Aunty Char's Property Problems #2

I’m sorry to hear that. The responsibilities of a Freeholder do not just end with the upkeep and maintenance of the building but can stretch to preparation of budgets and accounts, ensuring the building meets health and safety regulations , building insurance etc. Each Leaseholder i.e. owner of the flat, will have a unique lease pertaining to their own individual flat and this should be checked carefully before buying.

The fact that there is another similar flat up for sale at a much lower price suggests that there are problems with the Freeholder and that they are trying to sell quick and cheap.

A good way to get problem properties sold is to do this via the traditional auction route because all the information is disclosed on a legal pack which potential buyers can choose to read or not. Prices tend to be heavily discounted, but buyers are cash and are willing to a potential risk because of the price reduction.

The Property Buying Company work closely with an Auction House and will be able to provide you with a price beforehand as to what they feel the flat would sell for.

I hope this helps

Unfortunately, this is a widespread problem but incredibly frustrating. Your Agent really should be doing their own diligence into confirming that the buyer has their agreement in principle from the mortgage company and are in a proceedable position to ensure that your sale doesn’t collapse.

However, even if a buyer has an agreement in principle (AIP) the lender could still refuse the mortgage further down the line.

If you’re willing to be flexible with price, a cash buying company is a good route as once you choose to sell to them, then you’ve sold your house and they wont pull out of the sale.

Alternatively, The Property Buying Company have Investors that are reliable cash buyers and may pay a little more.

You can be in control of timescales, so you have no buyer pushing you to move out, and if you’re buying on then the purchase will usually be tied in with the forward purchase.

Yes, they wont be offering the full price but sometimes a drop in price is worth the quicker timescale and hassle free sale.

Best wishes,

High service charges can be a real problem. They should be “reasonable” but that can be open to interpretation. I don’t think that there will be many buyers wanting to pay an extra several hundred pounds on top of a mortgage payment, particularly in this cost of living crisis.

Whilst flats with high service charges shouldn’t be a problem to get a mortgage on, it’s the saleability that can be an issue with buyers choosing alternative properties with lower charges instead.

Investors will mainly feel the same- it’s about the profit margin for them and if they can purchase a property without these additional costs then its likely that they would choose a freehold property over a leasehold

I would always suggest a traditional Auction route which is something that The Property Buying Company can facilitate. There’s no need to feel daunted if you have never investigated this route, because TPBC will do all the documentation for you including the legal side after you have agreed a price that all parties are happy with beforehand.

The property will be entered into the auction on your behalf, managed for you and once a buyer has been found, completion on the property is usually 14 days after, so its very quick. At Auction, properties are “sold as seen” so buyers will buy with flaws and issues because of the price reduction.

Warm regards,