According to Propertymark research 94% of homeowners regretted buying a leasehold property. Having owned a leasehold property myself and worked as a property manager managing residential blocks, I can understand why this figure is so high. One of the most common problems amongst leaseholders is a lack of basic understanding of how a leasehold property works. 57% of the 1,000 leaseholders Propertymark interviewed admitted not understanding what being a leaseholder meant.
The biggest issue most people have with owing a leasehold property is paying service charge and ground rent. The ground rent is set out in the lease so should not come as a surprise when a landlord/managing agent sends a demand for this payment. Service charge, on the other hand, can be extremely unpredictable.
There are a lot of necessary items in service charge budget but there are savings that can be made. As a leaseholder you are entitled to question the charges set out within the service charge budget. The landlord/managing agent needs to be able to prove to the leaseholders that the charges are reasonable and competitive quotes have been gathered. If you, as a leaseholder, think that a cheaper alternative can be sought you are entitled to put this forward to the landlord/managing agent who will discuss the options with the Directors of the Resident Management Company.