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02-06-2021, 01:21 AM
11

Re: sons house buying problems

Originally Posted by Dextrous63 ->
Not really sure, but I beleive that the original developers will have set up a separate company for the maintenance work. It may well be the case that your son can request that he becomes a shareholder in that company and thus be eligible to see the accounts annually.

I'm going through a similar situation with a flat I own, in which the developer did the same thing. When he decided to retire and pass the maintenance onto flat owners, he was supposed to put us down as shareholders and also get a couple of named directors (one of whom is the bloke who is going to run the company and sort our actual maintenance, and the other being a fellow flat owner (which will mean that all other owners will get to have a say since she'll have access to accounts as well as make sure decisions are run by us)). The original developer is being a bit of an arse and delaying things, which is a bit of a nuisance since it's holding up the sale of one of the flats, but we're getting there.

Might be worth your son asking about this.

Edit - for the other flat that I own, I am a director of the management company (which has bugger all to do with the developer). I do get annual reports and advised/asked about potential expenditures above a certain amount. I, and my fellow director (who owns and lives in a flat) have managed to make some changes which have made some small savings, partly down to the way that the buildings insurance was set out and what proportion flat owners ought to pay compared to the shops on the ground level. Not much, but at least we get to see what's going on.
My son owns a flat and the insurance rates for it have gone up about @100+ % the reason / excuse .
Grenfell tower s

This is ridiculous it’s a brick built unclad block .
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02-06-2021, 01:35 AM
12

Re: sons house buying problems

Originally Posted by Muddy ->
My son owns a flat and the insurance rates for it have gone up about @100+ % the reason / excuse .
Grenfell tower s

This is ridiculous it’s a brick built unclad block .
That is appalling.

Apart from anything else, it may well have an additional adverse effect on the value of the property. Buyers will have to take into account running costs, and this will affect the size of mortgage that they'd be willing to take out, and thus potentially reduce the number of viable buyers, which might entice owners to drop their asking prices.

This was one of the things that I and my fellow director brought up when the share of insurance was being negotiated. It contributed towards a reduction in the proposed increase for flat owners as well as a slight reduction in the fee that the management company would take for their own running costs.

(There were other aspects during our discussion, including relative floorspace and the fact that shops "owned" more parking slots and were thus producing more litter/wear and tear and hence maintenance costs for the upkeep)
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02-06-2021, 01:43 AM
13

Re: sons house buying problems

The first flat I made reference to, which we are working towards becoming shareholders in the maintenance company, has already enabled us to use cheaper contractors and sack the one that the developer used on the basis that they were bleeding useless.

RS - this is one of the examples which indicate why it is beneficial for your son to look into becoming a shareholder. In my case, we have a whatsapp group in which all owners partake and make democratic decisions.
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02-06-2021, 05:44 AM
14

Re: sons house buying problems

Five to six months is not unusual.
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02-06-2021, 06:16 AM
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Re: sons house buying problems

I would never buy a property with unregulated and uncapped maintenance fees... thats just a cash cow for developers. Stay clear unless the management is handed over to the residents.
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02-06-2021, 09:12 AM
16

Re: sons house buying problems

Originally Posted by summer ->
I would never buy a property with unregulated and uncapped maintenance fees... thats just a cash cow for developers. Stay clear unless the management is handed over to the residents.
I agree. I would never buy Leasehold.
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02-06-2021, 07:21 PM
17

Re: sons house buying problems

Originally Posted by Longdogs ->
I agree. I would never buy Leasehold.
What's a leasehold? Is that when you buy a house for 99 years or something, and you never really own it?
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02-06-2021, 09:59 PM
18

Re: sons house buying problems

Originally Posted by realspeed ->
It so far has taken 5 months to buy a house yet he sold his other one in weeks. It is all to do with useless solicitors on both sides and thrown in the mix was the original building firm. That firm in the sale contract demand they give permission as well for the purchased every time it is bought or sold. Something to do with them maintaining the surrounding area and the house owner charged £500 a year. Bloody cheek i call it the house is freehold. anyway at long last it looks as if contract exchange this friday and completion on the 11 June when he can eventually get the keys
I would get another solicitor to look at this as it looks to me as though it could fall into "Unfair Terms".
Certainly if any of the terms in the contract are not fulfilled, that presents a case for the contract to be denied and broken.
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03-06-2021, 08:58 AM
19

Re: sons house buying problems

Originally Posted by Longdogs ->
I agree. I would never buy Leasehold.
Problem is its not just leasehold that attracts service charges these days because new housing estates have to have provision of green space.... developers slap on maintenance charges to upkeep that space. Thats OK we all want to live in nice well maintained areas its when that charge is seen as an earner by the development company problems arise.
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03-06-2021, 12:58 PM
20

Re: sons house buying problems

Originally Posted by Pixie Knuckles ->
What's a leasehold? Is that when you buy a house for 99 years or something, and you never really own it?
In simple terms you buy the house but not the land.
 
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