Topic: The 'Eeeek...buying/saving for a house' thread

[UntouchableLuis]

I believe things like sellers (of leasehold properties) not being up to date with service charges/ground rents can hold up management packs as the management company issue them, but won't do it if there are ongoing disputes which results in any service charges beind upheld. Anything like that could be going on in the backround.

Yeah I think this may well have happened by the sounds of it as well as the management company changing hands as well.

Just absolutely incredible that 3 sales could fall through because of a third party under no legal obligation to do anything about it. Madness.

[UntouchableLuis]

Anyone ever bought a property with leasehold involved?

We are 4 months in to our purchase of a freehold house with no issues, everything ready to exchange but they're waiting on a management pack to be sent for their onwards purchase which is a leasehold house. The seller of that house is moving into a vacant flat but that's also leasehold and they're also waiting on a bloody management pack!!

We've chased this for weeks, same with our seller's EA and their solicitor but we are getting nowhere.

We've decided to sell out flat and live with family temporarily as didn't want to lose our buyer but thinking we'll give our seller maybe until mid February otherwise we'll have to look for another house as it surely shouldn't take 5-6 months. Just completely ridiculous this country trying to buy a property.

Both our seller and the one above them now have these management packs with their solicitors but we only have 5 more working days for our mortgage offer to be valid.

I don't trust the solicitors above our one to get the job done in time.

Both sellers aren't willing to break the chain to let us complete in time.

Basically accepted we are losing around 4 k in early repayment charges and having to live with my parents/put stuff into storage for hopefully no more than a few weeks. We will have to apply for a new mortgage offer as well which is a pain in the arse, although rates do seem to be coming down.

The alternative was to lose our buyer and go through this whole shambolic process again.

Never moving again if this all goes through.

[reddebs]

Both our seller and the one above them now have these management packs with their solicitors but we only have 5 more working days for our mortgage offer to be valid.

I don't trust the solicitors above our one to get the job done in time.

Both sellers aren't willing to break the chain to let us complete in time.

Basically accepted we are losing around 4 k in early repayment charges and having to live with my parents/put stuff into storage for hopefully no more than a few weeks. We will have to apply for a new mortgage offer as well which is a pain in the arse, although rates do seem to be coming down.

The alternative was to lose our buyer and go through this whole shambolic process again.

Never moving again if this all goes through.

The mortgage situation may be a blessing as I've been reading there's loads of reduced fixed rate deals being offered now.

[UntouchableLuis]

The mortgage situation may be a blessing as I've been reading there's loads of reduced fixed rate deals being offered now.

Yeah that's what we are hoping might soften the blow.

Next week is crunch time anyway.

We're going to give our sellers probably another 5 weeks max then going to seriously look at other houses. It will be past 6 months after offer then. The hold up is above them but that's not my problem, we offered on a house and we were told that the person at the top was happy to break the chain if it came down to it to allow a reasonable time frame for the chain to complete but they've completely gone back on everything they said and been a pain in the arse.

[The G in Gerrard]

The mortgage situation may be a blessing as I've been reading there's loads of reduced fixed rate deals being offered now.

Indeed we've just renegotiated ours that we'd agreed to before Christmas (which comes into effect from next month).

[UntouchableLuis]

Yeah that's what we are hoping might soften the blow.

Next week is crunch time anyway.

We're going to give our sellers probably another 5 weeks max then going to seriously look at other houses. It will be past 6 months after offer then. The hold up is above them but that's not my problem, we offered on a house and we were told that the person at the top was happy to break the chain if it came down to it to allow a reasonable time frame for the chain to complete but they've completely gone back on everything they said and been a pain in the arse.

We exchanged on Friday, finally! Get the keys this Friday.

Seller is breaking the chain as the arse at the top still hasn't got everything in order.

Any tips for completion day?

We are getting all our stuff (mainly a bit of furniture) to storage the day before and living with my family for a bit while we get stuff done to the house.

[The G in Gerrard]

We exchanged on Friday, finally! Get the keys this Friday.

Congrats!

[Riquende]

We're off out viewing a couple of possibilities tomorrow. For reasons I don't want to go into (just yet) we're quite motivated buyers, so on one place certainly I'm feeling a bit of an itchy offer finger if a couple of the rooms feel big enough.

Thing is, I'm trying to navigate the Scottish property system and I know there are some significant differences. We had a meeting with a mortgage broker attached to local estate agent at the start of the week who took our basic info and gave us a top number that's a good chunk above what we'd need for the sort of property we're looking at, but I know you also need a solicitor to make a proper offer on your behalf and they need to also have all the relevant information to hand such as proof of funds etc. I don't have a solicitor lined up, I'm not really sure how you go about choosing one - only time I've brought property before I had a family connection to someone involved in conveyancing so they were able to deal with it all on the cheap.

In his follow up email after our meeting the broker said he can appoint a lawyer when it comes to making an offer and liaise with them, does this just seem a bit 'chucking work your mate's way' or something potentially dodgy going on? Should the two be completely isolated?

[Riquende]

We got over our misgivings, looked up the solicitor in question and the firm seemed okay so have proceeded, our offer was accepted seems like bloody ages ago (14th Feb) and it took until Tuesday just gone for the mortgage application to be approved, so we're just waiting on the paperwork to go over before starting to make the actual arrangements. We're in a rented flat right now so the plan is to not have a single day where we need to uproot everything in one go and can spend a week moving across (the house is only 5 mins drive away).

Hopefully not too many hiccups along the way now, we've been told there's no chain beyond our own purchase and the Scottish system is supposedly quite robust once the solicitors are involved, financial penalties involved for either party if something happens to collapse the move.

[Drinks Sangria]

Good luck Riquende, hopefully everything goes well with it.

There seems to be greater housing stock than for at least the last five years, presumably because prices are still historically high, but interest rates are high comparable to recent years, so people essentially can’t afford the level of house they could’ve - on paper at least - 2-5 years ago.

We have lived in our home for around two and a half years now and I love the area but do want something even more rural (currently semi-rural village setting) and more land/privacy. Issue with that is the cost and the lack of availability of those sort of properties. £500k doesn’t seem to actually get you anything particularly spectacular these days which is mental when you think about it.

[Riquende]

We've had through some paperwork from the solicitor today, all the terms are agreed and it just needs us to go through all the documentation, pretend we can understand legalese and give them confirmation in the morning that we want to proceed. As long as the sellers can sort out their onward purchase (etc etc up the chain) then we're set...

Basically the back story is this. In mid-January we got an scary-looking letter from a solicitor representing one of the big banks, turned out our landlord is in mortgage arrears and had 2 months to pay up or they would potentially start proceedings to repossess the house. The letter was addressed to any occupants in the property as a courtesy as essentially we would be evicted when the back took possession. Looking into the purchase history and the numbers in the letter, the landlord put down a 10% deposit 20 years ago and has only ever paid the interest since, as they still owe the 90% balance. The letting agents have told us the landlord has assured them it's all some big mistake and there is no mortgage at all, but they have no way to confirm that. And separately, we've raised a maintenance ticket over the hot tap in the bath not working and despite being classified as an 'emergency' on their system, weeks later they haven't even contacted us about it to even inspect it. This tells me all I need to know about their confidence they'll still be managing the property down the line!

Those 2 months ended on Tuesday this week, but the solicitors now won't even respond to me asking them if there's still an ongoing case against the landlord so we're entirely in the dark about current proceedings. I did at least find out from a legal charity that the earliest we could be chucked out would be 4 weeks after that date, but we wouldn't even know about it until 2 weeks before that deadline, a notice that could come any time after April begins...

So anyway! The plan was always to buy a property together and we'd managed to put a fair bit aside, but we started that journey just before Truss detonated the economy and skyrocketed the interest rates which put it on the backburner. As things have settled a little we went househunting and found a place the right sort of size, right sort of price and in the same area we're now, just a few minutes less convenient for the commute & public transport. With the still-slowed market our offer probably could have been a little less but I didn't want to risk losing out and having to wait on the market to throw up another good option. So here we are, potentially 10 days away from the keys!

[fridgepants]

We are hoping to actually buy this year for the first time, after years of being convinced it wasn't possible - things have fallen into place and to be honest the insecurity of renting/costs (we have a decent landlady, but it's never ours forever) really worries me to the extent that it's been affecting my mental health quite a bit. (We've already discounted leasehold places because from everything I understand the same worries are going to be there in the background - no idea how costs will rise, the headache of extending leases etc, still needing permission for certain things). At some point I want to be able to retire, we need a change of scene, and the past couple of years have made it a lot more important to be able to get to our parents' quickly, and now we've got the deposit, the remote working agreement so we don't need to change address and jobs in one go, and a couple of other things we were waiting to sort out sorted, so it could....actually happen?

Been trying to get my head around the whole process, but most fora I've looked on assume you're buying with one eye on the "property ladder" whereas I just want somewhere to live and to know nobody's going to ask me to move from it again. I really couldn't give a stuff about building equity or up and coming areas, I just want to know I'm in the same place this time next year and get to paint the walls whatever colour I want. I've had 15 different addresses since I left home and I'm just done with it. My attitude is that anywhere we buy in our budget will be at least as, or less, crappy than anywhere we could afford to rent where we live now, but it's still daunting!

The complicated bit is that we're moving from one end of the country to another so I have not a clue how the search process is going to work, really.

[gazzam1963]

We are hoping to actually buy this year for the first time, after years of being convinced it wasn't possible - things have fallen into place and to be honest the insecurity of renting/costs (we have a decent landlady, but it's never ours forever) really worries me to the extent that it's been affecting my mental health quite a bit. (We've already discounted leasehold places because from everything I understand the same worries are going to be there in the background - no idea how costs will rise, the headache of extending leases etc, still needing permission for certain things). At some point I want to be able to retire, we need a change of scene, and the past couple of years have made it a lot more important to be able to get to our parents' quickly, and now we've got the deposit, the remote working agreement so we don't need to change address and jobs in one go, and a couple of other things we were waiting to sort out sorted, so it could....actually happen?

Been trying to get my head around the whole process, but most fora I've looked on assume you're buying with one eye on the "property ladder" whereas I just want somewhere to live and to know nobody's going to ask me to move from it again. I really couldn't give a stuff about building equity or up and coming areas, I just want to know I'm in the same place this time next year and get to paint the walls whatever colour I want. I've had 15 different addresses since I left home and I'm just done with it. My attitude is that anywhere we buy in our budget will be at least as, or less, crappy than anywhere we could afford to rent where we live now, but it's still daunting!

The complicated bit is that we're moving from one end of the country to another so I have not a clue how the search process is going to work, really.

I wouldn’t discount leasehold on an older property , most have 999 year leases and ground rent that never increases . I have a house that I bough in 1998 it’s £50 a year for the next 970 years . It’s the newer ones and flats that can double or rise with inflation

[rob1966]

I wouldn’t discount leasehold on an older property , most have 999 year leases and ground rent that never increases . I have a house that I bough in 1998 it’s £50 a year for the next 970 years . It’s the newer ones and flats that can double or rise with inflation

We've got over 900 years on ours at £5 a year. They offered to sell us the leasehold for £800, I was going to do it until I saw how long was left on it

[gazzam1963]

We've got over 900 years on ours at £5 a year. They offered to sell us the leasehold for £800, I was going to do it until I saw how long was left on it

It’s only if you want to extend or carry out work you have to ask them , if you don’t and go ahead them when you sell you have to get retrospective permission . They know then they have you by the balls so the cost goes up I’d have snapped there hands off at £800 mine wanted 4k

[fridgepants]

Yes, houses are a different thing from what I understand. The more I read about how it works with flats the more it feels like the sort of thing that might make me as anxious long-term as renting, and if we were to sell later (hopefully because we're retiring to Okinawa or something) the ground rent and number of  years left on the lease become a headache.

[BarryCrocker]

With regards to leaseholds, if the owner sells their freehold could the new owners jack up the rates?

[gazzam1963]

With regards to leaseholds, if the owner sells their freehold could the new owners jack up the rates?

No the lease can’t be changed until it runs out as far as I’m aware

[rob1966]

It’s only if you want to extend or carry out work you have to ask them , if you don’t and go ahead them when you sell you have to get retrospective permission . They know then they have you by the balls so the cost goes up I’d have snapped there hands off at £800 mine wanted 4k

We've no plans to extend and when we pop our clogs the kids will just flog it, so didn't see the point. If they offer it again in future I'll think about buying it.

[Craig S]

No the lease can’t be changed until it runs out as far as I’m aware

In flats, the freeholder would spend the leaseholders money on the communal area. An unscrupulous freeholder could increase these cost for maintenance and upkeep

If a freehold is going to be sold, the leaseholder has right of first refusal.

I used to own a flat years ago and the freeholder was going to transfer to his niece. He owned the freehold and one flat in the building, and he was moving into a retirement home. We as leaseholders complained and so we were allowed to purchase it. In the end he just wanted his legal cost covering, so we ended up buying a 1/6 share of it each for about £200 per flat.

[The G in Gerrard]

The amount of flats being made and councils approving planning applications for them is obscene.

[gazzam1963]

In flats, the freeholder would spend the leaseholders money on the communal area. An unscrupulous freeholder could increase these cost for maintenance and upkeep

If a freehold is going to be sold, the leaseholder has right of first refusal.

I used to own a flat years ago and the freeholder was going to transfer to his niece. He owned the freehold and one flat in the building, and he was moving into a retirement home. We as leaseholders complained and so we were allowed to purchase it. In the end he just wanted his legal cost covering, so we ended up buying a 1/6 share of it each for about £200 per flat.

I own a flat in a 1960s block in liverpool , the freehold is owned by the management company which is a limited company with 44 shareholders who are the owners of the flats . It works well as there is a definite awareness of costs and expenditure , it also has a  £80k bank balance , Based on a service charge of just £65 a month which inc insurance , window cleaning , gardens doing and communal areas cleaned as well as external maintence

[Riquende]

I've heard today that all the paperwork is sorted and our deposit cash is in place and ready to go. Nothing to do now but wait in tomorrow for the go-ahead to collect the keys (as the day stretches along agonisingly slowly...)

[Riquende]

And I have the keys! Now we can be evicted in peace...

[Drinks Sangria]

And I have the keys! Now we can be evicted in peace...

Fantastic news, hope that’s taken some worry away from you.

[reddebs]

And I have the keys! Now we can be evicted in peace...

Great news mate congratulations on owning your own bricks and mortar 👍