The property market is
currently very unsettled so don't treat the "for sale" asking price as
the price you need to pay. It always pays to be bold
with your first offer - especially if the flat has been on
sale for a while. Richmond estate agents have seen
some amazingly cheeky offers being accepted recently, and
the worst that can happen is that you get your offer
rejected.
A significant factor in a flat's sale price will be the
number of years remaining on the lease - a short lease will
be much cheaper. Many leaseholders are open to
extending the lease period (the costs can range from £1,000
to £100,000 depending on the time remaining) but you should
not assume that it's a guaranteed opportunity. You
should always speak to a surveyor for advice on costs and
negotiating. The number of tenants owning the freehold
in a property is increasing in Richmond, sometimes shared
between all the tenants, or held by one of the tenants -
which can put a significant premium on the sale price, but
means that you have more control and responsibility.The
annual service charge can vary significantly in Richmond,
depending on the state of the property, the quality of the
managing agents and the facilities. If the flat has a
large communal area, for example, then the costs of
maintaining that communal area (cleaning, gardening,
security) need to be borne by the tenants, usually on an
equal basis. It also has to cover the costs of
building insurance, and paying a commission to the agents!
A
converted flat in a Victorian terrace house might have a
service charge of around £800-£1000 a year, whereas a modern
block with porter, lifts, underground parking etc might be
more than £2,500. Make sure that you're clear about
what the sale price includes - although it's often the
ground floor or basement flat that owns the garden, there
are several flats in Richmond where the ownership and
responsibility lies with the owner of the first floor flat.
The London Borough of
Richmond upon Thames will also expect you to pay your council tax bill -
and for the
majority of flats in Richmond that's between £1,500
to £2,000 per year for the entire flat, depending upon its
value. The difficulty in estimating this cost is that
the value is not based on the current sale price, but the
value of the property as of April 1st 1991.
If you're looking for a
little extra income to help pay the mortgage on your flat,
many Richmond home
owners are taking
advantage of the Government's 'Rent a Room' scheme. This
allows you to earn £4,250 a year tax-free from renting out a
room.
For information on the finer
details of buying a flat in Richmond - including mortages,
solicitors, and even council grants, click
here.
If you have local insight that you'd like to share with us,
that we can share with everyone else, please let us know -
contact information on the About Us
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