Things to know before buying leasehold - Part 2

We continue to receive a huge number of enquiries from buyers and new owners about leasehold properties. Sadly it seems few people are available to help with the purchase process, and fewer still are willing to have a conversation about potential concerns, pitfalls and problems associated with leasehold ownership. We have therefore prepared a 7-part series to give some more information and insight for those that own, or are considering acquiring, a leasehold property.

Communal living

One key aspect of leasehold property is communal living. Whereas a detached house may sit in a large plot of land, leasehold properties tend to have multiple flats stacked on top of each other above a single plot. This compressed occupation can lead to relatively confined spaces between neighbours; instead of being separated by gardens and hedges, there may be only a thin wall or a single floor between two flats, with a range of shared services for all residents to use.

The below considers some of the challenges and benefits of this unique setup, and how to make the most of your leasehold property.

Neighbours

Residents in leasehold flats invariably live closer than comparable residents along a street of houses. Even with freehold housing estates, each home tends to be physically closer than on independent roads, and with this often comes several challenges. Some issues that arise with close proximity are disturbances becoming more prevalent, such as with loud noise (music, moving furniture or work) or smoking (the smell affecting those nearby). While these issues can crop up quite often, the simplest solution tends to be speaking with your neighbours to raise your concerns. If approached in the correct manner, a short and friendly conversation can be enough to resolve a problem that more often than not, your neighbour wasn't even aware they were causing.

The benefit of nearby neighbours is that, generally speaking, help is always on hand. You are likely to have someone very close to home to help you with an urgent problem, or give advice on that pesky thermostat that you just can't get to work - and you never know, perhaps make some friends along the way.

Despite potentially easy solutions, if you are not accustomed to the occasional noise disturbance or possibly loud celebrations during popular events, communal living with such close neighbours may not be the best option for you.

Security

The benefit of so many residents in a small space is that security is often enhanced, because there are many people watching for intruders or suspicious behaviour. This also makes it harder for criminals to break in, so deters negative behaviour in the first place.

That said, more residents can also increase the risk of people propping open doors, or sharing entry codes with friends and guests. This can sometimes reduce security for the property, although overall the large number of people tends to make blocks of flats safer than individual houses.

Parking

The abundance of vehicles in the UK nowadays is a problem and a challenge in and of itself. Where people store them when not in use is even more of a headache, and can be very emotive and stressful when people are searching for somewhere to park. As time moves on, estates seem to be built with fewer and fewer parking spaces available - while this promotes public transport, this isn't always convenient for everyone and many residents still rely on vehicles. As of 2023, the average number of vehicles per household exceeds 1.2, meaning 5 spaces are required for every 4 properties. This can of course change locally, but does suggest most homes require more than one parking space - something many house-builders (and indeed residents) don't consider before completing on a property. Be sure to check the arrangements are suitable for you before moving into a property with inadequate parking; this will avoid most problems altogether!

Again, if you notice parking problems the most effective solution tends to be a short conversation with the person responsible, to highlight your concerns and suggest an alternative. This will resolve the problem in the vast majority of cases.

Failing that, it is important to understand what parking is available and to who, and any relevant restrictions. This should be guided by your property contract (lease or transfer agreement). If the offender continues to cause problems, it may be worth speaking with your managing agent and considering whether parking control or other enforcement measures can help address the matter. As above, speaking with the person responsible for the problem and perhaps highlighting possible enforcement may deter them from causing a problem, and avoid the issue of parking control for all the residents.

Heating

Some properties can run on shared heating or water facilities. This can be as simple as a shared boiler that then feeds all flats in the building. It is important to understand the setup, who is responsible for regular maintenance and repairs, and how the service is divided and paid for. It may also be worth checking what individual adjustments can be made, which your neighbours or managing agent may be able to help with.

Blocks of flats also tend to be warmer than houses, simply through the general absorption of heat into communal areas. While this will probably reduce your heating bill (especially over winter) you may also find that it can get too hot at times, if you're someone who prefers a cooler environment. This may be something you can discuss with your neighbours and agree to change, or with shared systems it may be that the engineers need to correct a setting - but in any case, remember you may need to compromise along with others to reach a convenient solution.

Utilities

Most blocks of flats have electricity and water meters located in a shared meter cupboard, or riser cupboard. These will normally be on the ground / basement level, or on the same level as the flat they supply. While some buildings provide keys to all residents, larger buildings tend to restrict access due to security and tampering issues, so you will just need to find out how you go about obtaining meter readings and accessing your meter if you need to.

You may also find that services such as water can be shared entirely, so you might not even have a separate water meter and could just receive a portion of the bill through a shared service charge. This can be beneficial if you use a lot of water, but if you're someone who uses less water or perhaps is not home very often you may find your bills are higher than they used to be.

In all the above scenarios, it is important to remember that you will inevitably experience some minor inconvenience or change to usual process, just by living in a shared estate. That said, with a little patience, communal living can be an excellent and rewarding option that reduces hassle and problems for all residents, and gives you access to a community you can join and make the most of. Whenever you are looking at moving, be sure to check on the setup of your new property to ensure it meets your requirements for all of the above topics.