The Cost of a Decent Home –Large Increases in the Service Charges Imposed by Local Council in Islington

This can be a very common issue in the conveyancing of leasehold flats in Islington

Our skilled Leasehold Conveyancers have acted on a number of ex-council leasehold flats in Islington recently (especially in places such as Holloway,Bevin Court, Spa Green and advise that there exists a common issue: that regarding Service Charge. When carrying out 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 on account of government regulations 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 regulations have meant that Local Authorities throughout the UK including Islington London Borough Council, have had to embark on a massive programme of improvements to improve their housing stock.

Those who have purchased Leasehold flats in Council Blocks (mostly under the Right to Buy) are required under the provisions of their leases to pay contributions not only to the costs of day-to-day upkeep and repair of the block (Service charges) but in addition towards the costs of major works and renewals of the structure of the building, including the services and windows. This could also include costs in improving the building.

Such is the condition of the Council Blocks in Holloway,Bevin Court, Spa Greenwhere the Leasehold flats are located (on account of many years of neglect) that the works required to bring them up to the Decent Homes Standard are often extensive.

So How Does this Effect Potential 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 have found that the Seller has received notice of the works proposed as well as the cost of such works up to one year in advance. This could well be the key reason why they’re 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 done at the same time and there’s usually 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 every leasehold flat in the block.

Our expert leasehold Conveyancers at iconvey advise that it is all too often the case that when they act for Buyers in a conveyancing transaction for the purchase of ex-council leasehold flats in Islington they find there are significant Service Charge Arrears along with notices of sizeable amounts of major works planned for future years with the potential for of rising 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 proficient in the sale and purchase of ex-Council Leasehold flats in Islington such as iconvey. A Conveyancer who is experienced 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 considerable amount of money is retained to cover any invoices which might be outstanding in respect of the Leasehold flat or for works that are planned and have yet to be completed.

Conveyancers who’re 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 knowledgeable Conveyancers can look for trends and may be able to work out what additional charges there could possibly be in respect of the Leasehold flat in the next two years or so, and arrange for sufficient funds to be retained.