with them!
@@NicoleSage it is indeed! Thanks you!
Leashold is a national disgrace. The only acceptable leasehold reform is to END LEASEHOLD completely.
Share of freehold has different but equal problems - now instead of a shitty management company you have shitty owners who defer maintenance...
I agree. Continental European countries do not have such concept for flats and apartments. I suspect landlords with 900 headleases in the UK would resist.
How would you manage no leasehold in a block of 40 flats? Good luck getting anyone to pay up or organise maintenance. If you have a small block of flats, it can be easy to manage (if everyone is reasonable, middle class and has money). Flats are a terrible idea in any country. Only countries that make it work - the Government owns them i.e. Singapore. But then you never have equity. It's a trade off.
@@chrisjie2127 Agree - fuck flats I would rather rent for longer for house deposit than flat and put myself at risk of assholes neighbours which you cannot predict until its too late
@chrisjie2127 Continental Europe, Japan and Korea all have no leasehold flats and large apartments developments. Runs much better and less disputes than leaseholds. All the issues you raise can be addressed by modernisation of UK law.
UK leasehold is such a scam! You don't actually own anything, pay rent to 3 landlords instead of one, and responsible for all costs, repairs and even insurance which makes profit for the freeholder. Scam x 3. Plus service charges that go out of control and cost an absolute rip-off.
You've summed it up perfectly
Yes. I heard that in some places in London, flat owners were paying over 15 thousand a year in standing charges for a flat, that's while trying to pay the mortgage too! That's not even taking into account the utilities and other bills. I don't know how people can afford it.
Being robbed thru service charges right now...
That was a very informative video. "Leaseholders are not favoured at all by the government", I'm pretty sure your statement is true. Why would MPs change anything for leaseholders, its how many of them make their additional income on top of their £86,584 MPs salary. Owning the freehold of buildings is extremely lucrative in our 'unfettered' capitalist 'grab what you can' economy and MPs have their noses in that trough.
Thank you! Agree with everything you’ve said, leaseholders absolutely aren’t favoured, it’s a total disgrace and it’s why I just don’t think they’ll do anything about it, I always wondered why people would buy freeholds of property until the penny dropped, the fees are uncapped and they aren’t regulated, awful system
Spot on.
On top of everything, these modern built apartments are made of rubbish (no air circulation, low bills in winter, but mould on the back of the furniture although I keep windows open, low ceilings). I can see how roof already needs repair after 5 -10 years. I am renting, but I would never buy this apartment. They might look nice on the outside, but you can hardly breathe inside without windows being open.
Ugh yes. New builds are notorious for this, they’re thin walls, not built or ventilated properly and a proper fix is hugely expensive. Very glad you are only renting though
This needs to reach all people in the UK even contemplating buying a flat! Excellent video!
Thanks so much for watching!
To be clear, this excellent and informative video is about flat ownership in *England*, not in all of the UK. The presenter more or less conflates owning a flat with having a leasehold, and owning a house with a freehold (although she does mention that houses can be subject to leasehold as well). This is indeed the most common state of affairs in England (and, I think, also in Wales), but in Scotland, leasehold is extremely rare. Rather, when you own a flat in Scotland, you own your own flat, plus a share of the communal spaces. (A similar model does also exist now in England, called 'commonhold'. This was only introduced relatively recently.) Usually, there is an owners' association that contracts a 'factor' to carry out maintenance and collect the corresponding fees.
This is, in fact, how flat ownership works in many countries! I should add that in Scotland, how well this system works can be a bit hit or miss. Some buildings are very well organised, but if they aren't, it can be the cause of major headaches.
£1,500- to £2,000 service charge a year is insane, by the way. No wonder flat ownership is so unpopular in England. I always thought it was mostly a cultural thing that made British people love their little semi-detached in the suburbs, but you've shone a light on all the ways that leaseholders are screwed over, which is surely a big part of it as well
Thanks so much for your comment, you're absolutely right that it's actually 'England' affected by this, although I am not too aware of the Scottish system myself. Yes, leasehold is a terrible system and hopefully this will educate anyone who still wants to embark on a leasehold property to save stress and a lot of money down the line.
Thanks for that! As a Scot, l was getting very confused about all this information that l had never heard of! Sounds a real nightmare and very costly in England😮
I heard that many of those beautiful tenement blocks in Glasgow have fallen into severe structural disrepair due to problems "enforcing" repairs where neighbours don't agree on these matters or don't care. I've bought and sold 4 flats in London in my lifetime. The best managed were actually leasehold with good management structures in place. The last flat I owned was "Share of Freehold" (I had bought a lease with a share in the freehold). The share of the freehold which each resident had was what caused the problem...people veto-ing repair work that they considered were not necessary "I'm not paying for that...I won't be still living here in 2 years". Sometimes it's better to have a fair and well-planned constitution imposed and enforced, preferably on a 999 year lease.
Ah yes, i thought as much. Freehold flats is just one of many reasons I would consider moving to Scotland (from England).
I recall owning a flat 30 years ago,on the ground floor in a block 3 stories high.The first thing I noticed was the noise of other flat owners coming and going,as the main entrance door was near my front door.This gets a bit annoying when people have friends round and they leave at night, and chat and laugh at the main doors for 10 minutes usually at 11pm.
Then the owner of the flat upstairs left the bath taps on,which eventually flooded my bathroom immediately underneath. No one knew how to contact him, and the situation got desperate.I contacted the freeholders but they refused to disclose his 'phone number,under some Data Protection Act.After a lot of begging they 'phoned him direct and he returned several hours later and turned off his taps.I can't recall how I sorted it out but another problem with flats is the lack of ventilation,especially in bathrooms,kitchens and toilets.
The list of petty but annoying incidents almost every month was enough to put me off buying a flat again.
Oh god, it sounds exactly like what I put up with in my flat. I was also on the ground floor and lived with 3 airbnb properties, no escaping it, but luckily didn't have to deal with any flooding, what a nightmare. Very glad it put you off buying a flat again!
Hello Nicole. Listening to you was certainly an education for me even though I've been through the rigmarole myself. IMO, by far THE biggest problem in flat ownership is your bloody neighbours!!! I eventually sold my 2 bed, X council flat in a very leafy suburb of N LDN back in Jan 2019. To say selling it was a headache would be the understatement of the century. I listed with 3 different estate agents, one after the other, as the first two were complete numpties but even with the third agent the sale fell through 5 times. On top of this, as i mentioned, i was also dealing with my ground floor neighbours. For the last 10 years of living above them they managed to destroy my life, so much so i decided to implicate a reduction in sale of £90,000 in order to secure a quick buyer. Yeah....i lost £90,000 just to get away from those animals below me. Anyhoo...this taught me a valuable lesson, NEVER BUY/LEASE A FLAT, more so in stinkin, frickin London! Needless to say, i now own...OWN a wee cottage in the west country. My sanity is slowly returning. All the best honey. P.S. Plymouth's lovely 💕
Thank you so much for your comment! Oh my gosh, I am so sorry you have been through this, I was very lucky I only had to deal with mine for 6 months but it truly felt miserable, I never wanted to come home. Despite your loss, I am so pleased you have managed to sell and get out of leasehold, you never think you'll have neighbours from hell until you do. Your cottage sounds gorgeous and the West Country too!! You certainly appreciate it all the more when you come from an awful experience like that!
Cheers Hun.... subscribed💕
@@burntcrumpets5616 thanks so much! 💖
I know EXACTLY what you mean. I lived in a flat for 17 years and for the last three years it was HELL. The bastards in the flat below didn't just slam doors, they SMASHED them shut. And then the music which literally had the ENTIRE block shaking over it's 4 stories....and I was right above it! I complained to the flat owner (as it was rented to them) and he didn't give a crap. I complained to the council, and they didn't give a crap. At one point it got so bad I was thinking daily about doing really bad things to the flat below, but thankfully I managed to refrain, otherwise I would have been in jail.
Creatures like that should be up against a wall and machine gunned. Even now, 11 years later and now living in a house, if I hear a sudden loud bang then, just for an instant, I'm mentally right back in that flat. I curse them for what they did and can only hope that something terrible became of them.
@@bobjames6622 oh mate. I do hope you've now found some much deserved peace. Yes.....the door slamming! My flat was a first floor maisonette with floor board partitioning. You can imagine can't you. I was a Turkish family of 8 (mother, father, three young daughters a teenaged cousin & the father's parents) in a two bed flat! Their extended family & friends would congregate every single weekend & school holidays increasing the number to roughly 20+. The flat was sublet through a different council so no amount of complaining resulted in any action. Their rear garden which my flat looked over was a dump to say the least & during the summer months when our windows were open the smell from below rising up was indescribable. They vandalised my car, smashed up my bins & constantly accused me as a racist. The whole time I was caring for my elderly mother who was battling her fourth bout of breast cancer & a brain tumor. You can guess that my fingers were firmly X'd when the flat was being viewed for sale. I never thought I'd ever get out, so much so that my mother & I agreed on a suicide pact if things carried on the way they were. When the flat finally sold we were homeless for a while living out of Premier Inns until I made the decision to move to the west country & look for a cottage to buy out right with what was made on the sale. We weren't entitled to a mortgage so it was find something within our budget or rent. This time the heavens were on our side for a change. Yes, the cottage is teeny weeny but it's mine. It SO quiet it was a shock to the system & I'm surrounded by lush green pastures, beautiful blue stone homes, horses being ridden up & down out front & neighbours I thought didn't exist in real life. One of which is the late Una Stubbs' brother. He's a potter. 4½ years now & what can I say apart from I've become someone new. I'm glad you've been able to move on too. I hope for the better! Big hugs Bob.
Beware of service charge increases, they can literally double in a year. Always look at the previous service charge costs (solictor should provide during purchase) and see how much they go up each year. You'll need to factor that increase every year at a minimum as part of your annual budget.
Great point to make, thank you for commenting
My lease holder tried to get me to sign a new doubling lease
That doubled every 5 years
And I’ve read many builders are adding these doubling leases on new build flats
Yes my lease was only 250 a year
But with the way doubling compounds
250
5 years 500
10 years 1000
15 years 2000
20 years 4000
25 years 8000
30 years 16000
35 years 32000
Friggin flat only worth 80k
These properties will become worthless
@@boyasaka you're really mixing stuff up...
I'm currently saving a deposit, and doing everything I can to avoid leasehold (ie. flats), even if that means having to save for longer. Maintenance charges. Lease issues / extension costs. Cladding issues. No thanks. I'd rather pay "dead money" renting whilst I try and get a freehold property.
Leasehold is an outmoded, feudal system that almost no other country uses. Scrap it.
Best thing you will ever do, completely agree - leasehold is the worst system. Best of luck with your deposit and purchase!
100% @@SageLynxx
I heard in Scotland the flats are freehold. If this is true, why is it different from England?
You are still losing money then what’s the point? As long as a flat isn’t in a massive housing block with lifts or has a horrendous service charge/ground rent that goes up each year (which you can check prior) why not buy a leasehold? The system sucks but you can still play your cards right and not loose money… unless you are investing elsewhere in the meantime I guess
"Armed with the knowledge". "If you are in doubt, walk away from it." You are very generous to share what you have learnt at your own expenses. Thank you very much.
Personally, I feel sick of it all. However, we have to keep on going. People like you are actually helping to clear the air for now.
Thank you for watching, it's a disgraceful system which affects millions of people and enough isn't spoken about it!! Lets hope reform comes along soon to provide some relief
My service charge is DISGUSTING. Very expensive and constantly increasing year on year. The ground rent thankfully is peanuts. But the service charge is like I said, pretty disgusting.
Then why did you buy it?
@@athaliahgrunburg8574is that a serious question? A big majority of single people can't afford freehold.
@@gemma8611the service charge is disclosed when you buy a leasehold, as are plans to increase it and the general trend over the last years. you can easily buy a leasehold with manageable service charges unless it is something you overlooked while buying
Regarding the neighbours: unless you have detached house, you need to look very closely at the neighbouring properties. If one or both are rentals (to students would be the worst) or one house is derelict, then you are in for trouble.
It's definitely a problem in flats AND houses, peeking in the garden and outside area is always a precursor, and driving by at different times in the day
Living in the. United States, I was fascinated to hear all the complexities of owning a flat in the UK. The normal process here is to rent an apartment for a monthly fee for the duration of one’s lease. Is that also an arrangement there? If so, what is the advantage of buying a flat? Also, I’d read that in the UK, mortgage interest rates on houses re-set every one, two, or five years (unlike here where the typical mortgage is for 30 years at a fixed interest). With the current spike in interest rates in the UK, homeowners must be panicking as they approach their re-set. Anyway, good vid, thanks.
I bet it was! Yes, we do have the process here but only if they are renting the flat rather than getting a mortgage for it. In my eyes there really is no advantage!! Really you only win if you have a share of the freehold, so you aren't controlled by someone above you.
Yep, that's correct! It fascinates me that the US has such long mortgage terms. When we get a mortgage we can choose what amount of years we like, usually the very short ones 1 years, 2 years have higher rates than the longer terms. Because of this, landlords whose mortgage terms are coming to an end are having to sell up because the rise in mortgage is something they simply can't pass onto the renter. Thanks so much for your comment!
I got a lost listening to her I'm from the US as well it just seems so confusing you buy a flat but you're not really buying anything you just buying a lease .
in UK you never 'own' a flat and you only take is for 'lease'. I am originally from India and came here 14 years ago. I was utterly surprised seeing the size of the rooms which are nothing but hobbit holes. British love saying 'good sized' rooms which is left to your imagination. There is another crazy thing in London. Have you heard of 'shared ownership'? That means you own a % of the flat and pay ground rent on the rest. Basically worst of both worlds!!
@@sriramcan You can own a flat if you have a share of the Freehold. I agree shared ownership is an absolute con.
Leasehold should be avoided at all costs. Nothing but a mortgaged tenancy with uncapped charges on top ..better off renting. Flats are also the most exposed part of the market and are already tanking in value.
100% agree with you, renting is so much more favourable than leasehold, you know where you stand to a certain degree and you can walk away when you want.
@@NicoleSage @Standard_Jay,
Totally agree with both of regarding renting a flat and not leasing one.
Great video. Im glad I sold my flat several years back, felt like the flat was never actually my home. The mantainance was going up each year, around 7-800 GBP per year when I sold (excluding yearly ground rent - which is another complete con), the residents had no say in the expenditure it was pretty much dictated by the property mantaininance company, one example is the residents had to pay for fences to be erected on a peice of land opposite the block to protect a strip of green belt from deer.... god knows why that was our responsibility, and this was 15 years after the flats had been built! There were pros and cons, in my situation id say more cons. The flip side of living in a block which is in a desirable area is that if youre on a ground floor flat and above you - you have airbnb flats you have to listen to the sound of people dragging cases up the stairs every couple of days (unless you have a lift). Knowing what I know now after owning a flat if it came to it I think id rather live in a van - id have much more control over my destiny and expenditure. There are and will be a lot of factors which are out of your control.
Thank you for watching and sharing your experience, that sounds awful - completely relate to the feeling that it never feels like it's your home, so glad you managed to get out of leasehold too and I'm with you on living in a van, you have no control over leasehold, and rising fees, the freeholder always has you where it wants you
My daughter is buying a flat for £50000 in Morocco. It is a 81 sqm beautiful apartment in northern Morocco . A nice neighbourhood and only 20 mins walk to the beach. Young people must look at other countries and opportunities. As a digital nomad she loves Marrakesh and Essaouira. Airbnb is a great way for her to pay £30 a night in these towns when she visits the south.
That sounds amazing! I totally agree, there is a different life outside of the UK and if you can go and get it go for it!
I did the same. Unfortunately, this option is not available for everyone. You normally have to be a third culture national.
@@D-A-H8585 Any European or a American can buy a house or property in a town or city in Morocco. Moroccan banks ask a foreigner for 30% deposit. You can get a loan from Morocco.
Nice, which city in the North? Tangier? Most people who move to Morocco from the West end up going South.
Of all the places she could have purchased or lived...I wonder what she likes....hmmmm. She is not a digital nomad if she is buying you igit! If she asked you for money to buy it, its because MOh (secret boyfriend )has told her. "am a digital nomad but am buying a flat in a country with no rights for woman" you really are a melt! Let me know how it went!
Great video, very informative about the broken leasehold system in the UK 👏
Thank you!
In England*
We bought a flat back in 2016. I insisted on the property having a share of freehold and not a horrible leasehold new build so we found a nice top floor Victorian conversion in South East London. Being on the top floor gave us the opportunity to extend into the loft which gave us an extra 2 bedrooms and 1 bathroom. My advice is to stay well clear of new builds and lease holds and only get a flat with a share of freehold. Why spend all that money and not own a share of the freehold- makes zero sense?
Great advice, totally agree that share of freehold is best if you buy a flat, so glad you've had a good experience
I am a bit confused on this one. I have seen flats in my area (South West) which are house conversions. They state that the owners have a share of the freehold and that there is no ground rent but then the lease is stated as 250 years since year x. I just don't get how there can still be a lease when you own a share of the freehold. Any thoughts?
@@georgesotiriou7051 yes its all very confusing. The share of the freehold in our flat also has a leasehold but our leasehold is 999 years for all parties so for all intents and purposes its one that lasts forever. I guess we were lucky in that regard
My flat is a Shared Freehold I own 1:12 th of the Freehold and we decide the service charge etc and what works required.
If you can do it, it’s the best solution, we were offered a share at one point but it would have been 16k each at the time
Great advice. I'm a single, white mail living in a freehold semi detached house but was attached to a neighbour from hell and ended up suffering a mental breakdown. Not because of the neighbour but they certainly didn't help me feel great.
You're neighbours and area play a significant part in any property I would say they are number 1 but affordability will take priority for 99.9% of us who live alone,never mind have a family and kids etc
That sounds awful, neighbours are by far the worst thing whether it's a leasehold or freehold as you can't escape it. Hope your situation has got better since then, it's really difficult being a single buyer as options are more limited for sure
Neighbours from hell can be anywhere... any property...
@@keys6 yes... but the worst ones are those you share a wall or access too.. trust me. Most if all people can ignore the headcase 3 blocks down but you cant escape it if your nextdoor
I grew up in Plymouth so when you mentioned Plymouth (this is the first video I’ve seen of your’s) it brought me back. After moved out of my childhood home I rented on Ebrington Street for a while, while I was at uni and a few years after. I’ve been living in Cornwall over the pandemic and earlier this year I bought a ground floor flat in Redruth. Not where I intend on being but what I could afford. It’s a lovely little flat though so I don’t mind. Only 2 stories and all the downstairs flat have their own doors (no external/ internal door). Which I love. A communal garden. The payments aren’t that bad, (especially for what we get) hopefully they don’t increase or increase by much next year. I’m single and disabled so right now it suits me great. 980 years left on the lease so that’s great! Despite all this I definitely agree with everything you said and would much prefer a house next time if I can afford it. Personally my main downside is despite the fact it’s only 20 years old, god I can hear everything my upstairs neighbour does.
Oh wow, what a small world! Congrats on getting your flat, and it sounds like you’ve got a really great situation with the super long lease and payments, it definitely makes a huge difference who the freeholder is and of course the lease length which won’t cause you any problems when you sell in the future. Oh god the noise and floorboard sounds are the worst, I was in a Georgian flat and whilst the walls were thick blocks the overhead noise was something else! Thanks so much for watching :)
Well done on this video. Very clear and informative. If you buy a flat it is a huge advantage if it is ahare of freehold. It is sad to see so many very young people who want to leave because of housing costs but are finding it more difficult as Great Britain has left the single market. When I speak to people in continental Europe they are shocked that a leasehold system exists in the UK. Sadly property in continental Europe is in general so much cheaper than the UK particularly outside capital cities.
Thanks for watching, yes totally agree, share of freehold is always better. Totally agree, the system is so medieval over here, other countries can't get their head around it, worst system ever
Slightly off topic (as its not about flats) but one thing I would be VERY careful about is buying an old Victorian terrace that doesn't have proper wall/roof insulation. I used to own a 2 bed freehold terraced house that was HORRENDOUS during the winter months. I had to keep the central heating on 24 hours a day (£££££s) over the winter months because the insulation was so bad (it was freezing) and even then it was only about 14-15C indoors.
This is very true, and a lot of houses like this are sold during the summer so the damp issues aren't visible, also paint covers a lot! Victorian houses are notorious for this, we have a Victorian terrace house now and it had awful damp last winter, usually to do with poor ventilation
My reverse freehold flat was great. Lived in it for 12 years fairly problem free give or take a few things. I was lucky I think. It doubled in price in the 12 years and then I bought a big house. I would never buy a leasehold flat though with management company, ground rent, the nightmare lease extensions etc. My lease was 980 years or so. I’m glad you are warning people of the awful pitfalls of leasehold flats that aren’t reverse freehold. I live in Plymouth too btw😊
How interesting, I've never come across reverse freehold before, I'm glad you managed to get out when you did and you had a very very good lease which absolutely helps. Thanks so much, and wow, hello from Plymouth! :)
@@NicoleSageit’s basically just another name for shared freehold. So myself and the person who lived above me would share the costs of the building maintenance. It’s all well and good until you get someone who doesn’t want to cooperate or pay. Thankfully I was lucky and I never had any issues with that, but it is still a risk nevertheless and I was always nervous about who would live upstairs as it sold 3 times in the 12 years I was there. So so glad I live in a house now. My selling process was very long and arduous and solicitors in Mutley (Curtis Whiteford Crocker) were terrible. Your videos are fantastic and will help so many people. I went through absolute hell during selling like you did, but for different issues than yours. Thanks so much for helping people and warning them in advance 🙏🏽
How can there be a lease when you own a share of the freehold? I'm really confused by that.
This is excellent. Well done and easy to understand. Thank you !
Thank you so much, much appreciated!
I currently purchased a leasehold maisonette privately and has an absent landlord who went bankrupt and the property comes with a peppercorn ground rent and a title absolute. A win win in my eyes. I was faced with a few challenges but I worked as an estate agent for a number of years which helped me navigate the sale.
Sounds like a diamond in the rough, good if you can find them!
Lots of mortgage companies will not give a mortgage, if the service charge per annum, exceeds 2% of the asking price. A friend of mine encountered this difficulty trying to sell his flat. He is still trying to sell now.
That's awful, I didn't know it was becoming an issue with onerous service changes too, hope your friend is able to get out somehow
@@NicoleSage unfortunately it is a problem, meaning people can be trapped and unable to sell. Or have to sell ridiculously low and cash buyers only as it becomes impossible to get a mortgage on the property
1% on my property. My lease also contained a doubling ground clause which my solicitors failed to mention when I purchased the property and ended up costing mr thousands to do a deed of variation. Leasehold should be outlawed or renamed scam.
Bite the bullet and extend your lease and get rid off the ground rent. This will in most cases get the free holder of your back. Use the law to free your ground rent. Only buy lease hold flat's or houses if you have no alternative. Never buy any lease hold with 10 year doubling ground rent. Great insights and excellent advice 👌 👏
Yes, totally agree, if you can get the lease extended, will be worth it in the long run and make the property saleable, thanks so much for your comment!
But if the lease is 200 years + am not sure what that would do.
@nauxsi if you have doubling ground rent's and even if your lease is 999 years renew it to get rid of the ground rent. It will save money and you will get peace of mind.
@@zawarshah508 mine isn't doubling but it does go up every 10 years. Started at 150. Then 200. Now 300 for the next decade.
@nauxsi so renew the lease and get rid off it. Just wait till the next election and see what happens. After that renew and get rid off it.
No one needs ground rent going up forever.
thank you for sharing your story. This video was recommended to me because i watched a few other videos on this issue, and after being properly educated I will now luckily never fall in to this disgusting trap.
Thanks for watching, and so glad it could help, definitely avoid leasehold at all costs!
I’m glad people are being warned about all this. I learnt the hard way 30-40 years ago. Unfortunately, I suspect a significant proportion of those who watch will take a chance and buy a flat anyway because it’s all they can afford.
If they are going to buy a flat, it’s best to find a block where residents own the freehold and maintain the building themselves. Also, the fewer floors the better, brick is better than concrete with cladding and pitched tiled roofs are better than flat. In other words, the more the building is like a traditional house, the less problems you’re likely to have and the easier they’ll be to solve. And remember that the more modern the building, the lower will be the build quality. So an older building in reasonable or good condition is often a better bet - don’t get sucked in by flashy modern interiors.
So sorry you've been through the process with leasehold too, but well done for getting out!!
Great advice for people looking to buy leasehold, thanks for the comment :)
100% agree with you! People need to be warned about the leashold system and I'm glad to see more young people getting more knowledgeable about it and sharing this with other people. The system is a horror. Never again, for me.
Don't agree about the finding one where the tenants own the block. You didn't give your reasons. If the landlord is doing the job properly then leasehold is better. Otherwise you have to hope everyone is reasonable and democratic. When viewing flats it seemed the freehold ones were in the worst state
'' take a chance and buy a flat anyway''
They are not ''buying'' it!
@@yeldarleumas1847 how come?
Noise is the biggrst killer. Dont stay underneath people. Get top floor if you are good with stairs.
Yes, great advice
I was very close to buying a new build 2 bed flat about 10 years in Nottingham. It was a 999 year lease, and the property was cheap (about £130k). I pulled out in the end as if I moved away for work, the income from renting it out wouldn't cover the mortgage and service charge payments, and I didn't want the hassle of going back and forth between London and Nottingham to deal with the flat. I was also worried about the noise as the walls / ceiling / floors were like cardboard. I would say new build flats are potentially okay IF you can get them super cheap, any rental income can potentially cover the mortgage + service charges and you're not stretching yourself financially...which is probably not many in any major city these days. Or you're buying a flat with a share of the freehold and you own/have a share in the management company eg. originally a large multi bedroom Georgian/Victorian building, converted into flat eg. originally a large multi bedroom house converted into a 2 x 2 bed flats. At least that way you have some control over it. Anything where you're at the mercy of a developer, I would run a mile from, even more so if its a shared ownership type flat where you pay rent and the mortgage and only own a % of the property. The latter has been abused by developers so much in London that its criminal!
Yes great points, completely agree that share of freehold is always best and due diligence is required heavily if it's a large freeholder in the UK as this is where costs will be extensive and uncapped in the future, god, shared ownership is even worse. It's terrible as it appeals to those on a lower income but you end up worse off financially, and you don't even own it!
Bad things about a flat are the service charges, they usually cost a small fortune. Then there's the neighbours coming and going/noise. Good things are security, there's two doors to get into your flat. You're garden and communal areas are cleaned and done for you. Big plus is if you're neighbours are Ok then it's an extra bonus as it's like a small community. Big thing to do is not go into anything bigger than three floors. Never, ever go ground floor, try and get an end flat so you have no neighbours at least one side to you. Cheaper energy bills, easier to clean and maintain. The other thing you can go for is a bungalow, it's like a flat, but you have you're own front door. Moral of the story is, never buy a flat, but rent one.
Great advice, thanks for sharing!
Cost me 5K to extend lease when term got to 80 years. Ground rent was £10 per year but disposed of after the extension. Service charges creep up yearly and currently at £450.
Well done on extending the lease, it’s not cheap but does makes your property more saleable in the future and peace of mind with the length of lease. Service charges are a nightmare, mine were around 1.5K-2k before I sold up
Which website to check for My Lease extension Quota
I am not going to delve into the technicalities of leasehold and stuff but just find living in flats a terrible idea for a host of reasons, regardless of the mode of purchase:
-You have a large number of neighbours with strictly no control over them. The larger the number of neighbours, the greater the likelihood of them being noisy, involved in drug use or other sources of trouble.
-No intimacy resulting from the above (particularly if the builder has decided to cut costs by doing away soundproofing and thick walls). You immediate neighbours will know everything about your leisure activities (including sex life) and you will know about theirs too.
-Great concentration of people in one place = incentive for drug dealers, burglars and other criminals. There are customers to sell drugs to and properties begging to be burgled.
-Various fees related to services which may or may not be delivered.
-Lack of room and lack of external yard is a great recipe to be driven to madness (particularly in the event of a pandemic during which you are forced to remain inside your home!).
And then what do you do the day there is a power outage? Climb 35-40 flights of stairs?
Great comment, thanks for sharing, you’re right that it’s blocks of flats in general that are just terrible for so many reasons, neighbours being a huge one of them
I'm stuck in this hell loop myself. We wanted to be home owners to start a family. We purchased a leasehold flat as that was all we could afford. 16years later we are still here but about to lose our home because we couldn't raise the shared equity amount after two redundancies and ever increased services charges. I'm terrified mostly for my little boy. Thank you for these videos stopping people making the same mistake x
So sorry to hear you're going through this now, it's an absolute nightmare situation to be in. Are you needing to extend the lease? Would you be able to sell? Hope I can help in any way x
Tenement flats in Edinburgh are freehold. I guess that applies to Scotland generally …. And that is in UK
The worst thing about living in a flat is noisey inconsiderate neighbours!!
Yes. It’s the worst and no control over it!
How do you find Airbnb investors?
I think location massively helps here, if the flat is in a desirable location where there are already airbnb properties then it will naturally attract them
My advice is never buy a groundfloor one . The main drain collapsed and everything from the two flats above came up out of my toilet including mucky bathwater , toilet waste and dishwater / washing machine waste . Also buy one at the end of a block where there is more chance of external bathroom and kitchen windows otherwise mould is guaranteed
Oh my gosh, that sounds awful. I lived in a basement flat rented during uni and had virtually the same experience, drains bursting and coming into the kitchen and rising damp everywhere in the bedroom. Great advice, thank you
I was in a block of 4 flats unfortunately the freeholder owned the other 3 flats.
The roof needed a couple of broken tiles replacing not above my property... i was billed 1500 pounds in a 4 way split total bill 6000.
The tiles were replaced in an afternoon.. the tiles that were broken were replaced.. they cost a pound each.
Never buy a flat.
This is awful, no one ever tells you stuff like this will happen. Luckily we didn't have the cost of a roof, but I had to contribute towards repainting of the entire interior (5 floors) 2 years in a row because the airbnb guests kept bashing the walls with suitcases etc, so unfair this system.
Dude, but that's your fault for not doing your homework. Saying never buy a flat is nonsense.
@@NicoleSage They dont and it's usually the first step on the ladder for many sadly.
Service charge was for 2 energy bulbs rigged to a sensor. Freeholder has since sold his flats so is now getting atleast £5k a year for them 2 bulbs..
Also when selling he held up the sale by 6 weeks by not responding to solicitors qs. It was a relief to get out of the jaws of these scammy freeholders.
Good video. I'm a BTL investor and these are all the things I check when buying leasehold properties.
I think you are just missing some context around, reasons you bought a flat and reasons you sold and area you bought in (London I find is more prone to strange niche leaseagreements). Buying for BTL purposes and holding for the long term is vastly different to buy to live in.
Remortgaging leasehold especially flats can be volatile. I had a situation where banks refused to lend because of EWS1 certification. It was at a time where the legislation was not finalised and banks had misaligned requirements to Leasehold management agencies. That has all been sorted now.
Something to consider.
Thanks for watching, great points, although this video wasn't designed for BTL investors on flats and instead for those deciding between freehold and leasehold/first time buyers who might not be aware of the complexities that come with it.
The only Con that I think you haven't mentioned is the fact that you cannot (and must not) make any alterations to the flat. If you want to, say, move a doorway to a more convenient position, or knock down a wall to open the room up, you will have to apply to the Managing Agents, who then apply to the Freeholder, for a "Licence for Alterations". As you have found out to your cost, both charge just to answer questions - a real rip-off 🙄🙄 ‼️
The Licence is drawn up by the Freeholder's Solicitors and YOU will pay the Freeholders costs and his Solicitors costs, the Managing Agent's costs, as well as your own costs. In other words 'Everything Costs'.
When I mentioned all the problems involved with buying a flat to a friend who was about to embark on this 'big mistake' he did not believe me ‼️ I have not seen him since that day (when I told him - 2004?) but often wonder if he went ahead and if so, now regrets not listening to me 😒😒
Thank you for sharing this and this is a really good point I forgot to mention, it’s absolutely obscene - same with enquiries for whether you can have pets in the property, just reiterates the point that you don’t own one brick. Let’s hope your friend didn’t find out the hard way either, many choose to listen to what they don’t want to hear!
Common Hold is good, but not very widespread. Very long Leases .(In my case over 900 years, so low cost) All owners can form an Association & Themselves manage expenditure. A combined fee is paid for the Joint Freehold.
That's interesting to know and does seem better than leasehold with length of lease and costs
thanks for this video, I wasn’t going to buy a flat or a house but its good info to know
You're very welcome!
Never, ever sign a lease agreement -
1. it's the same as renting, but with extra fees.
2. you never own the property
3. you can't sell the lease on later as nobody wants it. - it's a money trap.
Absolutely, perfectly put 🙌🏻
Even houses can be leasehold 999 years, does that really matter in the grand scheme of things?
Yes. I did manage to, but had to rely on it being a pretty flat in a good ,location. I had an investor really mess me around, wanting 20k off the price to buy out the permission on the lease. Mine has 110 yrs left. Managed to sell, huge relief.
So you sign a lease agreement , when you buy it , I dont understand
Thank you for this ❤ I am looking to buy but I’m single so a flat felt like the best option. I was aware of some of the risks so I’ve been on the fence with it for quite a while but there’s so much more you mentioned that I had no idea about. Thank you again, you’ve just helped me make up my mind about not buying a flat now x
So glad it helped, thank you for watching! 🥰
My first boss in Australia told me to never buy an apartment in Australia. Ever. I listened and am happy i listened.
It’s great when people give good life advice!
Bought a flat in Scotland and there's literally none of the issues; everything is freehold, there are severe restrictions for short-term rentals in my city, factoring company takes care of all issues and maintenance but we have a community and platform to discuss with and challenge any work they're planning and what they're charging. Tenements are also an option where there's no factoring in flats and you share costs between all owners of the address. Fact is that the English government is not doing enough for its working people and legislation has to change to eliminate this legal theft
Strictly speaking there is no such thing as “Freehold “, you simply own the property which was under feudal tenure and that kind of holding was abolished. It was not replaced by so called Freehold. And of course there are no Leasehold houses or flats.
I bought the freehold for my two bedroom flat for £500. Its in a nice safe place in a lovely area.
There are situations you can acquire the freehold at a cheap price, it depends who the main freeholder is. Many flats in England are controlled by huge companies, it would have cost me £16k to buy a share in the freehold
What about if it’s owned by the council ?
Completely agree with all your points. The service charge was something I used to dread every year, but the biggest problem I had was the late night noise from the residents who lived above me, plus all the stomping around right above my head, and people who liked to make late night calls to their friends right outside my window whilst they were having a fag. Young people might not mind that so much, but it used to drive me crazy. Flats definitely have their advantages as you pointed out, but no way would I choose to live in a flat again. I live in a detached house now - the peace and quiet is bliss and I own it, not some landlord.
That sounds exactly what I had to put up with too! The block had 3 airbnb properties so weekends were the worst, charging through the door at 3am or being sick out the front, don't miss it one bit! Glad you're in a house now, it has unmeasurable effects on your life and wellbeing!
Yup. The drug-dealer neighbour seems to be obligatory. In the UK. the one near me refused to go away. Except when he got arrested for shooting somebody in the head.
Omg that sounds awful. Doesn’t even matter if you live in a nice area, they still worm their way in somehow
@@SageLynxx very similar happened to me, one day he just disappeared then found out he had gone back into jail. Totally agree, they get their comeuppance eventually
Thanks for taking the time out fir such informative/educational points
You're very welcome, thanks for watching!
Come across a flat leasehold which is contained within a block of other flats that are mostly council owned, council is the management company. Service charge is only £800 pa, 105 years on lease.
I love the flat but unsure as a first time buyer if it's worth the risks...
Are you able to do any research on the council who is the management company? Maybe worth doing a search for them in the national leasehold campaign group on Facebook to see if anyone has any experiences. I think the only thing that would put me off is the lease length, unless you are considering to stay there for a while then it might not be as much of an issue to you. This is the group: facebook.com/groups/786983251448976
I would point out that you can buy the share of a freehold with a flat/house too (with the other leaseholders in the building). Don’t forget. Rare but it’s still possible.
Yes, this is a great point thank you
*so you got flatteringly flattened ?*
I haven't even pressed play yet but I already know from experience that I wholeheartedly agree. Never again. Service charges, leasehold and ground rent are an absolute con.
I agree its a bit of a lottery with flats. The number one problem is the neighbours, they can be lovely but also they can be a nightmare if they are difficult, badly behaved or you end up falling out. And you can't get away from them - everytime you open your front door you can to bump into them! The number two problem is the freeholder's management company - they are generally really hard work. What most leaseholders don't understand is that they are all fighting over a limited pot of money - so what they consider a priority - isn't necessarily a priority for the freeholder. Its probably fair to say, if you want to be in control of your surroundings a house is a much better option.
Totally agree, neighbours and freeholder, the things you really cannot change/ be in control of!
Correction: if you have a roof problem as freehold u dont need to pay 15k, you get buildings insurance for a reason….
I live in a flat the only charge I get is £25 a year lease 985 years left and freeholder doesn't make us pay it
That seems like a great deal, really does depend who the freeholder is, it's the bigger freehold companies that become a problem
@@NicoleSage uh its an old townhouse 3 story's so I'm bottom basement flat, and they live at the top
It’s called peppercorn rent. Funny name and a very old term. Interesting history if you look it up. I never had to pay mine either.
I wouldn't have thought the rules are the same across the UK? You are saying real estate regime is the same in Scotland, Wales, England and NI?
All the info re owing a leasehold - wouldn't that be availability online, so before you buy, you can read about conditions and issues?
Yes, this meant to say England, it is very different in Scotland as most are freehold, I'm not sure how it works in Wales and NI though.
Some info is available online, but leases vary from property to property so due diligence can only be done with your own lease and the freeholder of the property.
@NicoleSage thanks so much for clarifying.
Also, I have noticed that lots of freeholders sell the air space above the apartment block to developers who then construct additional storeys for new flats.
That’s interesting, I have heard of this done in the US
A very good explanation and description
Thank you so much for your comment, much appreciated!
Oh wow!!
In my country, our flats/apartments > there's 2 types - "public housing" & private condominiums.
Charges are pretty upfront for purchase & selling.
Leases (when you buy units brand new) are either 99yrs, 999yrs or freehold (public housing are only 99years).
Issues with leases are only when you need to get loans to finance the purchase (if your lease are less than 60yrs).
Thankful that additional charges are regulated and very transparent.
No way! What country are you in? I do think the English leasehold system is the worst, if everything was transparent and costs laid out like you say, it would be a much fairer system for everyone
@@NicoleSage > I live in Singapore. I just purchased a 2 bedroom flat under our BTO (Built-To-Order) which took almost 5years to be ready (the only downside) but it comes with 99 years lease. But if you can't wait, you can buy from the resale open market > leases would range from as long as to 90 years to as short as 30 years. The only thing you need to worry about buying a flat with less than 60 years lease would be your mortage or loan amount.
Apart from that, any other matters are VERY transparent. It's the law here. Property agents has to make everything transparent & upfront.
How interesting, thanks so much for sharing! Congrats on your new purchase :) @@nur_aryani
Agree with most of your cons. You are always at the mercy of the leaseholder = slave for life.
Worth also adding, you can't make many renovations either without the leaseholders permission (they can be difficult sometimes too).
Totally agree. Yes that’s a great one I forgot to mention, and you often have to pay for the enquiries (at least I did with my freeholder) same with pet requests.
@@NicoleSage lol yes! They would charge you for every email if they could. The government massively needs to do more to scrap things like ground rent, absurd jumps in service charges etc.
Not to forget, they all take an under the table "cut or bribe" for large repairs to take out of the sinking fund. For example show a roof replacement of £100k when it could have probably cost half the price.
We always assume corruption happens in third world countries, but happens here too, just a pen 🖋️ (guess can call it white collar crime).
I don't own flats but all this was enough to put me off, I would buy to rent but not for myself. But appreciate they are more affordable and sometimes one just doesn't have a choice.
@@NicoleSage you ALWAYS have to pay ‼️🙄🙄
Not in Jockland
My contribution would be to absolutely be mindful of air circulation within the property... most likely you are viewing it while it is empty so there wont be any airborne damp, trickle vents in the windows ventilation to outside in the kitchen and bathrooms... this can be so overlooked with flats as its likely a small area with clothes being dried indoors as opposed to outside... especially during the winter months...
That’s great advice, also pay close attention to buying in the summer as damp is easy to conceal, problems often don’t begin until the winter kicks in
I lived in a penthouse flat with fantastic views for three years. It was new, easy to keep clean and warm. Great! But the neighbours -- lovely people all of them. One snored like a buffalo in a temper, the noise reverberating through the wall so I'd have to go into my lounge to sleep. Another chain-smoked out on his balcony so that in summer, I had to keep all my windows closed to stop the smoke drifting in. Another got up at five in the morning to go to work at the airport and thoughtlessly slammed Kitchen cupboard doors again, and again until he finally went out slamming his front door. Bang! Then there was the very amiable Asian family. OMG! The terrible stench of their cooking was beyond the pale, and I'm someone who does enjoy a curry! The service charge fluctuated every quarter to cover such costs as removing large items dumped in the bin-room, eg mattresses, broken furniture etc. In general I loved living there, and being a beautiful flat it sold quickly, but I have no regrets about leaving -- none at all!
I honestly think neighbours is one of the worst things ever!! Yes, you get it with housing too, but so many more problems when you're in a shared building with lots of other flats, you can't escape it. Well done for getting out!!
A flat was the only way I could get onyo the property ladder and I plan to be here for at least 3 more years. Im glad that I knew enough about service charge and ground rent before buying, so that I didn't get a bad deal, my management company is also pretty good on keeping us updated in what work is going on and what is being spent on what.
I dont like the flat I am in but it was all I could afford at the time, im also really worried about the resell value, however there are more pros to the flat than cons. One of my biggest current cons is that I can't renovate the flat or even change the carpet out for wood flooring, there are quite a few limitations which are harder for me to work around. I only found out a day before I signed the papers that I also can't have pets... I don't want pets anyway so I signed but that's going to effect selling, however my upstairs neighbours do all have dogs so I'm still unsure how lenient the rules are
I'm glad I got my flat, but I look forward to the fay I can be in a freehold property
So glad to hear you've had a positive experience with leasehold and hopefully resell value will be good when you come to sell. I think all leases have the pets clause, and generally if you request an enquiry (at a cost of course), they tend to accept, I think noise concern is the main issue they have with it. Thanks for the comment and sharing your experience.
Don’t forget cladding !
Yes, thank you, totally forgot to mention this, the worst leasehold issue of all
I had an offer accepted on my flat about the time this video was posted! Ground rent issue has caused a huge problem, EWS1 was a huge issue and the managing agent is awful and have and are taking months to reply to anything.
The key thing I've learned is to check out who the managing agent is before you purchase. My next property has decent reviews so I'm hopeful.
So sorry you've had to go through this process yourself, I know EWS1 causes major issues. Best of luck with your new property, a good managing agent makes a huge difference!
We bought flat in Croydon 2 years ago and we are really happy. But our landlord is council and that makes BIG difference!
Paying £10 ground rent and servise charge £300 a year. Planing to increase lease and going to cost us £5000. I think its makes massive difference, who is your landlord.
YES, you are right, who your freeholder is will dictate how expensive and difficult it will be. Due diligence is definitely required prior to purchasing - I was unfortunate as our freehold got bought out 2 years into owning it by a big freeholder in the UK, in hindsight I just didn't know enough about this side of leasehold
Great video BTW :-)
We bought our flat with 90 yrs and we paid £5000 less because we knew we need to extend it in future.
But the whole leashold in this country is absolutely nonsense, that's for sure.
Really good video, with so much detail and personal experience. Thanks for posting.
Thanks so much, appreciate it!
4:20 If there is a water leak originating from your flat then you are responsible for it and all the damage it causes to flats beneath you.
Great video! Why is it so pressing to get a lease extension when it gets to 90years? Just because it will be more expensive the longer you wait? Because that's still a long time.
Thank you! When it gets to 80 years something called marriage value comes into play so a lease extension starts to cost even more money from that point forward. The less years left the more expensive it becomes which is why it’s important to extend before that time, however, when the new lease reform comes into play (whenever that will be) the marriage value element will be abolished
First the security IS an issue - you cannot rely on other people in your building to be as security concious as you are. They might leave the main front door on the latch or even wide open, enabling strangers to walk in. Not good 😒 Second, you may well pay a service charge and pay into a sinking fund for major works BUT I can assure you this will never cover totally the works needed, your managing agents will see to that - they are usually self-serving and pay themselves great chunks of money and you will be asked to cough up some additional sums, which are usually large ‼️ so beware 😒😒
Yes, tbh I did have this with the drug dealers living above me, back door left open with the broom against it constantly. Again, yes sinking charge is there but undoubtedly will not cover everything, very luckily I didn’t get embroiled in this but know something happened like this just after I sold up, thank you for sharing
@@NicoleSage You're welcome ... and I'm glad you got out of this whole fiasco relatively unscathed - my comments are not just for you, but for others watching your vid and reading the comments - you learn so much from others' opinions. I worked at a solicitors during my whole career as a secretary, and picked up all this knowledge through that. An important point you make is finding a good solicitor ... when I have to hire one I ask how long they have been one, and how long in this particular field of work (including leases in particular if that's what you are after). Always remember _Experience is Everything_
Always wondering when I heard that, how spending 10-15k for a lease extension is expensive in order to spending 500-700k for flat/house?
Lease extensions can’t be added onto mortgages and is an upfront cost, also it doesn’t matter if the flat was £90k, lease extensions are a similar cost regardless of the leasehold price
@@NicoleSage cheers, make sense now but is it also an investition and adds some more value into property?
@@BartMiko No problem, and it definitely makes it more sellable having an extended lease for sure
What about freehold flats? Most flats in scotland are freehold. Still have all the same issues.
That's interesting, I have no experience with freehold but lots have said on comments mixed things that freehold is the best but others have issues still when it comes to selling
I believe Lease holds are a regional issue. When i was looking for a 1st buy in Scotland, i found out all flats were freehold, not leasehold in Scotland. Quite different to England, for example.
Yes, you're right, I didn't realise this until last year that this was the case in Scotland
Thanks.
Comprehensive and detailed discussion.
You know so much, you should become an estate agent. Lots of people need this kind of information, including investors from outside of UK.
Thank you so much! I absolutely agree - definitely learnt a lot on the way and hope I can educate people to think twice about the implications of leasehold
I see loads of flats going up for sale near where i live .
I said to the wife the other day thay look nice but i bet people are selling up due to the hidden ground rent and maintenance bills.
i said thats why i sold up when i met you .
i have looked up what that property is worth now
i took it on for 22.000 and sold it for 40.000 and had it for 9 years .
but the biggest pain was ground rent and maintenance but i dont regret selling up i have been with my wife 23 years.
oh and when i looked at the place its now worth 140.000 its plain madness but i dont regret sell up and it was never about money i now rent and we have a nice place
I've been monitoring the market recently and seeing the same, flats are on there for months not shifting too whilst landlords are selling up as they can't afford the rise in mortgage costs. You did the right thing selling up when you did, the money is all relative at the time and sounds like you're in a much better position now, there's a lot to be said for renting and not being tied into ridiculous loans/interest rates
Very informative, i knew like 90% of the info. Luckly.
Yeah i agree leashold is a very big headache .
Coucil tax is still paid by apartment. No?
If changes to the building are made. Only the management decides or is there like a vote if the people agree?
Lets say the management wants to make a automatic parking barier. Can the people vote no? Also because of extra costs?
Yes, council tax still paid individually per apartment, IF the leaseholders want something done in the property then it's usually done as a vote that is put forward to the freeholder, however, the freeholder can say the building needs something doing and each freeholder has to pay a share, you can appeal some of these things but the route can be convoluted and difficult. If they wanted an automatic parking barrier for example I think they would have to prove why it was needed to the leaseholders, but not entirely sure as I was only in a 5 block property so was unaffected by much bigger costs like servicing lifts etc.
if you have a leasehold property, you do own the property or part of, but not the land it is on.
Yes technically, however all you own is a lease agreement, if you let it run the course of the lease term without extending it would go back to the freeholder. You have to ask permission for any alterations within the property too, it might feel like you own it but you’re always controlled by the lease and freeholder unless you buy a share of the freehold
A massive problem is the low build quality and no noise isolation. UK build quality is terrible and even a semi-detached with a bad neighbour will also send you crazy.
Yes, totally agree - new build properties are terrible for this.
Very detail and informative and great video
Thank you!
I hate flats because of the leasehold thing but if you want to be in a city it's the only way at times
Yep completely agree, it’s a catch 22 in some cities
I highly recommend renting high end furnished properties. Yes, you will pay a premium, but it's a premium lifestyle. You have no responsibilities or additional financial obligations, and you can easily move to a new location when you feel like it. Just do your research to ensure you will like the place. I had a stipulation that I can't hear the neighbors, and there cannot be someone above me. Am currently in a fantastic flat - beautifully furnished, quiet, great neighbors, perfect location, good landlord. All my friends freaked out at the cost and tried to scare me out of doing it. "You are paying that person's mortgage", etc. I would hope so! Why else would she rent it otherwise? 🙄
Family member in lovely over 50s flats.three story.the lift has been out officer three times!!!..this time for six weeks.some of the people are struggling..good information..beware.
Oh gosh that’s terrible!! Hope they get it sorted soon, there are no repercussions for these freeholders!!
5:17 Except AirBnB rates are crashing in the USA and likely to crash here. And AirBnB regulations are getting tougher all the time. So neighbouring AirBnB properties is no guarantee of future price stability.
I went to university in Plymouth so lived there for 5 years, definitely thinking of moving back with my partner as we loved it there!
Mainly lived in the east of the city, and really like the look of houses in the Saltram Meadows and St Judes areas.
That newish flat building on Notte Street is very very posh, I fan imagine the service charge there is very high.
Ah how interesting, it is a lovely place to live! I know a few people on the new build estate at Saltram Meadows which is meant to be nice, the only think with St Judes you have to be careful of is there can be a lot of student housing around there.
Gosh, yes!! Anything with lifts and lots of flats = high service charges in general. good luck if you make the move!
@@NicoleSage A reason I like the area so much is because I liked close to there as a student! I used to deliver for Tescos so know the people quite well, and it seems that the student properties stop around Tothill Park which we love.
Thank you, hopefully get out first home in the next few years!
I agree with you. Our family been involved with flats. You can bee screwed over with a lease and maintenance contract.. It's a way of getting more out of you whether you rent or buy. Yes Rental as well. Extra added on to your rent. Watch out. Avoid or try a deal with the land lord or seller. But that's not very hopeful. Thanks for the info again.
Thanks for your comment! Yes, rentals can be just as bad, but at least you can walk away when the contract ends, sorry your family have been involved in issues like these too, terrible system
Thank you your assignment was very informative am in this situation as a leaseholder n single.
Thanks for watching and sorry you're in this situation too, it's the only viable route for so many onto the housing ladder but full with so many complexities
This is one thing I never understand in the UK property market. In Poland we have a flat as freehold. If you deciding to buy a flat once you paid out mortgage you are the owner of this property (your flat). So the only one fee you pai is service fee but this often contain water supply + waste collection and heating. For example you pay £150 monthly and this will cover what I listed above. If you getting to financial trouble thay might cut suplly of utilities and you might own the government a property tax but you can not be kick off the property once you paid your mortgage off
English leasehold law is so medieval, there is no other country like this, it seems so much fairer in Poland!
Does this differ at all in terms of buying a townhouse style of 'flat'?
If it's leasehold, I'd say that your servicing charges will be a lot less if you don't have a communal entrance/shared parking facilities, just pay attention to ground rent and the lease length when looking :)
@@NicoleSage thank you!