I think the term "leasehold" is a bit confusing here as it took me a few sentences from Evan before I understood what he meant. He is using the term as in you are renting 75% of the property so you hold a lease for this portion. The more common use for leasehold when dealing with property is when the property does not come with the land that is underneath it, so while you may own the house on top of the land you still pay rent to the landowner. When you see "leasehold" on a property for sale listing at an agent this is generally what leasehold is referring to.
Yeah single dwelling (house) you can get freehold, so you just pay mortgage. Leasehold is ground rent as well as mortgage. Avoid if you can!! No restrictions on how much you will have to pay. For multi occupant (flat/apartment) you will alway have to pay lease fees, or service charges (for USA folk) as the building will take fees for upkeep. What they have done in London is double lease. So in effect Evan is paying two landlords and paying a mortgage. I have no idea why anyone would opt for that? You can get way more and simpler agreements just outside and it takes the same amount of time to travel anywhere!!
@@christineperez7562 yep, that's why I moved up north in UK. Literally quarter the house prices. Now we all work remotely have got job at Southern pay rates. My pension thanks the stupid UK housing market 😂😂
@@yverose8355 Leaseholds are common in the US in the mobile home industry (you own the mobile home, someone else owns the land it sits on), but we don't call it that. They were a really cheap way for people to live until the 2000's, when some businesses decided to buy up all the mobile home parks and jack up the rent on the land to the point that mobile home owners would abandon their homes to them because they couldn't afford to pay the rent any longer nor to move their home somewhere else (often times moving a mobile home will destroy it, anyway, because they're no longer made to be moved as they once were so the name is now a misnomer). Once a great idea to live cheaply now ruined by rich, greedy people.
I have went sale agreed on my own house and hope it all goes well with no hiccups. It was the first house I viewed and fell in love, near family etc. i was in a bidding war and the owner chose me, a first time buyer with a mortgage over a greedy landlord cash buyer who wanted to rent it out to students for extortionate prices. Shows there are good people in the world 🙏🏼🙏🏼🙏🏼
We recently met with a financial advisor, and while I know our situation (DINK, living and buying in Northern Ireland) might not apply to everyone reading/watching, we did get some great advice re co ownership. DO NOT FORGET, if you don't consistenly buy back portions of your property that the developer/council own, you will end up in the hole. Eg, you own your 50% (NI typical co ownership) and party B (gov/developer/whoever) owns the other 50%, and the house was originally 180k, minus deposit we'll say 160k, so you'll pay mortgage on 80k and pay rent on 80k. Ten years down the line say the house is now worth 250k - you are now paying the rent on 125k rather than 80k and you'll have a bigger windfall to make up. Yes your part is now worth 125k, but so is party B's. Our advisor said that the worst instance he saw was someone buying a house in the 90s on an early co ownership plan for 90k that's now worth 290k, and they had only started 'buying out' the council's share about 5 years ago. They simply forgot to renegotiate their share payments, which is apparently the biggest mistake people make with regards to co ownership.
@@nicolelake5848 I know, finding the affordability balance between increasing your share and paying rent on theirs is also hard. We were advised not to use it unless it was a complete last resort.
In England, the rent portion is controlled and only increases by about 0.5% a year, it doesn't increase in line with the property value. But what you're saying would apply if you're buying more shares. You also have to be careful if you sell your shared ownership place and then move into another one. Firstly, this is a huge hassle, cause you have to sell yours before you would even qualify for the next, but secondly, you can be due to pay stamp duty if you ever go above 80% on that property, and that would be due on the whole share you're staircasing by. So if you go from 40% to 80% on that second property, you'd have to pay stamp duty on that whole 40% step.
@@RB-747 This is correct. You can live in the property for the duration of the lease. You own the lease not the property although you still have to maintain it to the benefit of the freeholder.
It's the worst of all. Shared ownership in what is probably an obscenely overpriced poorly constructed leasehold apartment. Pray to God Evan that the cladding is OK.
I have the impression that Evan never had a meeting and proper conversation with his solicitor/conveyancer, they would have explained precisely what leasehold is, the obligations and the disadvantages. Evan seems to conflate leasehold with shared ownership, the two are quite separate.
For what it's worth, it's always better to put the lid down before you flush so that the contents doesn't aerosol into the room, but always good to check it's completed once its finished flushing.
Loving the stories and so wish I could come over and give you tutorials. Bought my first home at 23 and learned so much (before UA-cam). I still do tons of DIY, but now for my mom. Get a good basic tool set, read and watch all you can, asks friends for help first (they are kind and most often free). Your design style is on point, just need to bring your DIY game to the same level.
Also might not hurt to just ask to have consultation with a plumber for nominal fee to learn where all the shut offs are and things you should learn to fix ans when you should call. In the old days, could change washers, no more. Make sure turn offs aren't stuck open by moving them every 6 mos-yr. Best of luck
Good advice form Lacey and Cheryl. UA-cam will prove to be very valuable. I use it for all sorts of things particularly where I need to see someone actually do the repair in a stepwise fashion. My other piece of advice -- talk to your friends about where they get their plumbing work done, electrical etc. And then, when you've found a really good plumber (or other repair person) you ask them 'oh hey, do you know a good appliance guy? or HVAC guy? or whatever'. That's how I've found good help for my rental properties (yeah, I'm a landlord) for anything from hot water heaters, appliances, plumbing, minor carpentry for steps, roofing, etc etc. There's a whole network out there just waiting for you to tap into it -- because, they're good honest business folks that get business 'by word of mouth', not advertising.
Ditto on all the above comments. Unless you remove a load bearing wall by mistake you'll be fine especially now you know where the water shut off is now. UA-cam is a homeowners best friend
Hang in there! Once you’ve got through the snag list you’ll be fine!!! I’m in an old building as a leaseholder… a 50 year old lift, a central boiler that only gives us heating Oct- March. Just remember to have full building insurance, even though your lease will say the building is covered (bricks and pipes only!). Also ask your water provider how they are calculating your bill. I didn’t do that for 2 years and got charged double I used… best of luck xxx
Often these days, plumbers will put a small in-line stop valve in pipework to (for example) toilets. These have a flat screw-type head in the valve, which you can twist to turn on and off with a flat bladed screw driver, rather than having to turn off all the water with the main stopcock. These are convenient, but can tend to leak as they get old, as we just discovered.
Came here to say this. Should be able to just turn a screw on the input pipe. Can you lift to top off the cistern? Might just be flush unit is out of alignment. I've sorted mine with zero plumbing experience.
Any valves including the stop cock should be turned a quarter of a turn and back every three months otherwise the one time you need it you can be guaranteed it will leak, they all do.
I love how shut off was just no where near your realm of thinking😂 Great video, becoming a homeowner is definitely a process. Wishing you a happy Sunday and safe travels!
Leasehold is linked to the land so you could be a 100% owner and still be under a lease if you don't own the land it is built on. But I totally understand the woes of shared ownership which is what you meant. Have a good read through your leasehold documents so you know your rights.
@@nicolelake5848 Leasehold comes from our feudal past. A lot are/were owned by the church. It also makes sense in a block of flats where you wouldn't want a resident to strip their flat for salvage & let it stand derelict. It'd be much harder to stop them if it was freehold.
@@ethelmini Exactly, I'm in a small block that was owned by the church. If we wanted to buy the freehold we could easily for less than £5,000 or take over management. But it's all good so no point now.
You’re doing fine, no worries. I bought my first home on my own - post divorce - in my mid fifties in the US and was still amazed at the things that came up. Homes are money pits on the one hand, but also an investment on the other hand. You do seem a lot more relaxed now. And it looks like a comfortable home reflective of your taste and personality. Great job for only a month and a half!
Honestly, it might take me until I'm 50 to gather enough money to actually buy a flat where I live, but after I've seen everything you've been through, that is what I'm doing.
You can hire a specialist that will go round the new build and do a "snag check", then will make a list for the developer to rectify, as your contract should state what condition the property will be in. You could do the list yourself after getting the keys to the property, checking all the plugs, data connections, lights, heating, water etc, as developer's only interest is your money in their bank account.
Hello fellow new homeowner in a flat! Mine isn’t a new build so don’t have quite the same teething issues, but I am a first time homeowner too and boy is the learning curve STEEP!
Damn, this shared ownership thing sounds really confusing. Are there actually any upsides to this? Just seems like it combines the worst aspects of renting AND owning a place.
You have a home is the upside. As Evan said it's the only way he could get one in London. It's that balance of having a place or just renting a place. Although if you only have 25% of it the remaining 75% can bit you on the ass with increases as well. It's a good starting point if nothing else.
I agree to be honest that it sounds like the worst of both but the main upside is that you can’t be kicked out at the will of the landlord and given 2 months to find somewhere else and you can pretty much do what you want when it comes to decorating and having pets. So it’s the security of that. (Although you can be evicted for not paying rent.) And then the other upside I guess is that you can eventually buy the rest of the property share and you’re already on the property ladder. Personally I would rather rent until I could afford to get somewhere with just a mortgage and 10% deposit but that’s easy for me to say in the north east. London sounds tricky
The only positive is that you get a place to live with a bit more stability. But it's essentially a scheme to ensure developers can see a return on their investment and squeeze as much profit out of property as possible.
@@HayleyC8D Just an FYI, some shared ownerships still have rules against pets. Usually when it relates to a leasehold property such as a flat. They’ll use the excuse that the shared areas will be contaminated with pet hair and others in the building have allergies. So you have to be careful and double check.
I work in leasehold and honestly I would never buy a leasehold property 😬 you don't just get charged for repairs, it's also general maintenance e.g. cleaning, ground maintenance but also a management fee for the company usually. I would 100% recommend that you try to get compensation for the month without heating!! Put in a formal complaint and keep escalating until they give it to you.
Your business I guess, but why on Earth would anybody buy a property in London - that you barely even own...(25%?!)😶 Just don't see the point when there are quite a few decent, more affordable cities in the country; some of them with great rail links to London. Most people I know here who have the luxury to work remotely opt for such places, instead of spending their total wages on impossible rents/mortgages that even their grandchildren will never pay off. So unless you absolutely can't help but be at the mercy of London's stomach-turning housing market (or are an undercover Bruce Wayne), I'd really discourage anybody from taking the same route you have; aside from the crazy prices & increasing public transport fares, etc - it's also rapidly becoming one of Europe's most unsafe & unliveable capital cities. I've spoken with very few Londoners who boasted about having a great quality of life/living conditions whilst there; most of them are looking at ways to transform their jobs into a fully remote ones, so they can keep their salaries, but move just about anywhere else as quickly as possible. As a UA-camr, you already have this, so again, your choice to settle down there is a bit baffling to me. Obviously, it's exciting and has a lot to offer, but honestly, you don't need to move to London in order to enjoy its good bits.🇬🇧 (To all the Karens getting ready to @ me: horses for courses; just my opinion.)🥰 Edit: Also, this is from someone who loves day trips to London & the city in general, btw - but would never move there: just not worth it.
I have to agree, unless you are wealthy living in London is going to probably mean living in a small flat in a crappy area and paying through the nose for the "privilege". There are far nicer cities to live.
Leasehold and shared ownership are very different from each other. Nearly every flat in the country will be leasehold (or share of freehold) as you don't normally own the whole building (stairwells, entry ways, etc), but you own 100% of your flat.
If it's leasehold you don't own the building, you simply have a contract to live in it for x number of years (length of lease). Once the lease runs out you no longer have any right to live in the building. You can extend the lease length for a fee.
Yes, so many people here still think they own something under a leasehold (or they just pretend to be able to ask the prices that don't make any sense for a literally rented accommodation). Also a share of freehold has nothing to do with the freehold ownership either, as it's just another type of leasehold.
Invest in a good ball of string - when my flush partially died I extended its life by a few weeks by tying a piece of string to the cistern valve and manually raising it to shut it off. I was quite proud of my Macgyvering!
This whole cost of energy crisis has made me unbelievably infuriated with the government. I'm a student and my max loan amount has stayed the same (about 4k), but my rent has increased by £500 a year, and obviously groceries are pricier too. They said the £500 increase (per person in the flat) was because of energy bills, but when asked they admitted that my energy cap before I would have to pay out of pocket has only gone up by £25. I asked why and they said that I 'didn't need' any more. Eventually they admitted that they were using energy bills as an excuse to hike my rent up to match the 'competitive prices' on the market. This is devastating for me, considering my loan is the same but I'm seriously out of pocket on living costs. My loan is already less than my rent alone, so I'm forced to find income from other sources whilst being expected by the uni to put in 40 hours of work a week which leaves only a small amount of time for work. Upsettingly it doesn't even cross the government's minds to increase the max loan amount, but they will shamelessly allow companies to charge more and more for basic things like rent and energy.
ok, so i`ll apologise for how this comes across as i probably won`t word this right. you are infuriated with the government because where you rent your rent has increased because of the energy thing, but not really its because the landlord is milking the situation. while its a shambles from the government (although not sure how they can fix the situation when its supply outside the UK thats gone up in price), it`s not their fault your landlord is by all accounts taking advantage of the situation. if i was in your shoes i`d be infuriated with your landlord as they are the one taking all your money. i`m not trying to defend anything of course, just saying the target of your infuriation should be your landlord who is being scummy. As for letting companies charge more, again, thats the problem with our supplies coming from abroad, its not something they alone can influence. if it was energy from a UK source then i`d fully agree with you btw, just its not so they can`t control like what your or i would want i guess.
@@BBThemes that’s a very fair point. my landlord is definitely to blame. but at the same time, the cost of living crisis is nationwide and the government should step up and increase the amount of money I can loan from them as a student. while my rent increasing might be a me problem, everyone’s energy bills and living costs have increased but student loans never increase to reflect this.
I moved into my new house a week ago and Friday night I had to call the gas board out because I could smell a leak, he said it was quite a big leak at the back of the oven, so now all of our pipes need to be rerouted and that’s going to cost a fortune 🤦♀️ moving is a pain because you find so much wrong 😅
Hey Evan, as someone who moved to the US 2 years ago and now moving back to England. I cannot say how much I appreciate all your videos. From the cultural differences. To the sheer honesty in how living life is. All the issues and developments have been so interesting to see unfold. So glad you've found a home in England. Such a brave and bold move. Hope you settle in nicely, especially in London!
I'd say run far away from Leasehold/Shared Ownership properties when you can! Freehold is what you want! As for "management" companies, one needs to be polite, but very stern with them I have found! Good luck sorting everything out!
I knew I shouldn´t have clicked in this video. I'm building a house alone (as in I contracted someone to do it, but just myself no partner, family member, no one else involved). The amount of work, and sh*t I'm going thought because the architects, the contractors, the utilities companies JUST DO NOT COMUNICATE PROPERLY what they need to someone that is doing this form the first time, is astonishing. I've been trying to have running water and electricity since summer... I'm in an infinite loop of e-mails and calls, still no clear answers... And now Evan says that I have to be prepared to things not working once I'm actually living there.... No ma'am no sir. I reject. At first this content was relatable, now I just want to cry.
this leasehold stuff sounds like a con. it's like you pay to own part of a house, meanwhile the homeowner or land developer profits off of you and you fund repairs and stuff like that. It's common in tropical tourist areas like Belize (where my mom is from) and Hawaii
@@danielareyes199 yes. I'm american lol. That only counts for property broken that is nto of your own cause, though- which is where the hard part comes in- proving it is not your fault
Flat looks great Evan, I love earring your stories because they are so relatable. When these things happen (and they happen to everyone) we tend to feel so beleaguered but it is important to remember that they happen to everybody, I watched your video thinking, god I hate moving into a new apartment........
My place is years old and well built, but I do need to consider a new bathroom and I am dreading it. Dreading it. I feel your pain! Thank you for the video! Have an amazing week!
I had a shared ownership flat and the whole thing is awful. Your are the home owner so everything that goes wrong is for you to sort out, but you still have rent and to deal with the landlord/“management company” who are always putting the rent and service charge up but the upkeep of communal areas deteriorates rapidly as soon as all flats are “sold”. Not just my experience my husband, when we met, also had a shared ownership flat managed by a different company, same problems. My advice is staircase as quickly as possible and get out to a freehold property, in London that might require a Faustian deal but rather that than a shared ownership.
I'll toss my 2 cents into this ... I bought the house I'd been renting for several years. Best purchase ever - I already know all the possible issues, and I didn't have to move anywhere.
For anyone wondering (I work with property ownership), in England and Wales there are three main types of property ownership: Freehold, leasehold and commonhold -Freehold is essentially owning the property and land with full, indefinite rights, although sometimes the mines and minerals might be excluded, as well as certain floor levels (a flying freehold). -Leasehold is there you buy the right to hold the land for say 125 or 999 years, and after that ownership reverts to the freeholder (although you can statutorily extend it which removes any ground rent and adds 90 or so years on to the lease) -Commonhold isn't often seen, but was seen as a way to replace leasehold and introduced by New Labour. Essentially, you own the strata of your flat outright as if it were freehold (so like a freehold, not a leasehold) and jointly own the common areas with the other commonholders. What Evan has is a shared ownership flat, which is where he holds a leasehold for a certain percentage of equitable ownership in the property (25%) which is what he buys, and the remaining 75% of the equitable ownership is held by, commonly, a housing association. It is possible to staircase which is buying more shares of the property, although that can make selling difficult later on. Flats and sometimes houses are otherwise normally 100% leasehold. Evan is the sole legal owner of the property, just that the equity in it is split with another party and he pays rent to that party in addition to his mortgage payments.
I note your and others qualification that *essentially* freehold is *similar* to owning the land. Basically, all land in England and Wales (maybe Scotland and Northern Ireland?) belongs to 'The Crown'. When you purchase a 'Freehold' you do not *own* the land, you merely have the right to use the land for permitted uses, usually only permission to keep approved buildings on the site and cultivate the 'topsoil'.
Whilst I appreciate the anecdotes, it’s fun to hear the hilarity of owning your first home, I was a little deterred by the confusion that you made within the first few minutes of the video between leasehold and shared ownership. They are two very distinct and separate things which are often confused, because all flats are leasehold, and most new builds are largely sold through shared ownership. It’s through the latter scheme that you still have to pay rent to the housing association equivalent to 75% of your property value, and not due to the leasehold (where you will pay service charges, and ground rents, because you don’t own the “building” or the land the block sits on). Whilst I’m not familiar with owning a property myself (I’m still in the process of saving for a deposit), I am aware of the pitfalls of both leasehold properties, and the shared ownership schemes, and that is why I am refusing to consider either option when I do buy and actively encourage the people around me to do the same. That being said, we are all stuck in the position of low quality housing being built rapidly to try and meet the demand, but from seeing continual price increases on these poor quality new builds means that most millennials now do not have as much of a choice to avoid one, the other, or both schemes. I wish you all the success in the world from your first home, and really do appreciate you highlighting the issues we have in the UK from our backwards schemes which continue to leave the poor poorer, and the rich richer.
That’s right. Leasehold describes the type of tenure. All properties are usually sold leasehold or freehold. Freehold is where you own the building (or the part of the building you live in) plus the land it is built on. Leasehold is where you own the building (or part of the building you live in) but you do not own the ground it is built on. You lease the land from the landowner and pay them a fee based on the terms of the lease, for as long as lease states. At the end of the lease the landowner can either take back the land, or usually they agree to extend the term of the lease. Most leases are set to a maximum of 125 years. Most mortgages companies prefer leases to have more than 50 years remaining. As a freeholder you pay your mortgage and once paid up you don’t pay anymore the house is yours and so is the land. As a leaseholder you pay your mortgage and when it’s paid up you still have to pay the leasehold fee to the landowner. This is called ground rent and continues to be paid forever. Most leasehold properties are flats so you need to pay service charges as well for things like cleaning and lighting communal areas, caretaker, garden upkeep or lifts for example. Ground rent is usually a few hundred a year and increases modestly, services charges can run into thousands and increase significantly depending on the building you live in. As a leaseholder like a freeholder any significant major works will need to be paid for. So in a block of 10 flats if they want to replace windows or replace the roof the cost would be split 10 ways. Shared ownership is a different as it could be based on a freehold or leasehold basis but usually is the latter. Here you pay your mortgage on the % you own to your mortgage company and pay rent to the financier who owns the other 75%. You can “staircase” to buy more of the 75% you don’t own but this will be based on the value of the property at the time you want to buy more, not on the original purchase price. If it’s a leasehold agreement you will also have to pay ground rent and service charges, and an equal share of repair costs not covered by the service charge.
2 things my dad told me to avoid when looking for a house; leasehold and new-build. You landed with both. It won't be smooth sailing but good luck with your new home.
I am 3 months into my shared ownership and oh boy there are so many stories to tell. It's mostly been good but you get occasional issued. I had to install the smart thermostat myself as I don't trust anyone random and official installations cost a lot. BTW re your heat exchanger/air system - we were told that ours needs a service occasionally and a filter replacement. Apparently the filters are like £60 but a full service is £550. Get a quote don't just get those guys in, maybe you just need to replace filters and they will come for a full service.
When I bought my home in the states, I started taking off wallpaper in a 4 seasons room in the first week of owning only to find mold on the drywall. Welcome to home owning!
@@Lotsielots That really surprises me. I have seen it to some degree in almost every room in any house I have redecorated. They have tended to be older properties, Victorian or up to 1960s but not just in areas where you might expect to find damp spots such as around windows or on exterior walls. I suspect the wallpaper paste might have some bearing.
As a home owner myself, I’ll just say: it never f*cking ends. You will have to deal with a lifetime of repairs and a string of people as long as the earth who don’t want to deal with you/do the work. BUT this video made me smile so much Evan! It’s nice to commiserate and congrats on your new home! The little repairs suck but the freedom you feel for owning a home is always wonderful and accomplished.
I’m paying the same for my water (I live alone) as the flat below me with 4 people and a baby. I try to get a water meter installed-no go as I don’t have enough room in my tiny flat. I call Thames Water … their response … “but the 1842 deed shows your property as a 4 bedroom dwelling and we can’t change that” Welcome to the UK people. Welcome to the fucking UK.
They normally do, but from what I understand they didn't expect Evan to get the keys on the day he picked them up, so im not sure if the did the whole proper handover.
They kind of do but depending on when the property was constructed (not sold. Which is kinda BS really if nobody has lived there yet like mine) you get like a warranty/faults period which they'll address issues in but even then it's not long... Some issues are kind of seasonal too (pipes freezing/expanding issues etc).
Here in the states we usually have an inspector do a walk through and check everything before any papers are signed at closing. Usually then a buyer can make a counter offer asking for money to have items fixed or price lowered, or the owner will fix them pre move in. But I know real estate is very different in England.
yeah it sounds like the other people were under paying for their electricity, so now they actually have a debt - which is why their payments went up. Even 10 years ago in a tiny house we were paying £25-£30 month minimum. My 2 bed flat I just moved from, I was paying £35 a month when I was there solo (in-between housemates moving in).
Leasehold and shared ownership are different. In Scotland, we almost exclusively have freehold. Lease hold as I understand it means you 'own' the house but not the land its on. You lease the land for decades at a time from whomever owns the leasehold. Freehold is you own everything and shared ownership means that you partially own the property with the developer. For when you have to pay your own repair stuff past the settling in period - British gas have a very comprehensive insurance policy which covers drains and stuff. Do your research and read the fine print on home insurances. It's easy to get caught out.
Been following your whole flat buying journey and omg its just such a gruelling experience it seems. Even after you buy it there's the stuff you talk about that just appears suddenly, lol. Like cmon on give Evan a break :D I just feel sorry for any people who really want and need to live in London and have to go through such bullshit honestly..
that's why, buying old ex council properties is probably the best practical idea if they have a good community. your big problems are all solved by the council, and it's a proven sturdy building, or else the tory government would have demolished it already
I feel you. My first months in London, I didn't have a working boiler either. I was renting, we had the Covid pandemic going, the landlord pointed me out to the agency and the agency did nothing. Worst, I was migrating from Spain, and I swear that I've never seen a boiler like the one that I had before. And my English listening was terrible. So, long story short, my sister had to come in to help me, and it didn't work because of me.
I sometimes don't want to do simplest of tasks, how do you do all this tasks which are complex ? What exactly is your state of mind to overcome them... Because watching your process of getting loan approved and all that stuff literally made me go 😨
The UK government will never outlaw leasehold and have stated that they have no plans to review or do so. Why?... because of the 'huge' annual revenue that it generates for 'them' in taxes. There are national and international companies out there that their business model is solely built on, buying up freeholds from developers including the exclusive estate management rights from the developer, who has no problem selling it to them, has that finance goes towards their next planned development - and the cycle continues. I lived in spain for a number of years and know that Spain does not have such a thing has 'leasehold' properties. When you purchase a house or in that matter an apartment, you own it outright (the walls, floors ceiling and everything constructed within it). This has been an ongoing issue in the UK and many people are outraged buy it. Recently the UK government have now even gone as far has letting developers sell 'houses' with a lease!. Leasehold is a 'government scam' because they are the ones who have the ability yo outlaw it...but due to their own greed, choose not to.
Evan, you have been here for 9 or 10 years how can you say with a straight face that is a nice cup of tea, it looks like something out of an instant packet. Still its good to here about your goings on.
Hi Evan, I wonder if you may share how much the service charge is for your home. As what I've heard of from many of my friends who are also leaseholder, the service charge of theirs goes up almost 40% every year since 2020. That's insane and the government is not really doing anything about the regulations on this. It's like leaseholders bought their property to be exploited by the landlord via the unregulated service charge.
I'm in the process of buying a leasehold house up north and have been since November. I just know I'm going to do all the same things as you when I move in 😂
Don't feel bad.....I once worked with a guy who was very intelligent but not very practical. After he moved into a new home he could not get his heating to work and was stumped, so he called an engineer who came round. It took him less than 20 seconds to turn on the system 'on' switch which solved the problem.
I know this is wrong but it's nice to see that side of things, real life I guess you could say, the truth about what it's like to have to manage all this stuff. Having not long ago bought my own place I'm quickly realising the more stones you turn over the more problems you find. Such as wasps nests, which I found yesterday. And on bills, my electric and gas actually went down, but I have a feeling that is going to be brief. Based on usage from their smart meters they realise how much they were overcharging me originally.
Because you have stability. I was renting in London for 10 years, once I was given 2 months notice by a landlord a couple of days before I was going on a 4 week holiday to New Zealand. When I got back, there was nothing available, I went to view 25 rooms over those weeks and each and was priced out for every one. I then had to put my stuff in storage and stayed in a backpackers hostel until I could find a place...which was another 4 weeks later and I ended up paying 200 more than for my previous place. Additionally, having my own place means I can have a pet, and don't have to worry about not being able to keep them at the next place (which is why a lot of dogs and cats get rehomed). I had a place on shared ownership and staircased to 100%, there is no way I would be able to afford the rent on a flat like this on the private market, it would cost around 1200 a month plus bills. My mortgage is £400 less than what I was paying to rent a room, more than half of what I pay of that each month is an investment, and my property has increased in value by £25k since I first bought it. I was also able to negotiate with the housing association to buy the remaining shares at the original price, so that whole £25k is profit were I to sell at that price. It is a LOT better to be a leaseholder instead of a private renter, in my opinion.
@UCM16uEil1K-80X7bFJfhaww only 10% of shared ownership leaseholders even staircase at all. The share you have is an investment. They are usually brand new properties and don't require work for the first 5 years. So you buy let's say 30% and the share goes up in value, and what you've paid on the mortgage minus interest is an investment; money you would just be losing if you were renting. Plus, the remaining rent on the property is set at housing association prices, which is MUCH cheaper than private rent. I was paying 950 a month for a room in London, but my shared ownership flat, had I been paying 100% rent would only have been £608 a month plus bills. And for that I also get my own place, and for a couple that would be dirt cheap. So I disagree. It isn't a trap. It all depends on how you look at it. I knew people who bought 25% shared ownership in battersea before the redevelopment. They sold up and moved to Essex and made £50k on that share in 4 years.
This is shared ownership, not true leasehold. Leasehold normally (not always) applies to multi-occupancy buildings like a block of flats, where the individual flat owners own the flat, but not the land the building stands on. They have a lease (typically this would be up to 99 years) on the land and have to pay the land owner ground rent.
@@originalkk882 the lease is exactly the same whether it's shared ownership or not. I had shared ownership and now own my flat 100%, the lease hasn't changed, the only difference is that I no longer pay any rent.
Leasehold isn't a feature of shared ownership as such, rather it is part of our feudal property system. A leaseholder owns the right to live in the property for the duration of the lease after which the property reverts to the freeholder unless you extend the lease. All new build property in England is leasehold but you are generally offered the opportunity to buy the freehold once the development is complete and the builder moves on (flats excepted). ALWAYS DO THIS. If you buy a leasehold house on a development you will have to maintain the property at your expense and you may well face a bill for the mowing of verges and trimming of hedges that form part of the environment on the estate. With a leasehold flat you will always have a service charge which will generally cover cleaning and maintenance of the common areas, gardening and minor repairs. When major repairs are due you will face an additional bill. It's unlikely that you will be offered the chance to buy part of the freehold of a flat but it does happen. In that instance your fellow occupants would have to contract a company to maintain the building for you. Flat owners should always form a residents' association to negotiate collectively with the managing agent.
We've just had an offer accepted on a house, worrying we've offered too much as we were in a bidding war. Getting our engineer colleague to check it out but it looks like we're going to drop out. Buying a house right now is insanely difficult and everything is too expensive!
In Scotland a leasehold property is practically unheard of. I was quite shocked to discover the constraints that exist when considering the purchase of a property in England and it turns out to be leasehold.
OMG!!🤣🤣🤣 Literally full of shit. I'd be so mortified. At least you've got some good stories to go with all the problems. 🤞🤞Hopefully they're all sorted out soon.
When i purchased my house 3 years ago, the guy in hsbc said they where stopping in shared ownership mortgages as they expected them to be the next big miss selling scandel. I was buying free hold and my house out right as its in the north, but one thing i did not know was that i would end up with the free hold and the lesse hold sepratley as the lease hold has rights to dig up some shared land for pipes and gives me the right to cross the land.
Hello! Could you tell me what is the brand of your blue sofa? I am looking for a long time that shape, color and fabric and I am in love with yours! My new flat will be ready maybe about July so I need to know it realy bad! hx in advance!
5:34 Was £15 normal for a month or were you just throwing a number around coz damn that's cheap, where I live the price for electricity is $150 = £75 a month before heating or cooling is added and without any energy crisis
@@HannahRicketts i`m in the UK but a 2 bed house (mid terrace), in the last 6 years i`ve been here my monthly avg (so averaging summer/winter etc) hasn`t gone below £50 for gas and electirc and i`ve been on the cheapest fixed tarrifs available. so £15 is an absolute bargain!
@@BBThemes oh I only meant electric as that’s what is mentioned. Gas is about £35-55 a month. I found having them with different providers was way cheaper in the end
To be fair, I have 100% had to pay a call out fee (with additional charge for a bank holiday callout) for a plumber because I thought my heating was broken and turned out it just needed resetting so pleased to know it's enough of a problem they have a policy and I'm not just an idiot. I instead got him to give me a basic plumbing masterclass but still not the smartest £60 I spent!
Honestly getting concerned with all the problems you're getting cause I want to move out this year - is this what it's like all over the UK or is it just on London cause its freaking scary
I think the term "leasehold" is a bit confusing here as it took me a few sentences from Evan before I understood what he meant. He is using the term as in you are renting 75% of the property so you hold a lease for this portion. The more common use for leasehold when dealing with property is when the property does not come with the land that is underneath it, so while you may own the house on top of the land you still pay rent to the landowner. When you see "leasehold" on a property for sale listing at an agent this is generally what leasehold is referring to.
That what I thought it meant I don't even think you could do the same type of ownership Evan has done in the country I live in
Yeah single dwelling (house) you can get freehold, so you just pay mortgage. Leasehold is ground rent as well as mortgage. Avoid if you can!! No restrictions on how much you will have to pay. For multi occupant (flat/apartment) you will alway have to pay lease fees, or service charges (for USA folk) as the building will take fees for upkeep. What they have done in London is double lease. So in effect Evan is paying two landlords and paying a mortgage. I have no idea why anyone would opt for that? You can get way more and simpler agreements just outside and it takes the same amount of time to travel anywhere!!
@@yverose8355 That sucks
@@christineperez7562 yep, that's why I moved up north in UK. Literally quarter the house prices. Now we all work remotely have got job at Southern pay rates. My pension thanks the stupid UK housing market 😂😂
@@yverose8355 Leaseholds are common in the US in the mobile home industry (you own the mobile home, someone else owns the land it sits on), but we don't call it that. They were a really cheap way for people to live until the 2000's, when some businesses decided to buy up all the mobile home parks and jack up the rent on the land to the point that mobile home owners would abandon their homes to them because they couldn't afford to pay the rent any longer nor to move their home somewhere else (often times moving a mobile home will destroy it, anyway, because they're no longer made to be moved as they once were so the name is now a misnomer). Once a great idea to live cheaply now ruined by rich, greedy people.
I have went sale agreed on my own house and hope it all goes well with no hiccups. It was the first house I viewed and fell in love, near family etc. i was in a bidding war and the owner chose me, a first time buyer with a mortgage over a greedy landlord cash buyer who wanted to rent it out to students for extortionate prices. Shows there are good people in the world 🙏🏼🙏🏼🙏🏼
Update, got my keys and moved in👌🏼👌🏼👌🏼👌🏼👌🏼hassle free no issues whatsoever
Well done but it's I have gone, not I have went.
We recently met with a financial advisor, and while I know our situation (DINK, living and buying in Northern Ireland) might not apply to everyone reading/watching, we did get some great advice re co ownership. DO NOT FORGET, if you don't consistenly buy back portions of your property that the developer/council own, you will end up in the hole. Eg, you own your 50% (NI typical co ownership) and party B (gov/developer/whoever) owns the other 50%, and the house was originally 180k, minus deposit we'll say 160k, so you'll pay mortgage on 80k and pay rent on 80k. Ten years down the line say the house is now worth 250k - you are now paying the rent on 125k rather than 80k and you'll have a bigger windfall to make up. Yes your part is now worth 125k, but so is party B's. Our advisor said that the worst instance he saw was someone buying a house in the 90s on an early co ownership plan for 90k that's now worth 290k, and they had only started 'buying out' the council's share about 5 years ago. They simply forgot to renegotiate their share payments, which is apparently the biggest mistake people make with regards to co ownership.
Be careful with that though, some developers only let you buy 10% at a time and every time you buy you have to pay all the legal fees.
@@nicolelake5848 I know, finding the affordability balance between increasing your share and paying rent on theirs is also hard. We were advised not to use it unless it was a complete last resort.
In England, the rent portion is controlled and only increases by about 0.5% a year, it doesn't increase in line with the property value. But what you're saying would apply if you're buying more shares. You also have to be careful if you sell your shared ownership place and then move into another one. Firstly, this is a huge hassle, cause you have to sell yours before you would even qualify for the next, but secondly, you can be due to pay stamp duty if you ever go above 80% on that property, and that would be due on the whole share you're staircasing by. So if you go from 40% to 80% on that second property, you'd have to pay stamp duty on that whole 40% step.
Thats a good warning.
That's not a normal leasehold, that's a shared-ownership.
leasehold is you own the house but not the land.
That would be with apartments usually - a leasehold in housing would not actually mean you own the house, just a right to stay in the property
@@RB-747 This is correct. You can live in the property for the duration of the lease. You own the lease not the property although you still have to maintain it to the benefit of the freeholder.
It's the worst of all. Shared ownership in what is probably an obscenely overpriced poorly constructed leasehold apartment. Pray to God Evan that the cladding is OK.
You never own the land or the property with a lease, that’s why it’s called a lease not a freehold!
I have the impression that Evan never had a meeting and proper conversation with his solicitor/conveyancer, they would have explained precisely what leasehold is, the obligations and the disadvantages. Evan seems to conflate leasehold with shared ownership, the two are quite separate.
I love the way you find humour in all the normally tedious or stressful situations 😄
For what it's worth, it's always better to put the lid down before you flush so that the contents doesn't aerosol into the room, but always good to check it's completed once its finished flushing.
Sounds like we need a transparent lid.
@@kiradotee That’s a million dollar idea right there!
@@AaronMcHale I'm not gonna go to Dragon's Den with that idea 😂
Lol the word you are looking for is the “water shut-off valve” 😂
Evan's correct in that it's called a stop-cock in Britain.
@@speleokeir yes but he said he doesn't know the American word lol. We use shutoff valve
@@jillhobson6128 stop cock sounds mighty dirty to an American 😂
Loving the stories and so wish I could come over and give you tutorials. Bought my first home at 23 and learned so much (before UA-cam). I still do tons of DIY, but now for my mom. Get a good basic tool set, read and watch all you can, asks friends for help first (they are kind and most often free). Your design style is on point, just need to bring your DIY game to the same level.
Also might not hurt to just ask to have consultation with a plumber for nominal fee to learn where all the shut offs are and things you should learn to fix ans when you should call. In the old days, could change washers, no more. Make sure turn offs aren't stuck open by moving them every 6 mos-yr. Best of luck
Good advice form Lacey and Cheryl. UA-cam will prove to be very valuable. I use it for all sorts of things particularly where I need to see someone actually do the repair in a stepwise fashion. My other piece of advice -- talk to your friends about where they get their plumbing work done, electrical etc. And then, when you've found a really good plumber (or other repair person) you ask them 'oh hey, do you know a good appliance guy? or HVAC guy? or whatever'. That's how I've found good help for my rental properties (yeah, I'm a landlord) for anything from hot water heaters, appliances, plumbing, minor carpentry for steps, roofing, etc etc. There's a whole network out there just waiting for you to tap into it -- because, they're good honest business folks that get business 'by word of mouth', not advertising.
Ditto on all the above comments. Unless you remove a load bearing wall by mistake you'll be fine especially now you know where the water shut off is now. UA-cam is a homeowners best friend
Hang in there! Once you’ve got through the snag list you’ll be fine!!! I’m in an old building as a leaseholder… a 50 year old lift, a central boiler that only gives us heating Oct- March. Just remember to have full building insurance, even though your lease will say the building is covered (bricks and pipes only!). Also ask your water provider how they are calculating your bill. I didn’t do that for 2 years and got charged double I used… best of luck xxx
Often these days, plumbers will put a small in-line stop valve in pipework to (for example) toilets. These have a flat screw-type head in the valve, which you can twist to turn on and off with a flat bladed screw driver, rather than having to turn off all the water with the main stopcock. These are convenient, but can tend to leak as they get old, as we just discovered.
Came here to say this. Should be able to just turn a screw on the input pipe. Can you lift to top off the cistern? Might just be flush unit is out of alignment. I've sorted mine with zero plumbing experience.
Any valves including the stop cock should be turned a quarter of a turn and back every three months otherwise the one time you need it you can be guaranteed it will leak, they all do.
The grim reality is modern “luxury” apartments are poor quality, due to a combination of deregulation and greed.
The ventilation system 😂😂😂😂 had a good laugh. Been a first time homeowner is hard
I love how shut off was just no where near your realm of thinking😂
Great video, becoming a homeowner is definitely a process.
Wishing you a happy Sunday and safe travels!
Leasehold is linked to the land so you could be a 100% owner and still be under a lease if you don't own the land it is built on. But I totally understand the woes of shared ownership which is what you meant. Have a good read through your leasehold documents so you know your rights.
This! Leaseholds can actually be alright, they all get a bad rep because some are atrocious.
@@nicolelake5848 Leasehold comes from our feudal past. A lot are/were owned by the church. It also makes sense in a block of flats where you wouldn't want a resident to strip their flat for salvage & let it stand derelict. It'd be much harder to stop them if it was freehold.
@@ethelmini Exactly, I'm in a small block that was owned by the church. If we wanted to buy the freehold we could easily for less than £5,000 or take over management. But it's all good so no point now.
You’re doing fine, no worries. I bought my first home on my own - post divorce - in my mid fifties in the US and was still amazed at the things that came up. Homes are money pits on the one hand, but also an investment on the other hand. You do seem a lot more relaxed now. And it looks like a comfortable home reflective of your taste and personality. Great job for only a month and a half!
There are particular nuances woth UK leaseholds that are astronomically worse than normal freehold ownership/ mortgages
Honestly, it might take me until I'm 50 to gather enough money to actually buy a flat where I live, but after I've seen everything you've been through, that is what I'm doing.
If it’s going to take you until 50 to pour chase a flat I would recommend saving a deposit and relocating to north of England
You can hire a specialist that will go round the new build and do a "snag check", then will make a list for the developer to rectify, as your contract should state what condition the property will be in. You could do the list yourself after getting the keys to the property, checking all the plugs, data connections, lights, heating, water etc, as developer's only interest is your money in their bank account.
Hello fellow new homeowner in a flat! Mine isn’t a new build so don’t have quite the same teething issues, but I am a first time homeowner too and boy is the learning curve STEEP!
Damn, this shared ownership thing sounds really confusing. Are there actually any upsides to this? Just seems like it combines the worst aspects of renting AND owning a place.
You have a home is the upside. As Evan said it's the only way he could get one in London. It's that balance of having a place or just renting a place. Although if you only have 25% of it the remaining 75% can bit you on the ass with increases as well. It's a good starting point if nothing else.
I agree to be honest that it sounds like the worst of both but the main upside is that you can’t be kicked out at the will of the landlord and given 2 months to find somewhere else and you can pretty much do what you want when it comes to decorating and having pets. So it’s the security of that. (Although you can be evicted for not paying rent.) And then the other upside I guess is that you can eventually buy the rest of the property share and you’re already on the property ladder.
Personally I would rather rent until I could afford to get somewhere with just a mortgage and 10% deposit but that’s easy for me to say in the north east. London sounds tricky
The only positive is that you get a place to live with a bit more stability. But it's essentially a scheme to ensure developers can see a return on their investment and squeeze as much profit out of property as possible.
Thanks for all the informative answers, very interesting!
@@HayleyC8D Just an FYI, some shared ownerships still have rules against pets. Usually when it relates to a leasehold property such as a flat. They’ll use the excuse that the shared areas will be contaminated with pet hair and others in the building have allergies. So you have to be careful and double check.
I work in leasehold and honestly I would never buy a leasehold property 😬 you don't just get charged for repairs, it's also general maintenance e.g. cleaning, ground maintenance but also a management fee for the company usually. I would 100% recommend that you try to get compensation for the month without heating!! Put in a formal complaint and keep escalating until they give it to you.
Your business I guess, but why on Earth would anybody buy a property in London - that you barely even own...(25%?!)😶
Just don't see the point when there are quite a few decent, more affordable cities in the country; some of them with great rail links to London. Most people I know here who have the luxury to work remotely opt for such places, instead of spending their total wages on impossible rents/mortgages that even their grandchildren will never pay off.
So unless you absolutely can't help but be at the mercy of London's stomach-turning housing market (or are an undercover Bruce Wayne), I'd really discourage anybody from taking the same route you have; aside from the crazy prices & increasing public transport fares, etc - it's also rapidly becoming one of Europe's most unsafe & unliveable capital cities. I've spoken with very few Londoners who boasted about having a great quality of life/living conditions whilst there; most of them are looking at ways to transform their jobs into a fully remote ones, so they can keep their salaries, but move just about anywhere else as quickly as possible. As a UA-camr, you already have this, so again, your choice to settle down there is a bit baffling to me.
Obviously, it's exciting and has a lot to offer, but honestly, you don't need to move to London in order to enjoy its good bits.🇬🇧
(To all the Karens getting ready to @ me: horses for courses; just my opinion.)🥰
Edit: Also, this is from someone who loves day trips to London & the city in general, btw - but would never move there: just not worth it.
I have to agree, unless you are wealthy living in London is going to probably mean living in a small flat in a crappy area and paying through the nose for the "privilege".
There are far nicer cities to live.
Evan bud, I don't know what you're using, but I like how crisp your videos have been. It's nice, dude, for real.
Your home is looking great, Evan!
Oh god, not another "Evan maniacally waves a full glass of tea around"! :D
Oh bless you! I hope this week is better!!!! The joys of owning a home!!
I just wanted to say how much I love hearing your accents switch! You hit "coffee" hard with the east coast accent, caught me off guard!
Evan you are so wholesome thanks for taking us along on you're journey
Leasehold and shared ownership are very different from each other. Nearly every flat in the country will be leasehold (or share of freehold) as you don't normally own the whole building (stairwells, entry ways, etc), but you own 100% of your flat.
If it's leasehold you don't own the building, you simply have a contract to live in it for x number of years (length of lease). Once the lease runs out you no longer have any right to live in the building. You can extend the lease length for a fee.
With leasehold you own NOTHING. It's merely another type of rent, where you ALSO pay a mortgage, so you get screwed twice over, instead of once over.
Yes, so many people here still think they own something under a leasehold (or they just pretend to be able to ask the prices that don't make any sense for a literally rented accommodation). Also a share of freehold has nothing to do with the freehold ownership either, as it's just another type of leasehold.
Invest in a good ball of string - when my flush partially died I extended its life by a few weeks by tying a piece of string to the cistern valve and manually raising it to shut it off. I was quite proud of my Macgyvering!
This whole cost of energy crisis has made me unbelievably infuriated with the government. I'm a student and my max loan amount has stayed the same (about 4k), but my rent has increased by £500 a year, and obviously groceries are pricier too. They said the £500 increase (per person in the flat) was because of energy bills, but when asked they admitted that my energy cap before I would have to pay out of pocket has only gone up by £25. I asked why and they said that I 'didn't need' any more. Eventually they admitted that they were using energy bills as an excuse to hike my rent up to match the 'competitive prices' on the market. This is devastating for me, considering my loan is the same but I'm seriously out of pocket on living costs. My loan is already less than my rent alone, so I'm forced to find income from other sources whilst being expected by the uni to put in 40 hours of work a week which leaves only a small amount of time for work. Upsettingly it doesn't even cross the government's minds to increase the max loan amount, but they will shamelessly allow companies to charge more and more for basic things like rent and energy.
ok, so i`ll apologise for how this comes across as i probably won`t word this right.
you are infuriated with the government because where you rent your rent has increased because of the energy thing, but not really its because the landlord is milking the situation.
while its a shambles from the government (although not sure how they can fix the situation when its supply outside the UK thats gone up in price), it`s not their fault your landlord is by all accounts taking advantage of the situation. if i was in your shoes i`d be infuriated with your landlord as they are the one taking all your money.
i`m not trying to defend anything of course, just saying the target of your infuriation should be your landlord who is being scummy.
As for letting companies charge more, again, thats the problem with our supplies coming from abroad, its not something they alone can influence. if it was energy from a UK source then i`d fully agree with you btw, just its not so they can`t control like what your or i would want i guess.
@@BBThemes that’s a very fair point. my landlord is definitely to blame. but at the same time, the cost of living crisis is nationwide and the government should step up and increase the amount of money I can loan from them as a student. while my rent increasing might be a me problem, everyone’s energy bills and living costs have increased but student loans never increase to reflect this.
I moved into my new house a week ago and Friday night I had to call the gas board out because I could smell a leak, he said it was quite a big leak at the back of the oven, so now all of our pipes need to be rerouted and that’s going to cost a fortune 🤦♀️ moving is a pain because you find so much wrong 😅
Great video, the change from renting to owning is a massive learning curve !!
Hey Evan, as someone who moved to the US 2 years ago and now moving back to England. I cannot say how much I appreciate all your videos. From the cultural differences. To the sheer honesty in how living life is. All the issues and developments have been so interesting to see unfold. So glad you've found a home in England. Such a brave and bold move. Hope you settle in nicely, especially in London!
Nice colours in bedroom 👌🏻
Great video. So glad you have finally moved in and getting settled. Love the green bed spread!
You can turn the water off in the cistern so you can still use the water in the rest of the flat, it has happened to me a few times.
I'd say run far away from Leasehold/Shared Ownership properties when you can! Freehold is what you want! As for "management" companies, one needs to be polite, but very stern with them I have found! Good luck sorting everything out!
I knew I shouldn´t have clicked in this video. I'm building a house alone (as in I contracted someone to do it, but just myself no partner, family member, no one else involved). The amount of work, and sh*t I'm going thought because the architects, the contractors, the utilities companies JUST DO NOT COMUNICATE PROPERLY what they need to someone that is doing this form the first time, is astonishing. I've been trying to have running water and electricity since summer... I'm in an infinite loop of e-mails and calls, still no clear answers... And now Evan says that I have to be prepared to things not working once I'm actually living there.... No ma'am no sir. I reject. At first this content was relatable, now I just want to cry.
this leasehold stuff sounds like a con. it's like you pay to own part of a house, meanwhile the homeowner or land developer profits off of you and you fund repairs and stuff like that. It's common in tropical tourist areas like Belize (where my mom is from) and Hawaii
In the United state, when you rent, if something breaks the people who own the place are the one that have to pay for house/apt repairs
@@danielareyes199 yes. I'm american lol. That only counts for property broken that is nto of your own cause, though- which is where the hard part comes in- proving it is not your fault
@@williamcarter1993 err the proof should be the other way round.
Flat looks great Evan, I love earring your stories because they are so relatable. When these things happen (and they happen to everyone) we tend to feel so beleaguered but it is important to remember that they happen to everybody, I watched your video thinking, god I hate moving into a new apartment........
My place is years old and well built, but I do need to consider a new bathroom and I am dreading it. Dreading it. I feel your pain! Thank you for the video! Have an amazing week!
Shared ownership with a leasehold is something I would never touch unless you have a 999 year lease.
I had a shared ownership flat and the whole thing is awful. Your are the home owner so everything that goes wrong is for you to sort out, but you still have rent and to deal with the landlord/“management company” who are always putting the rent and service charge up but the upkeep of communal areas deteriorates rapidly as soon as all flats are “sold”. Not just my experience my husband, when we met, also had a shared ownership flat managed by a different company, same problems. My advice is staircase as quickly as possible and get out to a freehold property, in London that might require a Faustian deal but rather that than a shared ownership.
I'll toss my 2 cents into this ... I bought the house I'd been renting for several years. Best purchase ever - I already know all the possible issues, and I didn't have to move anywhere.
you're videos bring me so much joy :)
If you are on a water meter tell the company there was a problem and how many days they should take it into account when they bill.
For anyone wondering (I work with property ownership), in England and Wales there are three main types of property ownership: Freehold, leasehold and commonhold
-Freehold is essentially owning the property and land with full, indefinite rights, although sometimes the mines and minerals might be excluded, as well as certain floor levels (a flying freehold).
-Leasehold is there you buy the right to hold the land for say 125 or 999 years, and after that ownership reverts to the freeholder (although you can statutorily extend it which removes any ground rent and adds 90 or so years on to the lease)
-Commonhold isn't often seen, but was seen as a way to replace leasehold and introduced by New Labour. Essentially, you own the strata of your flat outright as if it were freehold (so like a freehold, not a leasehold) and jointly own the common areas with the other commonholders.
What Evan has is a shared ownership flat, which is where he holds a leasehold for a certain percentage of equitable ownership in the property (25%) which is what he buys, and the remaining 75% of the equitable ownership is held by, commonly, a housing association. It is possible to staircase which is buying more shares of the property, although that can make selling difficult later on. Flats and sometimes houses are otherwise normally 100% leasehold.
Evan is the sole legal owner of the property, just that the equity in it is split with another party and he pays rent to that party in addition to his mortgage payments.
I note your and others qualification that *essentially* freehold is *similar* to owning the land. Basically, all land in England and Wales (maybe Scotland and Northern Ireland?) belongs to 'The Crown'. When you purchase a 'Freehold' you do not *own* the land, you merely have the right to use the land for permitted uses, usually only permission to keep approved buildings on the site and cultivate the 'topsoil'.
Whilst I appreciate the anecdotes, it’s fun to hear the hilarity of owning your first home, I was a little deterred by the confusion that you made within the first few minutes of the video between leasehold and shared ownership.
They are two very distinct and separate things which are often confused, because all flats are leasehold, and most new builds are largely sold through shared ownership. It’s through the latter scheme that you still have to pay rent to the housing association equivalent to 75% of your property value, and not due to the leasehold (where you will pay service charges, and ground rents, because you don’t own the “building” or the land the block sits on).
Whilst I’m not familiar with owning a property myself (I’m still in the process of saving for a deposit), I am aware of the pitfalls of both leasehold properties, and the shared ownership schemes, and that is why I am refusing to consider either option when I do buy and actively encourage the people around me to do the same.
That being said, we are all stuck in the position of low quality housing being built rapidly to try and meet the demand, but from seeing continual price increases on these poor quality new builds means that most millennials now do not have as much of a choice to avoid one, the other, or both schemes.
I wish you all the success in the world from your first home, and really do appreciate you highlighting the issues we have in the UK from our backwards schemes which continue to leave the poor poorer, and the rich richer.
You know you're British when you have a cup of tea, just in case. 😅
3:56 I RELATE TO THIS SO MUCH Both toilets in my house run constantly unless you flush them a specific way and that noise drives me insane!
Oh Evan 😔 as soon as I heard leasehold and "new developer" I had to pause the video. I wish I could give you a hug; I too, have struggled with both xx
That’s right.
Leasehold describes the type of tenure. All properties are usually sold leasehold or freehold.
Freehold is where you own the building (or the part of the building you live in) plus the land it is built on.
Leasehold is where you own the building (or part of the building you live in) but you do not own the ground it is built on. You lease the land from the landowner and pay them a fee based on the terms of the lease, for as long as lease states. At the end of the lease the landowner can either take back the land, or usually they agree to extend the term of the lease. Most leases are set to a maximum of 125 years. Most mortgages companies prefer leases to have more than 50 years remaining.
As a freeholder you pay your mortgage and once paid up you don’t pay anymore the house is yours and so is the land.
As a leaseholder you pay your mortgage and when it’s paid up you still have to pay the leasehold fee to the landowner. This is called ground rent and continues to be paid forever. Most leasehold properties are flats so you need to pay service charges as well for things like cleaning and lighting communal areas, caretaker, garden upkeep or lifts for example.
Ground rent is usually a few hundred a year and increases modestly, services charges can run into thousands and increase significantly depending on the building you live in.
As a leaseholder like a freeholder any significant major works will need to be paid for. So in a block of 10 flats if they want to replace windows or replace the roof the cost would be split 10 ways.
Shared ownership is a different as it could be based on a freehold or leasehold basis but usually is the latter. Here you pay your mortgage on the % you own to your mortgage company and pay rent to the financier who owns the other 75%. You can “staircase” to buy more of the 75% you don’t own but this will be based on the value of the property at the time you want to buy more, not on the original purchase price. If it’s a leasehold agreement you will also have to pay ground rent and service charges, and an equal share of repair costs not covered by the service charge.
2 things my dad told me to avoid when looking for a house; leasehold and new-build. You landed with both. It won't be smooth sailing but good luck with your new home.
Why?
That heating wrench problem was the exact same issue I had in a new build flat too
I am 3 months into my shared ownership and oh boy there are so many stories to tell. It's mostly been good but you get occasional issued. I had to install the smart thermostat myself as I don't trust anyone random and official installations cost a lot. BTW re your heat exchanger/air system - we were told that ours needs a service occasionally and a filter replacement. Apparently the filters are like £60 but a full service is £550. Get a quote don't just get those guys in, maybe you just need to replace filters and they will come for a full service.
Lesser humans would get really depressed about this, but to find humour in this ....still feel for you xx
Just a thought, the window behind you does not seem to have curtains. It's amazing how thick, lined curtains keep the heat in when it's cold outside 😁
You don’t normally close curtains during the day and modern double glazing uses low emissivity glass that reflects heat back into the room
@@john_smith1471 I think he mentioned in another video he wants to put up some blinds at some point.
Use an extendable rod (like a shower curtain rail) at the window and hang a bedsheet over it until you can put up curtains.
When I bought my home in the states, I started taking off wallpaper in a 4 seasons room in the first week of owning only to find mold on the drywall. Welcome to home owning!
In the UK it would be normal to find mould under the wallpaper in most properties. We don't worry about it like you guys do.
I'm a native English person and have never heard of or seen mould under wall paper. And I have removed a fair amount of it over the years.
@@Lotsielots That really surprises me. I have seen it to some degree in almost every room in any house I have redecorated. They have tended to be older properties, Victorian or up to 1960s but not just in areas where you might expect to find damp spots such as around windows or on exterior walls. I suspect the wallpaper paste might have some bearing.
As a home owner myself, I’ll just say: it never f*cking ends. You will have to deal with a lifetime of repairs and a string of people as long as the earth who don’t want to deal with you/do the work. BUT this video made me smile so much Evan! It’s nice to commiserate and congrats on your new home! The little repairs suck but the freedom you feel for owning a home is always wonderful and accomplished.
Just perusing your older stuff I've never in my life heard of a floater as a "return to sender" 😄
I’m paying the same for my water (I live alone) as the flat below me with 4 people and a baby. I try to get a water meter installed-no go as I don’t have enough room in my tiny flat. I call Thames Water … their response … “but the 1842 deed shows your property as a 4 bedroom dwelling and we can’t change that” Welcome to the UK people. Welcome to the fucking UK.
Do they not do home inspections before you purchase? So you know what you are getting yourself in to? Sounds like a big gamble.
They normally do, but from what I understand they didn't expect Evan to get the keys on the day he picked them up, so im not sure if the did the whole proper handover.
They kind of do but depending on when the property was constructed (not sold. Which is kinda BS really if nobody has lived there yet like mine) you get like a warranty/faults period which they'll address issues in but even then it's not long... Some issues are kind of seasonal too (pipes freezing/expanding issues etc).
Here in the states we usually have an inspector do a walk through and check everything before any papers are signed at closing. Usually then a buyer can make a counter offer asking for money to have items fixed or price lowered, or the owner will fix them pre move in. But I know real estate is very different in England.
£15 a month? Good grief. That must've been really great. Here in the States I'm paying at LEAST $160, per month, all year round.
yeah it sounds like the other people were under paying for their electricity, so now they actually have a debt - which is why their payments went up. Even 10 years ago in a tiny house we were paying £25-£30 month minimum. My 2 bed flat I just moved from, I was paying £35 a month when I was there solo (in-between housemates moving in).
Shared ownership and leasehold are completely different! And not all leaseholds are equal, you get terrible leases and great ones.
Leasehold and shared ownership are different. In Scotland, we almost exclusively have freehold. Lease hold as I understand it means you 'own' the house but not the land its on. You lease the land for decades at a time from whomever owns the leasehold. Freehold is you own everything and shared ownership means that you partially own the property with the developer.
For when you have to pay your own repair stuff past the settling in period - British gas have a very comprehensive insurance policy which covers drains and stuff. Do your research and read the fine print on home insurances. It's easy to get caught out.
Been following your whole flat buying journey and omg its just such a gruelling experience it seems. Even after you buy it there's the stuff you talk about that just appears suddenly, lol. Like cmon on give Evan a break :D I just feel sorry for any people who really want and need to live in London and have to go through such bullshit honestly..
I laughed listening to your home exploits Evan. Hun, you have lived a very sheltered life lol
that's why, buying old ex council properties is probably the best practical idea if they have a good community. your big problems are all solved by the council, and it's a proven sturdy building, or else the tory government would have demolished it already
How many of those are covered in flammable cladding though
I feel you. My first months in London, I didn't have a working boiler either. I was renting, we had the Covid pandemic going, the landlord pointed me out to the agency and the agency did nothing.
Worst, I was migrating from Spain, and I swear that I've never seen a boiler like the one that I had before. And my English listening was terrible. So, long story short, my sister had to come in to help me, and it didn't work because of me.
For the record, I don't advise you to buy a leasehold, nor a shared ownership. If London is a problem, then consider moving out of London.
I sometimes don't want to do simplest of tasks, how do you do all this tasks which are complex ? What exactly is your state of mind to overcome them...
Because watching your process of getting loan approved and all that stuff literally made me go 😨
The UK government will never outlaw leasehold and have stated that they have no plans to review or do so. Why?... because of the 'huge' annual revenue that it generates for 'them' in taxes.
There are national and international companies out there that their business model is solely built on, buying up freeholds from developers including the exclusive estate management rights from the developer, who has no problem selling it to them, has that finance goes towards their next planned development - and the cycle continues.
I lived in spain for a number of years and know that Spain does not have such a thing has 'leasehold' properties. When you purchase a house or in that matter an apartment, you own it outright (the walls, floors ceiling and everything constructed within it).
This has been an ongoing issue in the UK and many people are outraged buy it. Recently the UK government have now even gone as far has letting developers sell 'houses' with a lease!. Leasehold is a 'government scam' because they are the ones who have the ability yo outlaw it...but due to their own greed, choose not to.
Evan, you have been here for 9 or 10 years how can you say with a straight face that is a nice cup of tea, it looks like something out of an instant packet. Still its good to here about your goings on.
In the Midwest, we call it water valve.
Just wait until you try to sell it. Absolute nightmare, worst process I've ever experienced. Going through it right now
Hi Evan, I wonder if you may share how much the service charge is for your home. As what I've heard of from many of my friends who are also leaseholder, the service charge of theirs goes up almost 40% every year since 2020. That's insane and the government is not really doing anything about the regulations on this. It's like leaseholders bought their property to be exploited by the landlord via the unregulated service charge.
Yes that’s pretty accurate
I'm in the process of buying a leasehold house up north and have been since November. I just know I'm going to do all the same things as you when I move in 😂
Don't feel bad.....I once worked with a guy who was very intelligent but not very practical. After he moved into a new home he could not get his heating to work and was stumped, so he called an engineer who came round. It took him less than 20 seconds to turn on the system 'on' switch which solved the problem.
I know this is wrong but it's nice to see that side of things, real life I guess you could say, the truth about what it's like to have to manage all this stuff. Having not long ago bought my own place I'm quickly realising the more stones you turn over the more problems you find. Such as wasps nests, which I found yesterday. And on bills, my electric and gas actually went down, but I have a feeling that is going to be brief. Based on usage from their smart meters they realise how much they were overcharging me originally.
What is the advantage of a leasehold property? It sounds like there are none, but why would you become a leasehold property owner over just renting?
Because you have stability. I was renting in London for 10 years, once I was given 2 months notice by a landlord a couple of days before I was going on a 4 week holiday to New Zealand. When I got back, there was nothing available, I went to view 25 rooms over those weeks and each and was priced out for every one. I then had to put my stuff in storage and stayed in a backpackers hostel until I could find a place...which was another 4 weeks later and I ended up paying 200 more than for my previous place.
Additionally, having my own place means I can have a pet, and don't have to worry about not being able to keep them at the next place (which is why a lot of dogs and cats get rehomed).
I had a place on shared ownership and staircased to 100%, there is no way I would be able to afford the rent on a flat like this on the private market, it would cost around 1200 a month plus bills. My mortgage is £400 less than what I was paying to rent a room, more than half of what I pay of that each month is an investment, and my property has increased in value by £25k since I first bought it. I was also able to negotiate with the housing association to buy the remaining shares at the original price, so that whole £25k is profit were I to sell at that price.
It is a LOT better to be a leaseholder instead of a private renter, in my opinion.
@UCM16uEil1K-80X7bFJfhaww only 10% of shared ownership leaseholders even staircase at all. The share you have is an investment. They are usually brand new properties and don't require work for the first 5 years. So you buy let's say 30% and the share goes up in value, and what you've paid on the mortgage minus interest is an investment; money you would just be losing if you were renting. Plus, the remaining rent on the property is set at housing association prices, which is MUCH cheaper than private rent. I was paying 950 a month for a room in London, but my shared ownership flat, had I been paying 100% rent would only have been £608 a month plus bills. And for that I also get my own place, and for a couple that would be dirt cheap.
So I disagree. It isn't a trap. It all depends on how you look at it. I knew people who bought 25% shared ownership in battersea before the redevelopment. They sold up and moved to Essex and made £50k on that share in 4 years.
@@jenjones90 Thanks for the clarity!
This is shared ownership, not true leasehold. Leasehold normally (not always) applies to multi-occupancy buildings like a block of flats, where the individual flat owners own the flat, but not the land the building stands on. They have a lease (typically this would be up to 99 years) on the land and have to pay the land owner ground rent.
@@originalkk882 the lease is exactly the same whether it's shared ownership or not. I had shared ownership and now own my flat 100%, the lease hasn't changed, the only difference is that I no longer pay any rent.
Leasehold isn't a feature of shared ownership as such, rather it is part of our feudal property system. A leaseholder owns the right to live in the property for the duration of the lease after which the property reverts to the freeholder unless you extend the lease. All new build property in England is leasehold but you are generally offered the opportunity to buy the freehold once the development is complete and the builder moves on (flats excepted). ALWAYS DO THIS. If you buy a leasehold house on a development you will have to maintain the property at your expense and you may well face a bill for the mowing of verges and trimming of hedges that form part of the environment on the estate. With a leasehold flat you will always have a service charge which will generally cover cleaning and maintenance of the common areas, gardening and minor repairs. When major repairs are due you will face an additional bill. It's unlikely that you will be offered the chance to buy part of the freehold of a flat but it does happen. In that instance your fellow occupants would have to contract a company to maintain the building for you. Flat owners should always form a residents' association to negotiate collectively with the managing agent.
So much content - nicely lit bedroom-oh shared ownership
haha its like renting but with higher cost and less service :D nice concept
I always take ‘new builds’ as an automatic assumption that it is of poor quality.
Dude.............never buy a shared ownership property. It's a scam it's not worth the costs you are about to endure.
It's common in Hawaii. The price of the apartment goes down as one gets closer to the end of the lease.
We've just had an offer accepted on a house, worrying we've offered too much as we were in a bidding war. Getting our engineer colleague to check it out but it looks like we're going to drop out. Buying a house right now is insanely difficult and everything is too expensive!
In Scotland a leasehold property is practically unheard of. I was quite shocked to discover the constraints that exist when considering the purchase of a property in England and it turns out to be leasehold.
There are hardly any leasehold properties in England. Mainly houses, the vast majority are freehold.
OMG!!🤣🤣🤣 Literally full of shit. I'd be so mortified.
At least you've got some good stories to go with all the problems. 🤞🤞Hopefully they're all sorted out soon.
When i purchased my house 3 years ago, the guy in hsbc said they where stopping in shared ownership mortgages as they expected them to be the next big miss selling scandel.
I was buying free hold and my house out right as its in the north, but one thing i did not know was that i would end up with the free hold and the lesse hold sepratley as the lease hold has rights to dig up some shared land for pipes and gives me the right to cross the land.
Hello! Could you tell me what is the brand of your blue sofa? I am looking for a long time that shape, color and fabric and I am in love with yours! My new flat will be ready maybe about July so I need to know it realy bad! hx in advance!
5:34 Was £15 normal for a month or were you just throwing a number around coz damn that's cheap, where I live the price for electricity is $150 = £75 a month before heating or cooling is added and without any energy crisis
A 2 bed flat in London is about £20 a month in electricity for standard without a/c. But UK bills are very different to the US!
@@HannahRicketts i`m in the UK but a 2 bed house (mid terrace), in the last 6 years i`ve been here my monthly avg (so averaging summer/winter etc) hasn`t gone below £50 for gas and electirc and i`ve been on the cheapest fixed tarrifs available. so £15 is an absolute bargain!
@@BBThemes oh I only meant electric as that’s what is mentioned. Gas is about £35-55 a month. I found having them with different providers was way cheaper in the end
Poor you. I feel your pain..
Thanks for making me chuckle several times, Evan. :-D Also congrats on improving your thumbnail/title game. Hope it works and people click.
Your flat looks nice, you’ve got good taste.
To be fair, I have 100% had to pay a call out fee (with additional charge for a bank holiday callout) for a plumber because I thought my heating was broken and turned out it just needed resetting so pleased to know it's enough of a problem they have a policy and I'm not just an idiot. I instead got him to give me a basic plumbing masterclass but still not the smartest £60 I spent!
Honestly getting concerned with all the problems you're getting cause I want to move out this year - is this what it's like all over the UK or is it just on London cause its freaking scary
honestly after doing my law degree in the UK I have zero interest in buying property there lol it's too bloody complicated and expensive