Right to Buy- Council flat conversion- Is it a nightmare?

[*Tee*]

Hi,

I currently live on the ground floor of a Victorian Terrace flat conversion. There are only 2 flats in this building. The other resident is a council tenant and has no interest in purchasing his home, which means I will forever be at the mercy of the Freeholder- Southwark council.

I have now been sent my right to buy offer notice section 125 from southwark council after waiting for around 10 months for it.

At first I felt incredibly happy of the prospect of becoming a home owner, then I look further and see ridiculous yearly service charges and a five year major works bill for items which don't relate to the property, i;e Estate lighting, communal repairs etc...

The offer letter has also Informed me that the property was valued in August 2013 and in that time frame, if any major works have been carried out since this date, then I will be liable for these on completion too. This is ridiculous!! because in that time there has been a huge amount of works going on. Repairs to windows, doors etc.....

To top this all off, I have since been sent a letter last month detailing major works, to finally be carried out within the next couple of months, and even though i will still be a council tenant in the next couple of months whilst this work is happening, On completion of my right to buy, I will be given half the bill for these works.

Another annoyance is If my neighbour decided to come home drunk one day and smash the front door down, I will be liable for half of the bill for the entire duration of my lease......This doesnt seem fair to me.....

The whole offer notice looks dodgy. Instead of receiving an actual valuation where somebody visited the property , I receive a desktop valuation. I disputed this but now know that if I get a district valuer to value said property and they value it more, then I cannot revert back as the district valuer has the final say..

on the plus side,I really love my garden and little flat and would like to own it but without the headache of the major repairs charges that go with it.

I am very very keen to hear from those of you who have gone through the process, especially if it is a house conversion.

What were your experiences?

Any recommendations for a really good solicitor who really knows their stuff when dealing with council right to buys and leaseholds?

Any recommendations on where to start, i;e should I instruct a solicitor first or get a independent survey done before accepting my right to buy offer?

Many thanks in advance

*Tee*

[Earl Aelfheah]

Definitely get some advice from a solicitor. I don't know much about this, but if you have the opportunity to buy a Victorian conversion flat in ED, at what will be significantly under market value, then I would certainly try your best to do so.

[PeckhamRose]

Agree with the above. The difference being the extra charges will probably still outweigh an average mortgage. Do research and become a member of LAS (See the other thread) and go to Leaseholders CAB (See the other thread), and - see the other thread!

[woodland]

agree with the above - do your research carefully. Being at the mercy of major works and the councils decisions around them is not fun. We have just been landed with a bill for ?30,000 each. Get a good solicitor to check what major works are outstanding, when the roof was done and what major works they have planned. LEASE have a really good website and also a free phone advice service you can call. They were really helpful when I called them. Good luck!

[*Tee*]

All helpful advice. Thank you.

Can anyone recommend a good solicitor/ conveyancer?

Especially if they have dealt with right to buy/ leasehold issues.

Please get in touch!

Thanks

[miga]

.

[*Tee*]

Hi,

It's approximately 50 per cent.

While it sounds like a great deal, which it is, the service charges may bring it more in line with a regular mortgage!

*Tee*

[miga]

.

[Mustard]

Won't LEASE help you with the works and bills queries? Did you have some estate agents round to value it?

[spider69]

*Tee* Wrote:

-------------------------------------------------------

> Hi,

> It's approximately 50 per cent.

>

> While it sounds like a great deal, which it is,

> the service charges may bring it more in line with

> a regular mortgage!

>

>

> *Tee*

I have to admit I cannot understand the comment re Services charges normally on a two flat conversation house only attract only Insurance, responsive repairs,ground rent and electricty charges for the communal parts.

Major works normally a are every 5 years for externally decoration ,large works like roof etc can appear at any time but the pre assignment form should give an indication.

If you are getting a 50 discount and the major works that have bee done have been factored in it seems quite attractive.

What is the annual Service for 2014/15

[*Tee*]

Hi,

All major works have not been done yet, but due in a couple of months. The council intend to bill me for these works, even though in a couple of months I will still be a 'tenant'. Additionally on top of this, my majors works bill is ?20k for the next five years.

My annual service charge is ?500 which isn't a lot, but considering I don't have any communal lighting which is chargeable to the council and any communal areas to upkeep, I simply cannot understand why the council are aloud to charge for something which I have no use of.

After speaking to LEASE, they were not that useful to me over the phone, but I'm sure when I actually become a leaseholder they will be of some help in the near future.

Another question, should I be approaching a solicitor or conveyancer for the paperwork/ transaction Or both?

Apologies for what seems like a daft question but I have never done this before and feel a bit overwhelmed with it all

*Tee*

[spider69]

You do need to find a good solicitor and make sure he understands and explains in full Right to Buy transactions and the pitfalls.

If you have a light in a communial hall the electricity is coming from somewhere.

When you say the Major Works bill is ?20.000.00 for the next 5 years is that what is showing on the pre-assignment form. If it is that is common pratice to list all potential works for the future.

What is quite common is when tenants go to being L/H they still think many of the Services come for free.

[PokerTime]

You are getting a home at half the market value and you are complaining about a ?500 annual service charge? Really?

[spider69]

PokerTime Wrote:

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> You are getting a home at half the market value

> and you are complaining about a ?500 annual

> service charge? Really?

Unfortunatly what appears to be cheap can with Local authority properties turn into very very expensive on going bills.

How many L/H have found for example to replace windows they are paying thru the nose with Council charges.

With a Council tenant still in residence you will never be able to buy the freehold and you will be subject to them exercising due care and attention in relation to the property. They do not have to pay for repairs.

Never forget you are only buying the right to live there for a certain number of years which decreasing as time goes buy.

Although a single house conversion on a street is far better than a property on an estate

[PokerTime]

I agree regarding works, but only because a leaseholder has no say in who does the work and how much they can charge. That does seem to be extremely unfair.

But you can't begrudge the tenants. They don't own anything. That's where I lose sympathy with leaseholders.

At the end of the day you know what you are buying. 40% of people who buy their council homes do so because they can do so cheaply, and then move somewhere else and rent out the council property to fund the mortagages. You ask the tenant of a leasehold property how much rent they have to pay to their private landlord for example.

There are many flaws with the whole 'right to buy' system. Governments telling Local Authorities they can't charge market value being one. A better option for first time buyers on that scale are affordable new builds, but we are not building enough of those. Not suprising when local authorities are not getting market value for the property they already own.

[the-e-dealer]

Unwise to buy a Council Flat. Dont believe all the stuff about profit etc.

[ruffers]

A bit of a sweeping statement there ted.

[*Tee*]

spider69 Wrote:

-------------------------------------------------------

> You do need to find a good solicitor and make sure

> he understands and explains in full Right to Buy

> transactions and the pitfalls.

>

> If you have a light in a communial hall the

> electricity is coming from somewhere.

>

> When you say the Major Works bill is ?20.000.00

> for the next 5 years is that what is showing on

> the pre-assignment form. If it is that is common

> pratice to list all potential works for the

> future.

>

> What is quite common is when tenants go to being

> L/H they still think many of the Services come for

> free.

Yes we have 2 light switches and 2 lights in the hallway. Each supply independent of its own and charged to the relevant flat.

So again... Don't quite get the communal lighting charge. It may be little in comparison but if it doesn't apply it the charge should be removed.

*tee*