I have had two experiences of leasehold.
It amazes me how people seem to want something for nothing. The breakdown of costs is not opaque, though it could be better presented. The biggest contributions (in round percentages) are:
15% major repairs sinking fund
10% staff costs (we have a part time scheme manager and share a compliance officer who does one day a week here)
10% buildings insurance
10% management costs
10% other sinking funds
10% communal utilities
5% day to day repairs
5% grounds maintenance and interior cleaning
The first started more than 40 years ago and was basically this. The developer held the freehold through a management company that was then acquired by the residents, each flat owner having one share. It worked quite well at first but got much harder when the leaseholds were acquired by buy to let landlords. We just regarded the ground rent as part of the management charges.My understanding is that the way to get sorted it would be to simply convert existing leaseholds into something like a share of a freehold or other similar systems. Arguably this is actually easier for older properties because those leases tend to be more symbolic / peppercorn anyway.
I'm now back on leasehold, but I wouldn't touch any of these with a bargepole. I'm now a shared owner with a housing association, who are the freeholder, and also have rental properties in the block. I've yet to see a convincing proposal for how to reform this.ut a lot of leasehold properties aren't just residential blocks but rather mixed-use residential-commercial blocks with supermarkets, shopping centres, offices or in upscale examples blocks with cinemas / gyms / hotels. A "collective responsibility" model doesn't work as well in blocks like these
My 2026/27 service charge notification is on my desk. The annual amount is about the same as this and I regard it as a bargain. I know someone recently retired from working in housing association finance and they were shocked how low it was.The core issue was not the ground rent, but the service charge which was just over £3500.
It amazes me how people seem to want something for nothing. The breakdown of costs is not opaque, though it could be better presented. The biggest contributions (in round percentages) are:
15% major repairs sinking fund
10% staff costs (we have a part time scheme manager and share a compliance officer who does one day a week here)
10% buildings insurance
10% management costs
10% other sinking funds
10% communal utilities
5% day to day repairs
5% grounds maintenance and interior cleaning
Our apartment block is on a larger development where the roads are still not adopted. A lot of this is about costs now v costs later. In the short term the council not adopting the roads suits both sides, because the development is new and doesn't need much maintenance. The big issues will come when things start to need big repairs and, for different reasons, neither the council or the developer will have the funds to pay for them. On the other hand, if and when our building needs major repairs, the housing association will have a sinking fund to pay for them.Absolutely. Local authorities are compounding the issue with non-adoption of roads on new developments.