Leasehold service charges - am I being ripped off? Post Reply

[PapaT]

Hi all,

I am looking at purchasing a GF 2BR victorian conversion (6 flats in the building) leasehold. The service charges seem quite high and I am trying to sanity check these and see if anyone can tell me what they pay or relatively how this compares.

First off, the building insurance alone is just shy of £1,300. That alone seems insane to me - I feel like that could cover the whole building.

Second the additional service charges ar near $1,500. I've asked for but not yet seen a breakdown of the charges.

Please help me understand if these charges seem reasonable/par for the course in terms of victorian conversions, or if the management company is taking advantage (this is a private management company, not council owned).

Thanks!

[twomonkeys]

That seems very high. I pay buildings insurance to a broker for a house with five flats and it's £650 (split between us all). The cover is good and it's underwritten by L&G, so I'm sure you could get something similar.

I can't comment on the service charges, but as you say, you'll need to see a breakdown of whether this includes a sinking fund for repair costs which might account for the large cost.

It seems a lot from my experience, but hopefully others will comment too.

good luck.

[Hamptons_EandS]

Dear PapaT

you are right to sanity check those figures as the building insurance seems high indeed. I own an upper maisonette and we have the freehold to the building so I have to arrange the insurance and the total premium for the building with two flats is circa £600. The only issue is that perhaps there is greater risk with 5 flats in a building that someone starts a fire, floods a neighbouring flat etc. Without speaking to the underwriters it is hard to know how they calculate risk etc. With regards to the service charge again it is hard to comment because it depends what you get for your money, are the communal areas cleaned, have they just done/or are about to do some major works which requires additional contributions etc. You need to see the break down. In my opinion as long as the building is well looked after then I wouldn't mind paying either a minimal charge and then forking out for major bills when they come, or a higher charge but knowing there is money in the pot for big bills. There is more than one way to skin a cat as they say. There is such a thing as the right to manage for leaseholders in a building if they feel they are being ripped off. I am not sure of the ins and outs but if you love the flat then the service charges can usually be sorted out.

Yours
James Weston
Hamptons International
Sales Manager Earlsfield and Southfields.

[windmill26]

Hi,what they quoted you is EXTORTIONATE! We live in a newly built development and our service charge (including building insurance,cleaning,concierge,lifts etc) is around £130 monthly.

[firsttimerSW11]

Yes that's a lot.
I own a flat in a Grade II listed building which consists of 8 flats and we pay approx £1400 per annum, which I think is quite steep. Ask for a breakdown of the numbers.

[dickinsonron]

What they've quoted you is absolutely ludicrous. Our monthly service price in our brand new building comes to about £130 and covers things like building insurance, cleaning, concierge, elevators, and more.

 

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