This is a common issue in the conveyancing of leasehold flats in Islington
Our expert Leasehold Conveyancers have acted on a alot of ex-council leasehold flats in Islington recently (especially in areas such as Holloway,Bevin Court, Spa Green and advise that there exists a very common issue: that relating to Service Charge. When conducting the conveyancing on Leasehold flats our conveyancers who act in a conveyancing transaction for the sale of a property or purchase of an ex-council Leasehold flat in Islington are increasingly coming across Service Charges on ex-council that can exceed £5000.00 every year and even be as much as £10,000.00.
The Decent Homes Standard Applied on leasehold flats
The increase in Service Charges on ex-council Leasehold flats in Islington is mostly as a consequence of government legislation set down in 2000 when the then Labour government pledged to “ensure that all social housing meets set standards of decency by 2010 . The Decent Homes rules have meant that Local Authorities throughout the UK including Islington London Borough Council, have had to embark on a massive programme of improvements to upgrade their housing stock.
Those who have bought Leasehold flats in Council Blocks (in most cases within the Right to Buy) are required under the provisions of their leases to pay contributions not just to the expenses of day-to-day maintenance and repair of the block (Service charges) but in addition towards the costs of major works and renewals of the structure of the building, which include the services and windows. This can also include costs in improving the building.
Such is the condition of the Council Blocks in Holloway,Bevin Court, Spa Greenin which the Leasehold flats are situated (as a result of numerous years of neglect) that the works necessary to bring them up to the Decent Homes Standard are often extensive.
So How Exactly Does this Effect Prospective Buyers in conveyancing Transactions
When acting in a Conveyancing transaction for the sale or purchase of a ex-council leasehold flat in Islington, our conveyancers are finding that the Seller has received notice of the works proposed as well as the cost of such works up to twelve months in advance. This might well be the key reason why they are selling. It is crucial for the Conveyancer to be especially diligent when dealing with ex-council leasehold flats in Islington as not all the works are carried out at the same time and there’s often a programme of these works planned over a number of years, with an further £2000-£3000 being added to the yearly Service Charges each year for each and every leasehold flat within the block.
Our skilled leasehold Conveyancers at iconvey advise that it is often the case that whenever they act for Buyers in a conveyancing transaction for the purchase of ex-council leasehold flats in Islington they discover that there are sizeable Service Charge Arrears as well as notices of sizeable amounts of major works planned for future years with the risk of of escalating Service Charge bills in the years ahead
It is important that when purchasing an ex-Council Leasehold flat in Islington that you use a conveyancer that is experienced in the sale and purchase of ex-Council Leasehold flats in Islington such as iconvey. A Conveyancer who is familiar with the purchase of ex-Council Leaehold Flats will make sure that all service charge invoices received from the Council are paid off on or before the Completion of the conveyancing transaction or that a significant sum of money is retained to cover any invoices which are outstanding in respect of the Leasehold flat or for works that are planned and haven’t been completed.
Conveyancers who are familiar with conveyancing transactions involving the sale and purchase of ex-Council Leasehold flats, such as our experienced Conveyancers at iconvey, will insist on seeing the Service Charge accounts for the last three years together with any notices received regarding planned works. From these our expert Conveyancers will look for trends and may also be able to work out what further charges there could possibly be in respect of the Leasehold flat in the next two years or so, and arrange for enough funds to be retained.