Leasehold agreement - Internal alterations

Mekrel

Mekrel

Mekrel

Soldato
Joined
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Buckinghamshire
Hi all,

Currently going through the process of buying my first place which is a 2 bed, leasehold flat.

Just reading through the draft lease, I came across the following condition:

6 Internal Alterations
The Tenant must not make any internal non-structural alterations to the Flat unless he first:
6.1 obtains and complies with the necessary consents of the competent authorities and pays their charges for them;

6.2 makes an application to the Landlord for consent, supported by such drawings and specifications as the Landlord may reasonably require; and

6.3 pays the reasonable fees of the Landlord, any head Landlord, any mortgagee and their respective professional advisors.
Click to expand...

Now, I understand it's in the interest of the Landlord that flat owners don't go making alterations that adversely affects the value and desirability of the flat and is why such a clause exists. I just wanted to check if this is a common clause found in most Leasehold contracts? Would installing a TV bracket for example class as an internal non-structural alteration? It's quite vague.

Obviously I've asked my solicitor but just wanted to gauge other people's experiences.
 
Buying...

Leasehold, walk away
Not allowed to make alterations to your own property, walk away
"pays the reasonable fees of the Landlord, any head Landlord, any mortgagee and their respective professional advisors" Run away!


Now I'm not sure if this is just me, but the above just sounds like renting in all honesty :/
That last bit being pay "what we feel like we can stuff in"

Wouldn't be for me Im afraid
 
Lol that final clause is horrible.

pays the reasonable fees of the Landlord, any head Landlord, any mortgagee and their respective professional advisors.

Sounds like you could be basically charged a shedload. Pay for all his legal advice, as well as potentially another "head landlords" costs which could also include his own independent advisors.
 
~Divine~Wind~ said:
Buying...

Leasehold, walk away
Not allowed to make alterations to your own property, walk away
"pays the reasonable fees of the Landlord, any head Landlord, any mortgagee and their respective professional advisors" Run away!


Now I'm not sure if this is just me, but the above just sounds like renting in all honesty :/
That last bit being pay "what we feel like we can stuff in"

Wouldn't be for me Im afraid
Click to expand...

Completely understand that view point, but despite the fact I earn a decent salary & have £40k in savings - I'm left looking at new build flats to get help to buy (salary x 4, plus deposit, stamp and other fees). This is because I live and work in a SE town where house prices are increasing 11% YoY. The only other choice was to buy something ~£230k and where I live there are studio apartments going for £200k...

Obviously this is my starter home and I'm not planning on staying there forever, therefore not being able to make massive changes isn't that much of an issue to me.
 
Mekrel said:
That's what I'll do, but it was just an example. It's just that clause is very vague - you could potentially say that hanging a picture could fall under that.
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Personally i think you would be fine with a TV wall bracket and you can always fill the holes after and give it a lick of paint.
 
#Chri5# said:
Leasehold is quite common on flats isn't it? Calling @Skillmister...
Click to expand...
Summoned. Yes it is, the "do not buy leasehold" comments do not apply to flats. In fact its quite the opposite, you don't want to be buying a freehold flat! I'll address some points in turn, with limited enthusiasm :o...

Mekrel said:
Now, I understand it's in the interest of the Landlord that flat owners don't go making alterations that adversely affects the value and desirability of the flat and is why such a clause exists. I just wanted to check if this is a common clause found in most Leasehold contracts? Would installing a TV bracket for example class as an internal non-structural alteration? It's quite vague.

#snip#
Click to expand...

Those type of clauses are found in most flat leases. In fact you'd be hard pressed to find a modern lease in anything but a house conversion without them, it tends to only be older ones that would today be considered outdated that might not have them.

They are generally that vague but you can be pretty certain they are being designed to restrict things like removals of non-load bearing walls, new bathrooms, rewiring etc.. and not hanging pictures or tv brackets.

rexehuk said:
Lol that final clause is horrible.

pays the reasonable fees of the Landlord, any head Landlord, any mortgagee and their respective professional advisors.

Sounds like you could be basically charged a shedload. Pay for all his legal advice, as well as potentially another "head landlords" costs which could also include his own independent advisors.
Click to expand...

Yes, you could be charged a shedload. In reality though its never likely to actually matter as if you wanted to make substantial changes to your property its unlikely you'd be buying a flat in the first place. And should they be required, there are statutory powers for these fees to be reasonable. A colleague of mine has just successfully challenged a landlord and their legal advisor that wanted £1500 to print out a consent document :p


~Divine~Wind~ said:
Now I'm not sure if this is just me, but the above just sounds like renting in all honesty :/
Click to expand...

Buying a flat IS renting. It sucks but that's the reality until the system changes. But those clauses are there fore everyone's benefit. I can't say I'd want to be living in a block of flats where every DIY expert had free reign to knock walls out as he pleases!

~Divine~Wind~ said:
Leasehold, walk away
Not allowed to make alterations to your own property, walk away
Click to expand...

mickyflinn said:
Leasehold dont do it.
Click to expand...

Please go.
 
Thanks for the information, much appreciated! The amount of documents I've been sent from the builder's solicitor is crazy, having to triple check and re-read everything. :)
 
slightly off-topic, but what clauses in the lease, limit/control the annual leasing fees ?
... on new flat builds, are builders similarly looking on leases as a source of revenue, like the poor house purchasers who have inadvertently 'signed up for' leases
 
jpaul said:
slightly off-topic, but what clauses in the lease, limit/control the annual leasing fees ?
... on new flat builds, are builders similarly looking on leases as a source of revenue, like the poor house purchasers who have inadvertently 'signed up for' leases
Click to expand...

This one is flat rate £150 increase every 25 years; quite reasonable considering the other increases in other contracts I've read about such as doubling every 10 years.
 
Have you considered shared ownership?

Mate in London done that for 20% stake with similar deposit and has made a fair bit on his portion of ownership.

Of course this was two years ago and it's seen a tidy bump.

At least then you own something permanent, even if it's only a share. Downside is rent + mortgage to pay, depends if you are able to do so.
 
I think on a new build a leasehold isn't going to cause issues, you need to have your eyes open to the extent of the property you are all looking after (ie shared grounds, garages, roof etc) but its to be expected in a property where you all need the roof to be good and if the one below you knocks down a wall to make an open plan living room the whole thing falls down. I had to write to mine and pay money for permission to change one window for example but shelves and holes for cables etc were never at issue.

In later times things like new windows and a roof start to sting a little, you know yours need doing for example but can't and when the leaseholder decides to do them it turns out its more expensive than it would have been to just do yours even though the bill is split. Or they replace a garage wall / path for a bit on the other side of the block that you don't use but you still get hit for a 2k bill. Or the leaseholder changes to a rubbish one who charges but doesn't maintain and people start leaving sofa's out the front.

Yes, personal experience :)
 
Don’t worry about leasehold in flats, especially with a new build flat.

You’ll be able to redecorate (i.e put up a TV bracket) without issue and I wouldn’t even worry too much about changing kitchens and bathroom fittings (although you won’t need to if it’s brand new). It’s not a rental flat where you can’t even hang a picture on the wall without risking your deposit!

When I wanted to open up a stud wall to create a bit more room in my old flat (90’s block in Brighton Marina) I had to jump through some hoops and pay some money, but I was always able to do the work. It was definitely worth going through the motions rather than winging it as it made selling it much smoother.

The only time I’d avoid a leasehold flat is if the lease was very short or very expensive to renew.
 
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