Council owning freehold - thoughts?

[londoner_77]

Hi all,

I was wondering if anyone has any experiences (positive or negative!) of owning a leasehold property where Southwark Council is the freeholder.

The reason I ask is that I am looking at buying a flat in a house where Southwark owns the freehold. There is one other flat in the building, which the council rents out to tenants.

I am a cautious first time buyer and am just trying to work out whether the council owning the freehold is a good or bad thing!

Any insight that anyone could give would be greatly appreciated.

[scotlander]

In my experience its a good thing - the service charge covers buildings insurance and a lot of repairs and seems reasonably priced.

[londoner_77]

scotlander Wrote:

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> In my experience its a good thing - the service

> charge covers buildings insurance and a lot of

> repairs and seems reasonably priced.

Thanks Scotlander! Do you actually live in a property where Southwark is the freeholder then? Yes, the service charge does seem reasonable on the property I'm looking at.

[scotlander]

Yes, I live in a flat where southwark are the freeholder - its a 2 flat building as well.

[Pugwash]

You could be liable financially for improvements made for the whole building i.e. If council decide to put on a new roof at ?8000 you may be charged for half of it. I would get a solicitor to look very closely at all clauses.

My old neighbour purchased her 1st floor flat from the council and later regretted it as services charges paid did not guarantee the reliability of the service provided or frequency, and any improvements (the council's words) went ahead without consulting her and she just got an invoice.

[londoner_77]

^^^ Thanks Pugwash - yes, I have had a look at the council website and leaseholders are liable to pay if they decide to undertake "major works" on the property. But then, isn't that the same in any leasehold building, whether the freeholder is private or council?

[Pugwash]

Yes - but my experience of the council thay suddenly turn up and say we are putting on a new roof - do not give you detailed breakdown of costs etc. Admittedly not all private landlords do.

We were by default for a couple of years, freeholders of a large family property which included a leaseholder's flat, we had to negotiate with the leaseholder about costs, repairs etc. and come to a compromise.