Buying a home and don't know how anything works

[equationgirl]

Yes, assuming I go ahead I will be asking for it to be serviced (as I asked back in March as the annual service was due at the end of March and got a positive answer from the estate agent!) I found out what the charge thing was - they signed up to some boiler scheme which lasts until 2023 (pay annually) but it should be cancelled once it's sold.

That doesn't sound quite right. What scheme? If they pay annually I am unsure why there would be a charge on the property - a charge is usually for thousands of pounds. I think you should at least ask what the scheme is called.

 

[miss direct]

Its called A shade greener

 

[equationgirl]

miss direct if the boiler certificate ran out in march, it would have last been serviced in March 2020, probably just before the pandemic. Certificates are only valid for a year at a time.

 

[Elpenor]

I’ve got no advice. Other than to say good luck making the decision, whatever it is.

 

[miss direct]

miss direct if the boiler certificate ran out in march, it would have last been serviced in March 2020, probably just before the pandemic. Certificates are only valid for a year at a time.

Is it possible its just not been serviced at all?

 

[equationgirl]

Its called A shade greener

I did a Google search. First page of results has references to cases referred to ombudsman for running a dodgy repair scheme and incorrectly fitted boilers. Get a local gas Safe registered gas fitted to inspect the boiler as soon as you can. Best to know if it's dodgy now before you get the boiler condemned.

 

[equationgirl]

Is it possible its just not been serviced at all?

Yes. See my post about the scheme above.

 

[colacubes]

Yes this might work. Do agents get a set fee or a percentage? If it's a percentage then she may not be keen on getting it reduced.

The problem is I have no idea how much this roof cost is going to be...

They get a percentage of the final sale price. So if you pull out they get nothing unless they find another buyer sharpish. So it’s in their interest to be in your side to get their commission…

 

[kebabking]

it possible its just not been serviced at all?

It's possible...

There should be a sticker on the boiler with a list of dates that engineers have written down as service dates.

The easiest way of seeing if the boiler works is to turn on the heating and hot water. If it works it works, and if not, it doesn't. I wouldn't get sweaty about having the boiler serviced, it'll be about £100, and you've then got a plumber who's got you in his book as an existing customer - which when your heating packs at in the middle of January is worth far more than a measly £100....

The roof is something I'd go into bat for, and given all the crap - lack of carpets, the boiler servicing thing, and now the roof, I'd be very seriously thinking about reducing your offer down to the asking price. You are a sellers dream - cash buyer, with no chain - if they don't offer to meet you half way, they are either fuckwits or not really serious, and you don't want to be involved with either....

(Do check the local prices though, if they've increased significantly since they accepted your offer they may decide to just say 'no thanks' and try to sell it to someone else for more money - everything is a risk, it's just about deciding which risks you can live with and which you can't....)

 

[miss direct]

Theres not much for sale that's similar.

My offer is actually 8,350 over the guide price. But I've heard that in Sheffield its common for agents to put homes on for a lowish guide price to attract attention.

 

[cybershot]

That doesn't sound quite right. What scheme? If they pay annually I am unsure why there would be a charge on the property - a charge is usually for thousands of pounds. I think you should at least ask what the scheme is called.

Perhaps the boiler is newish and it cost a few grand so they've been paying it off monthly, and for some reason stopped paying. Perhaps it's shoddy!

A normal boiler cover scheme costs less than £100 a year and usually includes servicing, so the fact the charge is related to the boiler, seems another bizarre one.

Hopefully it's just a case of totally inept sellers who have no common sense. Between them and solicitors, it's no wonder this is dragging on and on and on........

 

[Epona]

As others have said, you can check this yourself with the council - they have to go through a consultation process with leaseholders in the run up to major works and will provide any info they have already sent to leaseholders.

Whether you will be able to get an estimate of cost is another thing though. Your lease (which you may have been sent a copy of by now) will have details of what % of cost you are responsible for- this may NOT be evenly distributed across the entire block or estate (eg. I live in a low rise terraced estate which mostly have 6 flats per separate block as determined by sharing a common entrance, but my block only has 5 so the overall cost to me is slightly higher than in blocks on the estate with 6 flats). Last time we had major works done here, we were billed for it coming up to 7 years later and it was eyewateringly expensive and £4k more than we had been estimated.

I do not say this to put you off - but rather get all the information you can now so that you can be as informed as possible.

If you are buying the place cheap then the sale price probably already takes into account the likely cost of those works.
(It is wrong that you only found out about it at this late stage though, this is info that you should have been provided early on IMO).

 

[miss direct]

There are 12 flats in my block and I imagine they are all the same size and layout (can't imagine how they couldn't be).

I have lots of paperwork from the council in my pack relating to the roof, none of it with costs (other than the overall tender).

When I say it's cheap, I mean in comparison to other parts of the country, not particularly for this property. Makes me sob knowing that the house I live in right now (terraced, four floors, huge attic room, garden) cost only £90,000 and the landlord gets £1,700 a month from us.

 

[mauvais]

Look up A Shade Greener. There are various companies but one sold solar panel contracts and then went bust. I would want to understand that situation better ASAP.

 

[Riklet]

Its def important to find out how much these works will cost. But honestly, split between 12 you probably will be ok... and at least you know about it now. You said you didnt buy at the very limit of your budget so maybe this is just something you need to factor in. But if it was 10k say... would that really change things for you?

Regarding negotiating on price etc it's hard to advise because it depends on you and your risk aversion etc. But my honest opinion is that as you are a cash buyer offering 8k over the asking price, there's no way they'll say no and want the deal to fall through at this stage. You could easily flex your muscles. I know it's stressful but It's good all this stuff has come up from the searches - you do need to be informed. Hopefully the lawyer will talk you through it and what theyve dug up, although there may well not be an exact figure available for the works yet.

I hope you can move out of your current place to another more stable place anyway because you dont want to feel rushed or pressured with the sale.

 

[miss direct]

Look up A Shade Greener. There are various companies but one sold solar panel contracts and then went bust. I would want to understand that situation better ASAP.

I've been looking through their website and think I will give them a call on Monday, tell them I am buying a property with one of their boilers and would like more information/history.

How does split between 12 work when some are council owned and some have been bought? I'm assuming it would still be "split" 12 ways even if the tenants aren't actually paying.

Also really surprised the lawyer didn't think it worthy of giving me a ring to talk me through any of this, but I suppose I have the weekend to ponder over it.

I've just been looking up flats to rent. I don't have a stable income at the moment so not even sure I would pass whatever checks you need to rent a flat. Just so fed up of it all.

 

[Riklet]

You'll find somewhere to rent dont worry! Spareroom is quite good. Might be good sharing with some non psychos haha. Sheffield is cheap as chips clearly, so dont get too bothered about it.

 

[Epona]

I've been looking through their website and think I will give them a call on Monday, tell them I am buying a property with one of their boilers and would like more information/history.

How does split between 12 work when some are council owned and some have been bought? I'm assuming it would still be "split" 12 ways even if the tenants aren't actually paying.

Also really surprised the lawyer didn't think it worthy of giving me a ring to talk me through any of this, but I suppose I have the weekend to ponder over it.

I've just been looking up flats to rent. I don't have a stable income at the moment so not even sure I would pass whatever checks you need to rent a flat. Just so fed up of it all.

It will be in the lease detailing the exact way it is split, but typically yes it will be split between all properties including both tenants and leaseholders, leaseholders pay their share to the council and the council "pays" the cost for the tenants as they are the landlord - tenants are not responsible for any share of anything as they are only renting, so the council as their landlord pays for -or rather absorbs the cost of - their "share"

(So if there is a bill of £70k for a block of 10 properties typically it will be evenly split between them, if 3 of those are leaseholders, each of those 3 leaseholders will typically pay £7 to the council, the tenants of course do not because it is their landlord's - the council's - responsibility. But you do need to check what it says in the lease about how costs are split.)

 

[scifisam]

It will be in the lease detailing the exact way it is split, but typically yes it will be split between all properties including both tenants and leaseholders, leaseholders pay their share to the council and the council "pays" the cost for the tenants as they are the landlord - tenants are not responsible for any share of anything as they are only renting, so the council as their landlord pays for -or rather absorbs the cost of - their "share"

(So if there is a bill of £70k for a block of 10 properties typically it will be evenly split between them, if 3 of those are leaseholders, each of those 3 leaseholders will typically pay £7 to the council, the tenants of course do not because it is their landlord's - the council's - responsibility. But you do need to check what it says in the lease about how costs are split.)

Which makes sense, because private tenants wouldn't be liable for the charges either. It's all down to the owners.

Sorry this has thrown a spanner in the works, missdirect. I think you really have to put yourself in the mindset of being willing to pull out if necessary. There were other flats you liked, weren't there?

 

[Epona]

Also I noticed recently that you said you work away from home from time to time - if you plan on having a paying tenant while you are working away, you need to check the council's policy on this - here for example if you sub-let an ex-council leasehold flat, it is permitted but you have to apply for and pay for a license from the council (not sure how much it costs, but you should check for clauses about subletting in the lease too and check for any costs on the council website if you plan to do that)

(Lodgers while you are occupying the flat is not usually an issue however)

 

[20Bees]

A Shade Greener – ASG boilers – Everlasting Boilers – Maintenance and repair to boiler***Refund FOS***

I foolishly signed up to a 10 year boiler purchase which included a separate monthly payment for the service, repair and maintenance of this boiler once installed. This was supposed to include a yearly service and all repairs to the boiler which would give me complete peace of mind. During the in...

www.consumeractiongroup.co.uk

Perhaps this is the sort of scheme the vendors had signed up to?
All the more reason to use a decent independent heating and boiler engineer, and to get them to service the boiler ASAP so you know what you’re dealing with, and so you are already a customer (of the independent heating engineer) before it breaks down. With a good local firm there should never be any pressure to commit to a contract for the yearly service and any repairs. Better to stash the equivalent into a rainy day fund for future repairs - the actual service really shouldn’t cost a fortune.
I’m not in your area but my boiler engineer was warmly recommended when someone else asked on the village Facebook group for recommendations, he and his small family team are treasures and it is a huge comfort to be a regular customer of such a good tradesman! I live alone and have no friends or family within 100 miles or so who could help out in a boiler crisis.

 

[miss direct]

Which makes sense, because private tenants wouldn't be liable for the charges either. It's all down to the owners.

Sorry this has thrown a spanner in the works, missdirect. I think you really have to put yourself in the mindset of being willing to pull out if necessary. There were other flats you liked, weren't there?

I didn't go and view any others. Yeah there were a few places I liked online but all sold now.

 

[miss direct]

People saying I should get the boiler serviced/checked, do you mean before purchase, or after? Means I need access to the property again, ie going through the estate agent. I'm getting a bit muddled up now about the best order in which to deal with all this on Monday.

 

[Epona]

Because I think I've been a little negative, I'm going to go over the benefits of having an ex-council leasehold property:

1. Typically cheaper to buy than similar flats in the area
2. Usually very much larger, especially if built as post-war social housing - large rooms, purpose built bathroom, no awkward space that you might get from a Victorian conversion
3. If external work needs doing, you don't have to faff about finding contractors and dealing with them personally - the council deals with it then bills you

 

[Epona]

People saying I should get the boiler serviced/checked, do you mean before purchase, or after? Means I need access to the property again, ie going through the estate agent. I'm getting a bit muddled up now about the best order in which to deal with all this on Monday.

Honestly I have never had the boiler checked before buying somewhere - it is typically just a safety check that costs £130-£150 to make sure it isn't pumping out carbon monoxide and you can get that done yourself before you move in or when you move in (you can get a CO alarm for a few £ if you are worried about it).

It is fairly safe to assume that most boilers over about 10 years old are going to need replacing at some point over the next few years, I don't see it as something that would make or break a house sale either way tbh.

 

[Epona]

Because I think I've been a little negative, I'm going to go over the benefits of having an ex-council leasehold property:

1. Typically cheaper to buy than similar flats in the area
2. Usually very much larger, especially if built as post-war social housing - large rooms, purpose built bathroom, no awkward space that you might get from a Victorian conversion
3. If external work needs doing, you don't have to faff about finding contractors and dealing with them personally - the council deals with it then bills you

Oh also add to this that the service charge is usually pretty stable and is something that is publicly accountable.
Ground rent will probably stay the same (and low) for the entire duration of the lease

 

[Puddy_Tat]

here for example if you sub-let an ex-council leasehold flat, it is permitted but you have to apply for and pay for a license from the council

not heard of that (although as you say it's local and broadly sounds a good idea) - although aware that some leasehold flats it is a condition of the lease that you can't rent the whole place out

(Lodgers while you are occupying the flat is not usually an issue however)

and depends just what 'occupying' means - working away for a short time may not be an issue if you keep it as your main address (e.g. stay registered with local GP and so on)

a while ago i had a lodger here, albeit only during the week (and not always all that much) and enquired with the council tax people as i didn't want to keep quiet and risk getting done - they said if he was still registered with GP and that sort of thing at his home address, it didn't count.

Because I think I've been a little negative, I'm going to go over the benefits of having an ex-council leasehold property:

broadly, i'd agree.

i thought 90 quid a year service charge (which basically means they have the grass cut badly a couple of times a year and send me a bill every year) was a bit much until i saw the service charges on some private flats...

some councils are either completely crap at maintenance or regard leaseholders as a cash cow (and in some cases both) - mine's fairly reasonable.

there appears to be a council leaseholders' forum in sheffield (think the one here has given up) which is more than you get with most private leaseholds.

 

[miss direct]

The next door neighbour rents to students, and I've seen other properties on the street up for rent, so I don't think that's an issue in this case.

The ground rent (£10) and service charge (£250 something) are reasonable.

 

[Elpenor]

Something occurred to me… If you’re a cash buyer you will have no mortgage, so in theory the ground rent, service charge and payment for major works such as these every so often.

So you could save the money you were spending on rent and now don’t need to spend on a mortgage towards your own sink fund for the major works.

And think about asking for a lower price, given these late revelations. Ask for 6k off but be happy to settle for 4k off (or whatever).

 

[Epona]

not heard of that (although as you say it's local and broadly sounds a good idea) - although aware that some leasehold flats it is a condition of the lease that you can't rent the whole place out



and depends just what 'occupying' means - working away for a short time may not be an issue if you keep it as your main address (e.g. stay registered with local GP and so on)

a while ago i had a lodger here, albeit only during the week (and not always all that much) and enquired with the council tax people as i didn't want to keep quiet and risk getting done - they said if he was still registered with GP and that sort of thing at his home address, it didn't count.



broadly, i'd agree.

i thought 90 quid a year service charge (which basically means they have the grass cut badly a couple of times a year and send me a bill every year) was a bit much until i saw the service charges on some private flats...

some councils are either completely crap at maintenance or regard leaseholders as a cash cow (and in some cases both) - mine's fairly reasonable.

there appears to be a council leaseholders' forum in sheffield (think the one here has given up) which is more than you get with most private leaseholds.

I have never had any issues having lodgers in council leaseholds personally - as long as it is your main residence, that sort of thing is a private arrangement (and often isn't even taxable up to a certain amount of rent income)- obvs. if you moved elsewhere that becomes subletting and liable for any local regulations in place from the council or income related in terms of HMRC.

My service charge here is currently around £1,100 a year which covers regular maintenance for communal outside areas including gardening/maintenance of the trees and shrub borders plus weekly cleaning of communal internal stairways and hallways, there is an admin component of course but I don't think £1.1k is too bad considering. Ground rent is £10 p.a.