Listen to her words....i was in the same situation pretty much word for word... The lease conditions.... The service charges, selling it is a nightmare, the hidden fees that crop up from the freeholder and property management company are sickening.... Don't ever buy a flat people.

@NicoleSage

9 ай бұрын

Thanks so much for your support and comment from someone who understands, just another example from a leaseholder here of why to never buy a flat!

@bobjames6622

9 ай бұрын

I lived in a flat until 2011, when I sold up. would NEVER live in a flat, or leasehold property EVER again.

@NicoleSage

9 ай бұрын

So glad you managed to get out too, the WORST@@bobjames6622

@nickbrown6457

9 ай бұрын

If you buy a leasehold, you're buying nothing. You're basically just agreeing to rent the space from the land owner at a hugely inflated price for a long period of time. Apparently the UK is the only country that operates this archaic system. You also have no real control of what the management fee gets spent on, or more importantly doesn't get spent on.

@bobjames6622

9 ай бұрын

@@NicoleSage I found out that such things have a serious, and detrimental impact upon mental health. It wasn't just when those people were in the flat below me, it was also when they weren't there and I was DREADING that first slammed door which would announce their arrival from work. Which meant another evening of hell for me. At one point I was so desperate that I put on the Iowa album by Slipknot (great band, BTW) and I had a SERIOUSLY good music system and put it on full blast. Within seconds you could hear scurrying feet from downstairs as they left their flat. Didn't hear them again until the next day! I always actually listened to my music wiht headphones on (and still do) as I don't want to be the kind of prat that drives my neighbours nuts, but they really deserved that. I didn't do it again because it wasn't fair to the other neighbours, but I felt I HAD to do something otherwise I would have gone down there that evening and done something I would REALLY have regretted. PS: just realised that I was responding to you about another post on another video you made. The above relates to my 3 years of hell over noisy neighbours.

Before you make an offer on a flat do two things. 1. Ask the agents to write to you with the balance of the sinking fund. If it is low or nil then get advice from an independent professional as the what the risks could be. 2. Ask the agents to provide you with copies of the minutes for the last 12 months' management company meetings. You'll then see any important matters that are discussed. Could be anything such as the need for a new roof, noisy owners, subletting problems, parking problems. Some might be trivial, and others may put you right off buying.

@NicoleSage

9 ай бұрын

Great suggestions, thank you

@vladimiraofficial

8 ай бұрын

Brilliant suggestions.

@drosman2872

Ай бұрын

Was about to look into flats and am so happy I saw your comment will do

I vowed never ever to buy another property in the UK, regardless of whether it was freehold or leasehold. That was in 2010 and I kept that vow. I rented a bedsit in London, just about breaking even each month, for 8 years. That way, I could get up and leave any time I wanted to. In 2014, I started research on emigrating, initially looking at South and Central America. After 2016, that changed to a Eastern European countries. I moved to Bulgaria in 2020, escaping a country (the UK) destined for totalitarianism. I've never looked back - bought five properties here for cash, one I and my family live in, the others are rented. No mortgages, no loans, no leaseholds. Services charges of just £8 per month on the largest property. Council tax equivalent of £10 per month. Utility bills one tenth that of the UK - yes 90% less! My average electricity bill for our 3 bedrooms maisonette, which includes heating, cooling, hot water and everything else is £75 per month and we don't try to save much electricity - 2 adults, 2 kids, 4 cats. Water is an average of £29 per month. Personally, I think living in the UK is utterly nuts now and I will never be returning. My friends all agree, I did the right thing. I have an infinitely better quality of life and a significantly safe one too.

@NicoleSage

9 ай бұрын

Thank you so much for sharing this, in recent months the drive to live outside of the UK has grown even more apparent for so many reasons for me so this was very interesting to read and food for thought.

@cyrilblakeyblake8807

9 ай бұрын

@@NicoleSage you're absolutely right, there are so many reasons. I posted something on FB a couple of weeks ago, with 32 reasons - I could have added more. It's somewhat interesting that the Global Peace Index, now lists nine Eastern European countries in the top 30. The UK is now lagging behind in 37th place. With the problems that the UK is encountering, getting worse still, I'm predicting a further fall for 2024. Bulgaria is 30th (Romania 31st). Slovenia came 8th and Czechia 12th.

@ndyaarthurmartha8748

9 ай бұрын

Dober den moya brat. Kak si? v Bansko cim.

@goharikjones7387

9 ай бұрын

A couldn't agree with you more, wishing you all the best and Good luck. I moved to Eastern county myself in 2008 I am sooo happy and feel very safe too which is top priority for me, BUT, a big BUT..my kids and grandkids want me to come back to UK 😢 I really don't know what to do, half of me wants to for my kids sake, but the other half ? No I do not want to come to Broken UK !!

@superwelshman

9 ай бұрын

Do you have citizenship in Bulgaria? How easy was it to buy?

I recall owning a flat 30 years ago,on the ground floor in a block 3 stories high.The first thing I noticed was the noise of other flat owners coming and going,as the main entrance door was near my front door.This gets a bit annoying when people have friends round and they leave at night, and chat and laugh at the main doors for 10 minutes usually at 11pm. Then the owner of the flat upstairs left the bath taps on,which eventually flooded my bathroom immediately underneath. No one knew how to contact him, and the situation got desperate.I contacted the freeholders but they refused to disclose his 'phone number,under some Data Protection Act.After a lot of begging they 'phoned him direct and he returned several hours later and turned off his taps.I can't recall how I sorted it out but another problem with flats is the lack of ventilation,especially in bathrooms,kitchens and toilets. The list of petty but annoying incidents almost every month was enough to put me off buying a flat again.

@NicoleSage

9 ай бұрын

Oh god, it sounds exactly like what I put up with in my flat. I was also on the ground floor and lived with 3 airbnb properties, no escaping it, but luckily didn't have to deal with any flooding, what a nightmare. Very glad it put you off buying a flat again!

That was a very informative video. "Leaseholders are not favoured at all by the government", I'm pretty sure your statement is true. Why would MPs change anything for leaseholders, its how many of them make their additional income on top of their £86,584 MPs salary. Owning the freehold of buildings is extremely lucrative in our 'unfettered' capitalist 'grab what you can' economy and MPs have their noses in that trough.

@NicoleSage

9 ай бұрын

Thank you! Agree with everything you’ve said, leaseholders absolutely aren’t favoured, it’s a total disgrace and it’s why I just don’t think they’ll do anything about it, I always wondered why people would buy freeholds of property until the penny dropped, the fees are uncapped and they aren’t regulated, awful system

Never, ever sign a lease agreement - 1. it's the same as renting, but with extra fees. 2. you never own the property 3. you can't sell the lease on later as nobody wants it. - it's a money trap.

@NicoleSage

9 ай бұрын

Absolutely, perfectly put 🙌🏻

@jamessmith1652

9 ай бұрын

Even houses can be leasehold 999 years, does that really matter in the grand scheme of things?

@victablet3480

8 ай бұрын

Yes. I did manage to, but had to rely on it being a pretty flat in a good ,location. I had an investor really mess me around, wanting 20k off the price to buy out the permission on the lease. Mine has 110 yrs left. Managed to sell, huge relief.

@havvayalin4591

8 ай бұрын

So you sign a lease agreement , when you buy it , I dont understand

Me and my wife bought a flat about 2 years ago and although our original plan was to buy a house, due to the location of that flat, we decided to go for it. Now I was well informed about the cons of buying a flat, but one thing I didn’t take into account was how difficult it will be dealing with the management company (they were put in place by the freeholder). You quickly realise how helpless you are in terms of what they charge. Our building is less than 10 flats yet we pay over £2500 each flat a year, we have no lift or electric gate, we literally pay for once a month cleaning the hall way and emergency lighting near the entrance. We are now going thru RTM process to get rid of the Management company and we have to fork out another £3000 for solicitor fees. My advice to anyone, stay away from flats. It’s not worth the stress!

@NicoleSage

8 ай бұрын

So sorry you're going through this now, the managing company is the worst, as you say you have no control over what they charge. Keeping my fingers crossed for you with the RTM process, it's all a money game with them!

@KINGZ44four

8 ай бұрын

@@NicoleSage it is indeed! Thanks you!

To be clear, this excellent and informative video is about flat ownership in *England*, not in all of the UK. The presenter more or less conflates owning a flat with having a leasehold, and owning a house with a freehold (although she does mention that houses can be subject to leasehold as well). This is indeed the most common state of affairs in England (and, I think, also in Wales), but in Scotland, leasehold is extremely rare. Rather, when you own a flat in Scotland, you own your own flat, plus a share of the communal spaces. (A similar model does also exist now in England, called 'commonhold'. This was only introduced relatively recently.) Usually, there is an owners' association that contracts a 'factor' to carry out maintenance and collect the corresponding fees. This is, in fact, how flat ownership works in many countries! I should add that in Scotland, how well this system works can be a bit hit or miss. Some buildings are very well organised, but if they aren't, it can be the cause of major headaches.

@frmcf

9 ай бұрын

£1,500- to £2,000 service charge a year is insane, by the way. No wonder flat ownership is so unpopular in England. I always thought it was mostly a cultural thing that made British people love their little semi-detached in the suburbs, but you've shone a light on all the ways that leaseholders are screwed over, which is surely a big part of it as well

@NicoleSage

9 ай бұрын

Thanks so much for your comment, you're absolutely right that it's actually 'England' affected by this, although I am not too aware of the Scottish system myself. Yes, leasehold is a terrible system and hopefully this will educate anyone who still wants to embark on a leasehold property to save stress and a lot of money down the line.

@jessicaellina3878

9 ай бұрын

Thanks for that! As a Scot, l was getting very confused about all this information that l had never heard of! Sounds a real nightmare and very costly in England😮

@davidowen2396

9 ай бұрын

I heard that many of those beautiful tenement blocks in Glasgow have fallen into severe structural disrepair due to problems "enforcing" repairs where neighbours don't agree on these matters or don't care. I've bought and sold 4 flats in London in my lifetime. The best managed were actually leasehold with good management structures in place. The last flat I owned was "Share of Freehold" (I had bought a lease with a share in the freehold). The share of the freehold which each resident had was what caused the problem...people veto-ing repair work that they considered were not necessary "I'm not paying for that...I won't be still living here in 2 years". Sometimes it's better to have a fair and well-planned constitution imposed and enforced, preferably on a 999 year lease.

@thecrimsondragon9744

5 ай бұрын

Ah yes, i thought as much. Freehold flats is just one of many reasons I would consider moving to Scotland (from England).

Hello Nicole. Listening to you was certainly an education for me even though I've been through the rigmarole myself. IMO, by far THE biggest problem in flat ownership is your bloody neighbours!!! I eventually sold my 2 bed, X council flat in a very leafy suburb of N LDN back in Jan 2019. To say selling it was a headache would be the understatement of the century. I listed with 3 different estate agents, one after the other, as the first two were complete numpties but even with the third agent the sale fell through 5 times. On top of this, as i mentioned, i was also dealing with my ground floor neighbours. For the last 10 years of living above them they managed to destroy my life, so much so i decided to implicate a reduction in sale of £90,000 in order to secure a quick buyer. Yeah....i lost £90,000 just to get away from those animals below me. Anyhoo...this taught me a valuable lesson, NEVER BUY/LEASE A FLAT, more so in stinkin, frickin London! Needless to say, i now own...OWN a wee cottage in the west country. My sanity is slowly returning. All the best honey. P.S. Plymouth's lovely 💕

@NicoleSage

9 ай бұрын

Thank you so much for your comment! Oh my gosh, I am so sorry you have been through this, I was very lucky I only had to deal with mine for 6 months but it truly felt miserable, I never wanted to come home. Despite your loss, I am so pleased you have managed to sell and get out of leasehold, you never think you'll have neighbours from hell until you do. Your cottage sounds gorgeous and the West Country too!! You certainly appreciate it all the more when you come from an awful experience like that!

@burntcrumpets5616

9 ай бұрын

Cheers Hun.... subscribed💕

@NicoleSage

9 ай бұрын

@@burntcrumpets5616 thanks so much! 💖

@bobjames6622

9 ай бұрын

I know EXACTLY what you mean. I lived in a flat for 17 years and for the last three years it was HELL. The bastards in the flat below didn't just slam doors, they SMASHED them shut. And then the music which literally had the ENTIRE block shaking over it's 4 stories....and I was right above it! I complained to the flat owner (as it was rented to them) and he didn't give a crap. I complained to the council, and they didn't give a crap. At one point it got so bad I was thinking daily about doing really bad things to the flat below, but thankfully I managed to refrain, otherwise I would have been in jail. Creatures like that should be up against a wall and machine gunned. Even now, 11 years later and now living in a house, if I hear a sudden loud bang then, just for an instant, I'm mentally right back in that flat. I curse them for what they did and can only hope that something terrible became of them.

@burntcrumpets5616

9 ай бұрын

@@bobjames6622 oh mate. I do hope you've now found some much deserved peace. Yes.....the door slamming! My flat was a first floor maisonette with floor board partitioning. You can imagine can't you. I was a Turkish family of 8 (mother, father, three young daughters a teenaged cousin & the father's parents) in a two bed flat! Their extended family & friends would congregate every single weekend & school holidays increasing the number to roughly 20+. The flat was sublet through a different council so no amount of complaining resulted in any action. Their rear garden which my flat looked over was a dump to say the least & during the summer months when our windows were open the smell from below rising up was indescribable. They vandalised my car, smashed up my bins & constantly accused me as a racist. The whole time I was caring for my elderly mother who was battling her fourth bout of breast cancer & a brain tumor. You can guess that my fingers were firmly X'd when the flat was being viewed for sale. I never thought I'd ever get out, so much so that my mother & I agreed on a suicide pact if things carried on the way they were. When the flat finally sold we were homeless for a while living out of Premier Inns until I made the decision to move to the west country & look for a cottage to buy out right with what was made on the sale. We weren't entitled to a mortgage so it was find something within our budget or rent. This time the heavens were on our side for a change. Yes, the cottage is teeny weeny but it's mine. It SO quiet it was a shock to the system & I'm surrounded by lush green pastures, beautiful blue stone homes, horses being ridden up & down out front & neighbours I thought didn't exist in real life. One of which is the late Una Stubbs' brother. He's a potter. 4½ years now & what can I say apart from I've become someone new. I'm glad you've been able to move on too. I hope for the better! Big hugs Bob.

Regarding the neighbours: unless you have detached house, you need to look very closely at the neighbouring properties. If one or both are rentals (to students would be the worst) or one house is derelict, then you are in for trouble.

@NicoleSage

9 ай бұрын

It's definitely a problem in flats AND houses, peeking in the garden and outside area is always a precursor, and driving by at different times in the day

UK leasehold is such a scam! You don't actually own anything, pay rent to 3 landlords instead of one, and responsible for all costs, repairs and even insurance which makes profit for the freeholder. Scam x 3. Plus service charges that go out of control and cost an absolute rip-off.

@NicoleSage

9 ай бұрын

You've summed it up perfectly

I'm currently saving a deposit, and doing everything I can to avoid leasehold (ie. flats), even if that means having to save for longer. Maintenance charges. Lease issues / extension costs. Cladding issues. No thanks. I'd rather pay "dead money" renting whilst I try and get a freehold property. Leasehold is an outmoded, feudal system that almost no other country uses. Scrap it.

@NicoleSage

9 ай бұрын

Best thing you will ever do, completely agree - leasehold is the worst system. Best of luck with your deposit and purchase!

@NicoleSage

9 ай бұрын

100% @@SageLynxx

@thecrimsondragon9744

5 ай бұрын

I heard in Scotland the flats are freehold. If this is true, why is it different from England?

@athaliahgrunburg8574

Ай бұрын

You are still losing money then what’s the point? As long as a flat isn’t in a massive housing block with lifts or has a horrendous service charge/ground rent that goes up each year (which you can check prior) why not buy a leasehold? The system sucks but you can still play your cards right and not loose money… unless you are investing elsewhere in the meantime I guess

🎯 Key Takeaways for quick navigation: 00:00 🏢 Leasehold properties in the UK explained, highlighting that owners hold a lease agreement, not the full property. 01:37 🏠 Proponents of owning a UK flat include affordability for single buyers and low maintenance managed by an agency. 06:08 ⏱️ The longer the lease, the better. Lease extensions can be costly and complicated. 07:59 💸 Costs of owning a flat include service charges and ground rent. Ground rent can complicate buying and selling. 11:54 🔊 Consider the physical and social aspects such as noise, neighbours, and challenges with Airbnb properties in the building. 14:42 📑 The selling process of flats can be longer than houses due to needing detailed information from the lease amd potential deed variations. 15:25 📖 Final thoughts recommend weighing pros and cons, considering legal factors, and being aware of financial strain from increasing service charges. Made with HARPA AI

@NicoleSage

8 ай бұрын

Appreciate it, thanks!

Since I’ve owned my leasehold flat 2006 the sinking fund has disappeared year on year until 2019 the managing agents requested the first £1000 contribution from all of the 28 flats in my block and have more than doubled the service charges. Trust me they’re on a nice little earner even taking a cut from the car parking company who act like the Talliban in policing the grounds with our cars at 4-30am one Sunday morning issuing a £100 ticket. My flat is on the market for sale- if it doesn’t sell I’ll put it into auction. Life lesson and a piece of sound advice,, don’t , don’t buy a leasehold unless you want non stop rising bills . Rent it.

Leasehold should be avoided at all costs. Nothing but a mortgaged tenancy with uncapped charges on top ..better off renting. Flats are also the most exposed part of the market and are already tanking in value.

@NicoleSage

9 ай бұрын

100% agree with you, renting is so much more favourable than leasehold, you know where you stand to a certain degree and you can walk away when you want.

On top of everything, these modern built apartments are made of rubbish (no air circulation, low bills in winter, but mould on the back of the furniture although I keep windows open, low ceilings). I can see how roof already needs repair after 5 -10 years. I am renting, but I would never buy this apartment. They might look nice on the outside, but you can hardly breathe inside without windows being open.

@NicoleSage

9 ай бұрын

Ugh yes. New builds are notorious for this, they’re thin walls, not built or ventilated properly and a proper fix is hugely expensive. Very glad you are only renting though

This needs to reach all people in the UK even contemplating buying a flat! Excellent video!

@NicoleSage

8 ай бұрын

Thanks so much for watching!

The worst thing about living in a flat is noisey inconsiderate neighbours!!

@NicoleSage

8 ай бұрын

Yes. It’s the worst and no control over it!

Great video, very informative about the broken leasehold system in the UK 👏

@NicoleSage

9 ай бұрын

Thank you!

@frmcf

9 ай бұрын

In England*

My service charge is DISGUSTING. Very expensive and constantly increasing year on year. The ground rent thankfully is peanuts. But the service charge is like I said, pretty disgusting.

@athaliahgrunburg8574

Ай бұрын

Then why did you buy it?

Beware of service charge increases, they can literally double in a year. Always look at the previous service charge costs (solictor should provide during purchase) and see how much they go up each year. You'll need to factor that increase every year at a minimum as part of your annual budget.

@NicoleSage

9 ай бұрын

Great point to make, thank you for commenting

@boyasaka

9 ай бұрын

My lease holder tried to get me to sign a new doubling lease That doubled every 5 years And I’ve read many builders are adding these doubling leases on new build flats Yes my lease was only 250 a year But with the way doubling compounds 250 5 years 500 10 years 1000 15 years 2000 20 years 4000 25 years 8000 30 years 16000 35 years 32000 Friggin flat only worth 80k These properties will become worthless

@a-qy4cq

3 ай бұрын

@@boyasaka you're really mixing stuff up...

Thanks for taking the time out fir such informative/educational points

@NicoleSage

8 ай бұрын

You're very welcome, thanks for watching!

This is excellent. Well done and easy to understand. Thank you !

@NicoleSage

9 ай бұрын

Thank you so much, much appreciated!

Really good video, with so much detail and personal experience. Thanks for posting.

@NicoleSage

9 ай бұрын

Thanks so much, appreciate it!

We bought a flat back in 2016. I insisted on the property having a share of freehold and not a horrible leasehold new build so we found a nice top floor Victorian conversion in South East London. Being on the top floor gave us the opportunity to extend into the loft which gave us an extra 2 bedrooms and 1 bathroom. My advice is to stay well clear of new builds and lease holds and only get a flat with a share of freehold. Why spend all that money and not own a share of the freehold- makes zero sense?

@NicoleSage

8 ай бұрын

Great advice, totally agree that share of freehold is best if you buy a flat, so glad you've had a good experience

@Nonplussed1

8 ай бұрын

I had the same thinking and have have had seven years of hell!

@georgesotiriou7051

8 ай бұрын

I am a bit confused on this one. I have seen flats in my area (South West) which are house conversions. They state that the owners have a share of the freehold and that there is no ground rent but then the lease is stated as 250 years since year x. I just don't get how there can still be a lease when you own a share of the freehold. Any thoughts?

@raquille1

8 ай бұрын

@@georgesotiriou7051 yes its all very confusing. The share of the freehold in our flat also has a leasehold but our leasehold is 999 years for all parties so for all intents and purposes its one that lasts forever. I guess we were lucky in that regard

Great video. Im glad I sold my flat several years back, felt like the flat was never actually my home. The mantainance was going up each year, around 7-800 GBP per year when I sold (excluding yearly ground rent - which is another complete con), the residents had no say in the expenditure it was pretty much dictated by the property mantaininance company, one example is the residents had to pay for fences to be erected on a peice of land opposite the block to protect a strip of green belt from deer.... god knows why that was our responsibility, and this was 15 years after the flats had been built! There were pros and cons, in my situation id say more cons. The flip side of living in a block which is in a desirable area is that if youre on a ground floor flat and above you - you have airbnb flats you have to listen to the sound of people dragging cases up the stairs every couple of days (unless you have a lift). Knowing what I know now after owning a flat if it came to it I think id rather live in a van - id have much more control over my destiny and expenditure. There are and will be a lot of factors which are out of your control.

@NicoleSage

8 ай бұрын

Thank you for watching and sharing your experience, that sounds awful - completely relate to the feeling that it never feels like it's your home, so glad you managed to get out of leasehold too and I'm with you on living in a van, you have no control over leasehold, and rising fees, the freeholder always has you where it wants you

thanks for this video, I wasn’t going to buy a flat or a house but its good info to know

@NicoleSage

9 ай бұрын

You're very welcome!

A very good explanation and description

@NicoleSage

9 ай бұрын

Thank you so much for your comment, much appreciated!

This is so helpful! Thank you for sharing all these gems xx

@NicoleSage

Ай бұрын

Thank you for watching Aisha! 💜xx

thank you for sharing your story. This video was recommended to me because i watched a few other videos on this issue, and after being properly educated I will now luckily never fall in to this disgusting trap.

@NicoleSage

8 ай бұрын

Thanks for watching, and so glad it could help, definitely avoid leasehold at all costs!

Living in the. United States, I was fascinated to hear all the complexities of owning a flat in the UK. The normal process here is to rent an apartment for a monthly fee for the duration of one’s lease. Is that also an arrangement there? If so, what is the advantage of buying a flat? Also, I’d read that in the UK, mortgage interest rates on houses re-set every one, two, or five years (unlike here where the typical mortgage is for 30 years at a fixed interest). With the current spike in interest rates in the UK, homeowners must be panicking as they approach their re-set. Anyway, good vid, thanks.

@NicoleSage

9 ай бұрын

I bet it was! Yes, we do have the process here but only if they are renting the flat rather than getting a mortgage for it. In my eyes there really is no advantage!! Really you only win if you have a share of the freehold, so you aren't controlled by someone above you. Yep, that's correct! It fascinates me that the US has such long mortgage terms. When we get a mortgage we can choose what amount of years we like, usually the very short ones 1 years, 2 years have higher rates than the longer terms. Because of this, landlords whose mortgage terms are coming to an end are having to sell up because the rise in mortgage is something they simply can't pass onto the renter. Thanks so much for your comment!

@backyardgrillmaster2910

9 ай бұрын

I got a lost listening to her I'm from the US as well it just seems so confusing you buy a flat but you're not really buying anything you just buying a lease .

@sriramcan

5 ай бұрын

in UK you never 'own' a flat and you only take is for 'lease'. I am originally from India and came here 14 years ago. I was utterly surprised seeing the size of the rooms which are nothing but hobbit holes. British love saying 'good sized' rooms which is left to your imagination. There is another crazy thing in London. Have you heard of 'shared ownership'? That means you own a % of the flat and pay ground rent on the rest. Basically worst of both worlds!!

@beckyb76563

5 ай бұрын

@@sriramcan You can own a flat if you have a share of the Freehold. I agree shared ownership is an absolute con.

My reverse freehold flat was great. Lived in it for 12 years fairly problem free give or take a few things. I was lucky I think. It doubled in price in the 12 years and then I bought a big house. I would never buy a leasehold flat though with management company, ground rent, the nightmare lease extensions etc. My lease was 980 years or so. I’m glad you are warning people of the awful pitfalls of leasehold flats that aren’t reverse freehold. I live in Plymouth too btw😊

@NicoleSage

9 ай бұрын

How interesting, I've never come across reverse freehold before, I'm glad you managed to get out when you did and you had a very very good lease which absolutely helps. Thanks so much, and wow, hello from Plymouth! :)

@blackrainbow192

9 ай бұрын

@@NicoleSageit’s basically just another name for shared freehold. So myself and the person who lived above me would share the costs of the building maintenance. It’s all well and good until you get someone who doesn’t want to cooperate or pay. Thankfully I was lucky and I never had any issues with that, but it is still a risk nevertheless and I was always nervous about who would live upstairs as it sold 3 times in the 12 years I was there. So so glad I live in a house now. My selling process was very long and arduous and solicitors in Mutley (Curtis Whiteford Crocker) were terrible. Your videos are fantastic and will help so many people. I went through absolute hell during selling like you did, but for different issues than yours. Thanks so much for helping people and warning them in advance 🙏🏽

@georgesotiriou7051

8 ай бұрын

How can there be a lease when you own a share of the freehold? I'm really confused by that.

I am not going to delve into the technicalities of leasehold and stuff but just find living in flats a terrible idea for a host of reasons, regardless of the mode of purchase: -You have a large number of neighbours with strictly no control over them. The larger the number of neighbours, the greater the likelihood of them being noisy, involved in drug use or other sources of trouble. -No intimacy resulting from the above (particularly if the builder has decided to cut costs by doing away soundproofing and thick walls). You immediate neighbours will know everything about your leisure activities (including sex life) and you will know about theirs too. -Great concentration of people in one place = incentive for drug dealers, burglars and other criminals. There are customers to sell drugs to and properties begging to be burgled. -Various fees related to services which may or may not be delivered. -Lack of room and lack of external yard is a great recipe to be driven to madness (particularly in the event of a pandemic during which you are forced to remain inside your home!). And then what do you do the day there is a power outage? Climb 35-40 flights of stairs?

@NicoleSage

9 ай бұрын

Great comment, thanks for sharing, you’re right that it’s blocks of flats in general that are just terrible for so many reasons, neighbours being a huge one of them

Well done on this video. Very clear and informative. If you buy a flat it is a huge advantage if it is ahare of freehold. It is sad to see so many very young people who want to leave because of housing costs but are finding it more difficult as Great Britain has left the single market. When I speak to people in continental Europe they are shocked that a leasehold system exists in the UK. Sadly property in continental Europe is in general so much cheaper than the UK particularly outside capital cities.

@NicoleSage

8 ай бұрын

Thanks for watching, yes totally agree, share of freehold is always better. Totally agree, the system is so medieval over here, other countries can't get their head around it, worst system ever

I currently purchased a leasehold maisonette privately and has an absent landlord who went bankrupt and the property comes with a peppercorn ground rent and a title absolute. A win win in my eyes. I was faced with a few challenges but I worked as an estate agent for a number of years which helped me navigate the sale.

@NicoleSage

8 ай бұрын

Sounds like a diamond in the rough, good if you can find them!

Very useful video. Thanks for sharing.

@NicoleSage

9 ай бұрын

Thank you!

Yup. The drug-dealer neighbour seems to be obligatory. In the UK. the one near me refused to go away. Except when he got arrested for shooting somebody in the head.

@NicoleSage

9 ай бұрын

Omg that sounds awful. Doesn’t even matter if you live in a nice area, they still worm their way in somehow

@NicoleSage

9 ай бұрын

@@SageLynxx very similar happened to me, one day he just disappeared then found out he had gone back into jail. Totally agree, they get their comeuppance eventually

Great advice. I'm a single, white mail living in a freehold semi detached house but was attached to a neighbour from hell and ended up suffering a mental breakdown. Not because of the neighbour but they certainly didn't help me feel great. You're neighbours and area play a significant part in any property I would say they are number 1 but affordability will take priority for 99.9% of us who live alone,never mind have a family and kids etc

@NicoleSage

8 ай бұрын

That sounds awful, neighbours are by far the worst thing whether it's a leasehold or freehold as you can't escape it. Hope your situation has got better since then, it's really difficult being a single buyer as options are more limited for sure

@keys6

Ай бұрын

Neighbours from hell can be anywhere... any property...

@srjwari

Ай бұрын

@@keys6 yes... but the worst ones are those you share a wall or access too.. trust me. Most if all people can ignore the headcase 3 blocks down but you cant escape it if your nextdoor

Thanks for posting this x

@NicoleSage

8 ай бұрын

You’re welcome! Thanks for watching 😊

I grew up in Plymouth so when you mentioned Plymouth (this is the first video I’ve seen of your’s) it brought me back. After moved out of my childhood home I rented on Ebrington Street for a while, while I was at uni and a few years after. I’ve been living in Cornwall over the pandemic and earlier this year I bought a ground floor flat in Redruth. Not where I intend on being but what I could afford. It’s a lovely little flat though so I don’t mind. Only 2 stories and all the downstairs flat have their own doors (no external/ internal door). Which I love. A communal garden. The payments aren’t that bad, (especially for what we get) hopefully they don’t increase or increase by much next year. I’m single and disabled so right now it suits me great. 980 years left on the lease so that’s great! Despite all this I definitely agree with everything you said and would much prefer a house next time if I can afford it. Personally my main downside is despite the fact it’s only 20 years old, god I can hear everything my upstairs neighbour does.

@NicoleSage

8 ай бұрын

Oh wow, what a small world! Congrats on getting your flat, and it sounds like you’ve got a really great situation with the super long lease and payments, it definitely makes a huge difference who the freeholder is and of course the lease length which won’t cause you any problems when you sell in the future. Oh god the noise and floorboard sounds are the worst, I was in a Georgian flat and whilst the walls were thick blocks the overhead noise was something else! Thanks so much for watching :)

Cost me 5K to extend lease when term got to 80 years. Ground rent was £10 per year but disposed of after the extension. Service charges creep up yearly and currently at £450.

@NicoleSage

9 ай бұрын

Well done on extending the lease, it’s not cheap but does makes your property more saleable in the future and peace of mind with the length of lease. Service charges are a nightmare, mine were around 1.5K-2k before I sold up

@devonk5565

2 ай бұрын

Which website to check for My Lease extension Quota

The only Con that I think you haven't mentioned is the fact that you cannot (and must not) make any alterations to the flat. If you want to, say, move a doorway to a more convenient position, or knock down a wall to open the room up, you will have to apply to the Managing Agents, who then apply to the Freeholder, for a "Licence for Alterations". As you have found out to your cost, both charge just to answer questions - a real rip-off 🙄🙄 ‼️ The Licence is drawn up by the Freeholder's Solicitors and YOU will pay the Freeholders costs and his Solicitors costs, the Managing Agent's costs, as well as your own costs. In other words 'Everything Costs'. When I mentioned all the problems involved with buying a flat to a friend who was about to embark on this 'big mistake' he did not believe me ‼️ I have not seen him since that day (when I told him - 2004?) but often wonder if he went ahead and if so, now regrets not listening to me 😒😒

@NicoleSage

9 ай бұрын

Thank you for sharing this and this is a really good point I forgot to mention, it’s absolutely obscene - same with enquiries for whether you can have pets in the property, just reiterates the point that you don’t own one brick. Let’s hope your friend didn’t find out the hard way either, many choose to listen to what they don’t want to hear!

Very detail and informative and great video

@NicoleSage

3 ай бұрын

Thank you!

I was very close to buying a new build 2 bed flat about 10 years in Nottingham. It was a 999 year lease, and the property was cheap (about £130k). I pulled out in the end as if I moved away for work, the income from renting it out wouldn't cover the mortgage and service charge payments, and I didn't want the hassle of going back and forth between London and Nottingham to deal with the flat. I was also worried about the noise as the walls / ceiling / floors were like cardboard. I would say new build flats are potentially okay IF you can get them super cheap, any rental income can potentially cover the mortgage + service charges and you're not stretching yourself financially...which is probably not many in any major city these days. Or you're buying a flat with a share of the freehold and you own/have a share in the management company eg. originally a large multi bedroom Georgian/Victorian building, converted into flat eg. originally a large multi bedroom house converted into a 2 x 2 bed flats. At least that way you have some control over it. Anything where you're at the mercy of a developer, I would run a mile from, even more so if its a shared ownership type flat where you pay rent and the mortgage and only own a % of the property. The latter has been abused by developers so much in London that its criminal!

@NicoleSage

8 ай бұрын

Yes great points, completely agree that share of freehold is always best and due diligence is required heavily if it's a large freeholder in the UK as this is where costs will be extensive and uncapped in the future, god, shared ownership is even worse. It's terrible as it appeals to those on a lower income but you end up worse off financially, and you don't even own it!

Slightly off topic (as its not about flats) but one thing I would be VERY careful about is buying an old Victorian terrace that doesn't have proper wall/roof insulation. I used to own a 2 bed freehold terraced house that was HORRENDOUS during the winter months. I had to keep the central heating on 24 hours a day (£££££s) over the winter months because the insulation was so bad (it was freezing) and even then it was only about 14-15C indoors.

@NicoleSage

8 ай бұрын

This is very true, and a lot of houses like this are sold during the summer so the damp issues aren't visible, also paint covers a lot! Victorian houses are notorious for this, we have a Victorian terrace house now and it had awful damp last winter, usually to do with poor ventilation

I just came across your video and appreciate the candid way in which this is being explained. I'm an American and this is rather confusing to have to pay so much for something you will never own. Other than buying an actual house, is there another way to purchase a flat in the U.K.; or is this only if someone is unable to put down the full deposit required?

@NicoleSage

9 ай бұрын

Thank you! This is still applicable to those who require a mortgage with a deposit and cash buyers. However, you can purchase the freehold of a flat from the existing freeholder, depending on who the existing freeholder is, this can cost a lot. I was offered a share of the freehold previously and it would have been £16,000, we would still have to organise maintenance of the property though amongst the other flat owners. Hope that makes sense, the system is overly complicated for no reason!

My daughter is buying a flat for £50000 in Morocco. It is a 81 sqm beautiful apartment in northern Morocco . A nice neighbourhood and only 20 mins walk to the beach. Young people must look at other countries and opportunities. As a digital nomad she loves Marrakesh and Essaouira. Airbnb is a great way for her to pay £30 a night in these towns when she visits the south.

@NicoleSage

8 ай бұрын

That sounds amazing! I totally agree, there is a different life outside of the UK and if you can go and get it go for it!

@DAHQatar

4 ай бұрын

I did the same. Unfortunately, this option is not available for everyone. You normally have to be a third culture national.

@adamlasry5225

4 ай бұрын

@@DAHQatar Any European or a American can buy a house or property in a town or city in Morocco. Moroccan banks ask a foreigner for 30% deposit. You can get a loan from Morocco.

Also, I have noticed that lots of freeholders sell the air space above the apartment block to developers who then construct additional storeys for new flats.

@NicoleSage

8 ай бұрын

That’s interesting, I have heard of this done in the US

Really useful video. Thank you

@NicoleSage

8 ай бұрын

You're welcome, thanks for watching!

Concise. well presented, well done!

@NicoleSage

8 ай бұрын

Thank you for watching!

Oh wow!! In my country, our flats/apartments > there's 2 types - "public housing" & private condominiums. Charges are pretty upfront for purchase & selling. Leases (when you buy units brand new) are either 99yrs, 999yrs or freehold (public housing are only 99years). Issues with leases are only when you need to get loans to finance the purchase (if your lease are less than 60yrs). Thankful that additional charges are regulated and very transparent.

@NicoleSage

9 ай бұрын

No way! What country are you in? I do think the English leasehold system is the worst, if everything was transparent and costs laid out like you say, it would be a much fairer system for everyone

@nur_aryani

9 ай бұрын

@@NicoleSage > I live in Singapore. I just purchased a 2 bedroom flat under our BTO (Built-To-Order) which took almost 5years to be ready (the only downside) but it comes with 99 years lease. But if you can't wait, you can buy from the resale open market > leases would range from as long as to 90 years to as short as 30 years. The only thing you need to worry about buying a flat with less than 60 years lease would be your mortage or loan amount. Apart from that, any other matters are VERY transparent. It's the law here. Property agents has to make everything transparent & upfront.

@NicoleSage

9 ай бұрын

How interesting, thanks so much for sharing! Congrats on your new purchase :) @@nur_aryani

Bite the bullet and extend your lease and get rid off the ground rent. This will in most cases get the free holder of your back. Use the law to free your ground rent. Only buy lease hold flat's or houses if you have no alternative. Never buy any lease hold with 10 year doubling ground rent. Great insights and excellent advice 👌 👏

@NicoleSage

9 ай бұрын

Yes, totally agree, if you can get the lease extended, will be worth it in the long run and make the property saleable, thanks so much for your comment!

@nauxsi

28 күн бұрын

But if the lease is 200 years + am not sure what that would do.

@zawarshah508

28 күн бұрын

@nauxsi if you have doubling ground rent's and even if your lease is 999 years renew it to get rid of the ground rent. It will save money and you will get peace of mind.

@nauxsi

28 күн бұрын

@@zawarshah508 mine isn't doubling but it does go up every 10 years. Started at 150. Then 200. Now 300 for the next decade.

@zawarshah508

28 күн бұрын

@nauxsi so renew the lease and get rid off it. Just wait till the next election and see what happens. After that renew and get rid off it. No one needs ground rent going up forever.

Completely agree with all your points. The service charge was something I used to dread every year, but the biggest problem I had was the late night noise from the residents who lived above me, plus all the stomping around right above my head, and people who liked to make late night calls to their friends right outside my window whilst they were having a fag. Young people might not mind that so much, but it used to drive me crazy. Flats definitely have their advantages as you pointed out, but no way would I choose to live in a flat again. I live in a detached house now - the peace and quiet is bliss and I own it, not some landlord.

@NicoleSage

8 ай бұрын

That sounds exactly what I had to put up with too! The block had 3 airbnb properties so weekends were the worst, charging through the door at 3am or being sick out the front, don't miss it one bit! Glad you're in a house now, it has unmeasurable effects on your life and wellbeing!

Good video. I'm a BTL investor and these are all the things I check when buying leasehold properties. I think you are just missing some context around, reasons you bought a flat and reasons you sold and area you bought in (London I find is more prone to strange niche leaseagreements). Buying for BTL purposes and holding for the long term is vastly different to buy to live in. Remortgaging leasehold especially flats can be volatile. I had a situation where banks refused to lend because of EWS1 certification. It was at a time where the legislation was not finalised and banks had misaligned requirements to Leasehold management agencies. That has all been sorted now. Something to consider.

@NicoleSage

8 ай бұрын

Thanks for watching, great points, although this video wasn't designed for BTL investors on flats and instead for those deciding between freehold and leasehold/first time buyers who might not be aware of the complexities that come with it.

Bad things about a flat are the service charges, they usually cost a small fortune. Then there's the neighbours coming and going/noise. Good things are security, there's two doors to get into your flat. You're garden and communal areas are cleaned and done for you. Big plus is if you're neighbours are Ok then it's an extra bonus as it's like a small community. Big thing to do is not go into anything bigger than three floors. Never, ever go ground floor, try and get an end flat so you have no neighbours at least one side to you. Cheaper energy bills, easier to clean and maintain. The other thing you can go for is a bungalow, it's like a flat, but you have you're own front door. Moral of the story is, never buy a flat, but rent one.

@NicoleSage

7 ай бұрын

Great advice, thanks for sharing!

My first boss in Australia told me to never buy an apartment in Australia. Ever. I listened and am happy i listened.

@NicoleSage

26 күн бұрын

It’s great when people give good life advice!

Insightful video … 🙏

@NicoleSage

9 ай бұрын

Thank you! 😊

My flat is a Shared Freehold I own 1:12 th of the Freehold and we decide the service charge etc and what works required.

@NicoleSage

9 ай бұрын

If you can do it, it’s the best solution, we were offered a share at one point but it would have been 16k each at the time

*so you got flatteringly flattened ?*

great advice, thank you!

@NicoleSage

8 ай бұрын

You're welcome, thanks for watching!

I would point out that you can buy the share of a freehold with a flat/house too (with the other leaseholders in the building). Don’t forget. Rare but it’s still possible.

@NicoleSage

9 ай бұрын

Yes, this is a great point thank you

if you have a leasehold property, you do own the property or part of, but not the land it is on.

@NicoleSage

9 ай бұрын

Yes technically, however all you own is a lease agreement, if you let it run the course of the lease term without extending it would go back to the freeholder. You have to ask permission for any alterations within the property too, it might feel like you own it but you’re always controlled by the lease and freeholder unless you buy a share of the freehold

Thank you for all the information .So after you had this experience your opinion is that is better to rent a flat rather than to buy one ?

@NicoleSage

9 ай бұрын

Yes, from my perspective definitely. Whilst you have similar issues with neighbours etc, you know to a certain extent your rental payments + utility bills and you can walk away from the contract whenever you like, too many extra variables with buying a flat and it will come with a whole load of stress and expenses you can't control. Thanks for the comment!

@keys6

Ай бұрын

Madness!!!! Never rent!!!! Never....

Correction: if you have a roof problem as freehold u dont need to pay 15k, you get buildings insurance for a reason….

I hate flats because of the leasehold thing but if you want to be in a city it's the only way at times

@NicoleSage

9 ай бұрын

Yep completely agree, it’s a catch 22 in some cities

Lots of mortgage companies will not give a mortgage, if the service charge per annum, exceeds 2% of the asking price. A friend of mine encountered this difficulty trying to sell his flat. He is still trying to sell now.

@NicoleSage

9 ай бұрын

That's awful, I didn't know it was becoming an issue with onerous service changes too, hope your friend is able to get out somehow

@andygreen1a

9 ай бұрын

@@NicoleSage unfortunately it is a problem, meaning people can be trapped and unable to sell. Or have to sell ridiculously low and cash buyers only as it becomes impossible to get a mortgage on the property

@martynsmith8120

9 ай бұрын

1% on my property. My lease also contained a doubling ground clause which my solicitors failed to mention when I purchased the property and ended up costing mr thousands to do a deed of variation. Leasehold should be outlawed or renamed scam.

I bought a flat in Swindon a while back. Service charge was £80 a month, but my mortgage was about 10x that so not such a big deal. The service charge included maintenance on the extensive gardens and discounted access to the complex swimming pool and gym, so money for something. The management company had just replaced all the wooden window frames with uPVC so they were doing stuff. We had a committee to raise issues with them. The various neighbours were lovely people - but then this was a generally nice neighbourhood ( a lot of the people that are complaining about flats in the comments below are really complaining about the quality of people living in low-rent neighbourhoods, they just don't like putting it in those terms!). I sold it in 2019 for £130,000. The only problem I ever had was water pouring in from my flat from the flat above - which took a lot of effort to fix and the claim was made against my neighbour. All in all it was OK. Worth noting that in 2003 the government introduced Schedule E soundproofing requirements for all new builds which means that flats (and terraced houses) built after that time generally have good soundproofing - as evidence by my GFs flat which was built in 2017 and has excellent soundproofing. The point I am making is that flats are a perfectly good buy for young people and divorcees as long as you take care with what you are buying.

I bought the freehold for my two bedroom flat for £500. Its in a nice safe place in a lovely area.

@NicoleSage

9 ай бұрын

There are situations you can acquire the freehold at a cheap price, it depends who the main freeholder is. Many flats in England are controlled by huge companies, it would have cost me £16k to buy a share in the freehold

Common Hold is good, but not very widespread. Very long Leases .(In my case over 900 years, so low cost) All owners can form an Association & Themselves manage expenditure. A combined fee is paid for the Joint Freehold.

@NicoleSage

9 ай бұрын

That's interesting to know and does seem better than leasehold with length of lease and costs

Is it not the case that all the information about what kind of leasehold a property has is available at the due diligence stage? Or it's something you could research beforehand? We don't have such hassly leaseholds as what you mention here in Australia, but we do have over 50 complexes with all sorts of extra fees and problems and huge costs and difficulty in selling. I read about all this before buying and decided against it. Also, at the buying stage, a lawyer can explain the contract so you know what you're buying in to. The problem here is people buying and doing no due diligence- they don't consult a lawyer, they just go on the glossy advertising and tben complain later no one told them anything. It was on them to investigate via research, reading and legal consulting.

My worse experience with flat is terrible management company

My advice is never buy a groundfloor one . The main drain collapsed and everything from the two flats above came up out of my toilet including mucky bathwater , toilet waste and dishwater / washing machine waste . Also buy one at the end of a block where there is more chance of external bathroom and kitchen windows otherwise mould is guaranteed

@NicoleSage

9 ай бұрын

Oh my gosh, that sounds awful. I lived in a basement flat rented during uni and had virtually the same experience, drains bursting and coming into the kitchen and rising damp everywhere in the bedroom. Great advice, thank you

Tenement flats in Edinburgh are freehold. I guess that applies to Scotland generally …. And that is in UK

My contribution would be to absolutely be mindful of air circulation within the property... most likely you are viewing it while it is empty so there wont be any airborne damp, trickle vents in the windows ventilation to outside in the kitchen and bathrooms... this can be so overlooked with flats as its likely a small area with clothes being dried indoors as opposed to outside... especially during the winter months...

@NicoleSage

6 ай бұрын

That’s great advice, also pay close attention to buying in the summer as damp is easy to conceal, problems often don’t begin until the winter kicks in

I agree with you. Our family been involved with flats. You can bee screwed over with a lease and maintenance contract.. It's a way of getting more out of you whether you rent or buy. Yes Rental as well. Extra added on to your rent. Watch out. Avoid or try a deal with the land lord or seller. But that's not very hopeful. Thanks for the info again.

@NicoleSage

9 ай бұрын

Thanks for your comment! Yes, rentals can be just as bad, but at least you can walk away when the contract ends, sorry your family have been involved in issues like these too, terrible system

Agree with most of your cons. You are always at the mercy of the leaseholder = slave for life. Worth also adding, you can't make many renovations either without the leaseholders permission (they can be difficult sometimes too).

@NicoleSage

9 ай бұрын

Totally agree. Yes that’s a great one I forgot to mention, and you often have to pay for the enquiries (at least I did with my freeholder) same with pet requests.

@harshupadhyaya7263

9 ай бұрын

@@NicoleSage lol yes! They would charge you for every email if they could. The government massively needs to do more to scrap things like ground rent, absurd jumps in service charges etc. Not to forget, they all take an under the table "cut or bribe" for large repairs to take out of the sinking fund. For example show a roof replacement of £100k when it could have probably cost half the price. We always assume corruption happens in third world countries, but happens here too, just a pen 🖋️ (guess can call it white collar crime). I don't own flats but all this was enough to put me off, I would buy to rent but not for myself. But appreciate they are more affordable and sometimes one just doesn't have a choice.

@joline2730

9 ай бұрын

@@NicoleSage you ALWAYS have to pay ‼️🙄🙄

@mistertechno1

9 ай бұрын

Not in Jockland

First the security IS an issue - you cannot rely on other people in your building to be as security concious as you are. They might leave the main front door on the latch or even wide open, enabling strangers to walk in. Not good 😒 Second, you may well pay a service charge and pay into a sinking fund for major works BUT I can assure you this will never cover totally the works needed, your managing agents will see to that - they are usually self-serving and pay themselves great chunks of money and you will be asked to cough up some additional sums, which are usually large ‼️ so beware 😒😒

@NicoleSage

9 ай бұрын

Yes, tbh I did have this with the drug dealers living above me, back door left open with the broom against it constantly. Again, yes sinking charge is there but undoubtedly will not cover everything, very luckily I didn’t get embroiled in this but know something happened like this just after I sold up, thank you for sharing

@joline2730

9 ай бұрын

@@NicoleSage You're welcome ... and I'm glad you got out of this whole fiasco relatively unscathed - my comments are not just for you, but for others watching your vid and reading the comments - you learn so much from others' opinions. I worked at a solicitors during my whole career as a secretary, and picked up all this knowledge through that. An important point you make is finding a good solicitor ... when I have to hire one I ask how long they have been one, and how long in this particular field of work (including leases in particular if that's what you are after). Always remember _Experience is Everything_

Very informative, i knew like 90% of the info. Luckly. Yeah i agree leashold is a very big headache . Coucil tax is still paid by apartment. No? If changes to the building are made. Only the management decides or is there like a vote if the people agree? Lets say the management wants to make a automatic parking barier. Can the people vote no? Also because of extra costs?

@NicoleSage

9 ай бұрын

Yes, council tax still paid individually per apartment, IF the leaseholders want something done in the property then it's usually done as a vote that is put forward to the freeholder, however, the freeholder can say the building needs something doing and each freeholder has to pay a share, you can appeal some of these things but the route can be convoluted and difficult. If they wanted an automatic parking barrier for example I think they would have to prove why it was needed to the leaseholders, but not entirely sure as I was only in a 5 block property so was unaffected by much bigger costs like servicing lifts etc.

Thanks. Comprehensive and detailed discussion. You know so much, you should become an estate agent. Lots of people need this kind of information, including investors from outside of UK.

@NicoleSage

9 ай бұрын

Thank you so much! I absolutely agree - definitely learnt a lot on the way and hope I can educate people to think twice about the implications of leasehold

Can someone please tell me for sure if it's the same if buying council flat(I am entitled to buy mine after living there now for 5 years)

@NicoleSage

5 ай бұрын

I think it varies depending who the council is, but you would still have ground rent, service charge, best to contact them directly to see if you can find out as everyone's lease will be different

I see loads of flats going up for sale near where i live . I said to the wife the other day thay look nice but i bet people are selling up due to the hidden ground rent and maintenance bills. i said thats why i sold up when i met you . i have looked up what that property is worth now i took it on for 22.000 and sold it for 40.000 and had it for 9 years . but the biggest pain was ground rent and maintenance but i dont regret selling up i have been with my wife 23 years. oh and when i looked at the place its now worth 140.000 its plain madness but i dont regret sell up and it was never about money i now rent and we have a nice place

@NicoleSage

9 ай бұрын

I've been monitoring the market recently and seeing the same, flats are on there for months not shifting too whilst landlords are selling up as they can't afford the rise in mortgage costs. You did the right thing selling up when you did, the money is all relative at the time and sounds like you're in a much better position now, there's a lot to be said for renting and not being tied into ridiculous loans/interest rates

My view is that when you buy a leasehold, spend money on a solicitor who will explain to you exactly what you are buying. Also, investigate the landlord and pore over the information supplied by the seller especially the LPE1 form. There are properties where the leaseholders own the freehold. Finally, scrutinise the surveyor's report.

@user-ho9cj3pp1u

8 ай бұрын

You don't have to wait to apply for a lease extension after you have owned it for 2 years. The earlier you extend the cheaper it will be and obviously the ground rent reduced to a peppercorn.

A massive problem is the low build quality and no noise isolation. UK build quality is terrible and even a semi-detached with a bad neighbour will also send you crazy.

@NicoleSage

8 ай бұрын

Yes, totally agree - new build properties are terrible for this.

I was in a block of 4 flats unfortunately the freeholder owned the other 3 flats. The roof needed a couple of broken tiles replacing not above my property... i was billed 1500 pounds in a 4 way split total bill 6000. The tiles were replaced in an afternoon.. the tiles that were broken were replaced.. they cost a pound each. Never buy a flat.

@NicoleSage

9 ай бұрын

This is awful, no one ever tells you stuff like this will happen. Luckily we didn't have the cost of a roof, but I had to contribute towards repainting of the entire interior (5 floors) 2 years in a row because the airbnb guests kept bashing the walls with suitcases etc, so unfair this system.

@mistertechno1

9 ай бұрын

Dude, but that's your fault for not doing your homework. Saying never buy a flat is nonsense.

@Michael-fg8cd

9 ай бұрын

@@NicoleSage They dont and it's usually the first step on the ladder for many sadly. Service charge was for 2 energy bulbs rigged to a sensor. Freeholder has since sold his flats so is now getting atleast £5k a year for them 2 bulbs.. Also when selling he held up the sale by 6 weeks by not responding to solicitors qs. It was a relief to get out of the jaws of these scammy freeholders.

I live in a flat the only charge I get is £25 a year lease 985 years left and freeholder doesn't make us pay it

@NicoleSage

9 ай бұрын

That seems like a great deal, really does depend who the freeholder is, it's the bigger freehold companies that become a problem

@Goady1000

9 ай бұрын

@@NicoleSage uh its an old townhouse 3 story's so I'm bottom basement flat, and they live at the top

@blackrainbow192

9 ай бұрын

It’s called peppercorn rent. Funny name and a very old term. Interesting history if you look it up. I never had to pay mine either.

Thanks so much for this information. Will buy a house instead

@NicoleSage

9 ай бұрын

You’re so welcome, a much route than leasehold!

Great video thanks

@NicoleSage

8 ай бұрын

You’re welcome, thank you!

In UK do you have a freehold flats on market or freehold only applies for houses?

@NicoleSage

Ай бұрын

Freehold is generally houses in the UK, there will be some exceptions where a flat is freehold or a share of freehold but in comparison they are mostly leasehold. When looking at listings online, it should state whether it's leasehold or freehold though, hope that helps!

@balticvikings

Ай бұрын

@@NicoleSage very informative, thank you

I agree its a bit of a lottery with flats. The number one problem is the neighbours, they can be lovely but also they can be a nightmare if they are difficult, badly behaved or you end up falling out. And you can't get away from them - everytime you open your front door you can to bump into them! The number two problem is the freeholder's management company - they are generally really hard work. What most leaseholders don't understand is that they are all fighting over a limited pot of money - so what they consider a priority - isn't necessarily a priority for the freeholder. Its probably fair to say, if you want to be in control of your surroundings a house is a much better option.

@NicoleSage

2 ай бұрын

Totally agree, neighbours and freeholder, the things you really cannot change/ be in control of!

I'm stuck in this hell loop myself. We wanted to be home owners to start a family. We purchased a leasehold flat as that was all we could afford. 16years later we are still here but about to lose our home because we couldn't raise the shared equity amount after two redundancies and ever increased services charges. I'm terrified mostly for my little boy. Thank you for these videos stopping people making the same mistake x

@NicoleSage

15 күн бұрын

So sorry to hear you're going through this now, it's an absolute nightmare situation to be in. Are you needing to extend the lease? Would you be able to sell? Hope I can help in any way x

thank you for sharing

@NicoleSage

8 ай бұрын

Thanks for watching!

Look up share of freehold. It is something you did not cover. The residents jointly own the freehold of the property and there is no landlord or ground rent to pay. There is a management company but all expenditure has to be discussed and agreed with the leaseholders who also own the freehold. That is the deal I got and so far no complaints.

@NicoleSage

9 ай бұрын

Yes, this is a good point, if you can get a share of freehold this is the best position to be in. However, the cost is unattainable for many who are currently being controlled by huge freeholders in England, we were told 16K each for the share of freehold before it got bought out by a massive freeholder in the UK, it's a difficult situation for many

This is one thing I never understand in the UK property market. In Poland we have a flat as freehold. If you deciding to buy a flat once you paid out mortgage you are the owner of this property (your flat). So the only one fee you pai is service fee but this often contain water supply + waste collection and heating. For example you pay £150 monthly and this will cover what I listed above. If you getting to financial trouble thay might cut suplly of utilities and you might own the government a property tax but you can not be kick off the property once you paid your mortgage off

@NicoleSage

7 ай бұрын

English leasehold law is so medieval, there is no other country like this, it seems so much fairer in Poland!

If I buy a flat, is it possible not to hire a management company to take care of things?

@NicoleSage

7 ай бұрын

If you are buying a leasehold flat there will already be a management company/freeholder assigned to the property so you won't have a choice in the matter - they take care of invoicing - service charges, ground rent and organising all the maintenance of the property. When you are in the process of buying the property you will find out who this is with the LPE1 form or management pack that they will provide to your solicitors.

Thank you !

@NicoleSage

9 ай бұрын

You're welcome!

Only reason i can see for buying a flat is they are cheaper than houses. Personally id hate to have neighbours above and below me and on either side. Distance from neighbours gives you peace that is worth more than money

@NicoleSage

9 ай бұрын

Yep, I would not recommend it, worth saving longer for a deposit to get into a house

We bought flat in Croydon 2 years ago and we are really happy. But our landlord is council and that makes BIG difference! Paying £10 ground rent and servise charge £300 a year. Planing to increase lease and going to cost us £5000. I think its makes massive difference, who is your landlord.

@NicoleSage

8 ай бұрын

YES, you are right, who your freeholder is will dictate how expensive and difficult it will be. Due diligence is definitely required prior to purchasing - I was unfortunate as our freehold got bought out 2 years into owning it by a big freeholder in the UK, in hindsight I just didn't know enough about this side of leasehold

@martinamedulienka9241

8 ай бұрын

Great video BTW :-) We bought our flat with 90 yrs and we paid £5000 less because we knew we need to extend it in future. But the whole leashold in this country is absolutely nonsense, that's for sure.

What do you think of the new government legislation coming this Autumn which includes: A cap of 0.1% will be put on the ground rent of a property. New rules will be implemented on service charges. “Marriage value” will be stopped which accounts for a 50% increase in the property’s market value since the extension of a lease and is paid to the freeholder of the property. Allowing leaseholders to extend their lease as often as they want whilst maintaining zero ground rent for 990 years. Giving leaseholders the option to buy out the ground rent on the property to avoid having to extend the lease term. Reforming the process of enfranchisement valuation. This involves calculating the value of a property once the lease has been extended or when buying a freehold collectively with other flat owners within the block.

@NicoleSage

8 ай бұрын

I have heard some of this but know we will learn more during the November King's speech, I'm dubious how much it will benefit leaseholders and if this will come through but something badly needs to be done. I think if rules can be brought in to protect against the huge expenses of lease extensions/ground rent issues as mentioned it will totally transform the leasehold sector and make it easier for people to buy and sell.

4:20 If there is a water leak originating from your flat then you are responsible for it and all the damage it causes to flats beneath you.

Always wondering when I heard that, how spending 10-15k for a lease extension is expensive in order to spending 500-700k for flat/house?

@NicoleSage

21 күн бұрын

Lease extensions can’t be added onto mortgages and is an upfront cost, also it doesn’t matter if the flat was £90k, lease extensions are a similar cost regardless of the leasehold price

@BartMiko

21 күн бұрын

@@NicoleSage cheers, make sense now but is it also an investition and adds some more value into property?

@NicoleSage

20 күн бұрын

@@BartMiko No problem, and it definitely makes it more sellable having an extended lease for sure