10 Tips When Buying a Flat
10 tips when buying a flat
Your solicitor will ask the vendor’s solicitor for a management enquiry form (known as an LPE1 form). This is completed by the block’s managing agent and should answer some of the questions below, but you should not rely on this document only.
Check your lease and find out:
1.1 Ground rent – check how much is payable, when it is due under the lease, how often it increases and by how much
1.2 Service charge – check if there is a sinking fund, when the service charge is due, what percentage is payable, how it is calculated and if the landlord can vary the percentage
1.3 Pets – what are the rules about keeping a pet
1.4 Flooring – are you allowed a wood floor or does it have to be carpeted (even if the flat has wood floors when you purchase it, if it is against the lease you may have to put the carpets back)
1.5 Windows - who is responsible for the glass in the windows, the window frames and the painting of the outside surface of the frames – landlord or lessee
1.6 Entrance door - who is responsible for the entrance door to the flat
1.7 Sub-letting - what are the rules about ASTs and short-term lets
Is the current layout of the flat the same as in the lease plan. If not, ask for the Licence to Alter that would be required to authorise any changes
Check who the managing agents are and whether they have a good reputation (ask other lessees; the Directors of the freehold company, if they are lessees; or the Right to Manage Company, if there is one)
Find out if the lessees have the ability to appoint and replace the managing agent
Ask for the year-to-date service charge expenditure report from the managing agents (don’t just rely on historic service charge accounts which could be a year out of date) and the current cash balances held by the managing agent
Ask the managing agents if there is a 10 year capex plan, if none:
6.1 Check when the last major works involving a Section 20 Notice were carried out and when the next one is due
6.2 Check the likely cost of the next Section 20 works and whether there are sufficient funds held in the sinking fund account to meet this cost
6.3 Considering asking your surveyor to report on the condition of the block
If there is a flat above you, check for sound/noise transmission. If the flat above has young children and wood floors there will almost certainly be some
Is there somewhere to store a bike and leave your rubbish?
How clean and tidy are the common parts? Are there items lying around such as junk mail, prams, bikes etc. (items left in the common parts are prohibited under fire safety regulations) If so, this indicates lack of good management…
…in which case, contact us!