Second home in UK
Mar 19th 2016, 10:05 pm
#31
Was in Canada, now home.
Joined: Aug 2011
Location: Devon
Posts: 3,388
Re: Second home in UK
It's an American word for "leasehold", thats all. If you own a flat in the US it is called a condominium ("condo" is the short form), many townhomes (terraced houses) are also condos, and there are even semi-deptached and detached houses sold as condos. While condos are generally, but not always, "nicer" than apartments, the two are essentially the same sort of building distinguished only by thUTe legal ownership structure. With a condo you own only the interior; the exterior shell, including the roof and grounds, is owned jointly by all the owners through the condo association.
Unlike the UK where the accumulation of funds to pay for external repairs, including the roof, can be a bit hit or miss, generally condos are fairly well organized, with a "board" of residents, an account to accumulate funds for repairs, and often a managing agent to handle the collection of monthly fees and manage repairs, maintenence, of the building and "common areas" including the lobby, hallways, elevators and stairs, as well as any lawns, landscaping, paths and access roads and might include a gym, pool, lounge, etc.
As you can probably imagine the monthly fees can be quite substantial. My manager has a condo townhome with no shared amenities, but pays $350 a month in fees to the condo association, and even that doesn't eliminate the risk of him being "assessed" for his share of major repairs - a current quote for a new roof would entirely wipe out the repairs and maintenance fund and so he is expecting lump sum charge of about $5,000-$6,000 towards the cost of a new roof, ..... and likely an increase to his monthly charge to try to prevent future shortfalls.
Unlike the UK where the accumulation of funds to pay for external repairs, including the roof, can be a bit hit or miss, generally condos are fairly well organized, with a "board" of residents, an account to accumulate funds for repairs, and often a managing agent to handle the collection of monthly fees and manage repairs, maintenence, of the building and "common areas" including the lobby, hallways, elevators and stairs, as well as any lawns, landscaping, paths and access roads and might include a gym, pool, lounge, etc.
As you can probably imagine the monthly fees can be quite substantial. My manager has a condo townhome with no shared amenities, but pays $350 a month in fees to the condo association, and even that doesn't eliminate the risk of him being "assessed" for his share of major repairs - a current quote for a new roof would entirely wipe out the repairs and maintenance fund and so he is expecting lump sum charge of about $5,000-$6,000 towards the cost of a new roof, ..... and likely an increase to his monthly charge to try to prevent future shortfalls.
Mar 19th 2016, 10:10 pm
#32
Was in Canada, now home.
Joined: Aug 2011
Location: Devon
Posts: 3,388
Re: Second home in UK
I noticed that in Canada terraced houses (what they call 'row houses') are often held on a condominium basis. That would not happen in the UK, unless there was also some communal ground.
Mar 20th 2016, 12:07 am
#33
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,528
Re: Second home in UK
Not necessarily, there are leashold terraced houses in the UK. About 20-25 years ago there was an impending crisis where houses built in the late 19th century were on 99 year leases and the leases were about to expire, leaving people with the threat of being evicted. A new law was enacted shortly after the story hit the headlines, giving people the right to extend their lease. It is now common, I hear, for the owners of leashold property to keep "topping up" the lease to ensure that there is always and extremely long time left on the lease.
Mar 20th 2016, 12:36 am
#34
Was in Canada, now home.
Joined: Aug 2011
Location: Devon
Posts: 3,388
Re: Second home in UK
I think, actually, those people were given the right to buy the freehold. My partner at that time (in both senses of the word) was a specialist in property law, and cut his teeth converting old long leases into freeholds. But, my memory is hazy on this; it wasn't my field.
Mar 20th 2016, 12:55 am
#35
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,528
Re: Second home in UK
I think, actually, those people were given the right to buy the freehold. My partner at that time (in both senses of the word) was a specialist in property law, and cut his teeth converting old long leases into freeholds. But, my memory is hazy on this; it wasn't my field.
Mar 20th 2016, 1:25 am
#36
Was in Canada, now home.
Joined: Aug 2011
Location: Devon
Posts: 3,388
Re: Second home in UK
I think there was a right to buy in the earlier law, but as I said, my memory is not reliable on this.
What I do remember, is that there were a lot of late Victorian terraced houses in London, and possibly elsewhere, that had been held on long leases which started to expire. There was legislation to deal with it, and I'm fairly certain that most people were enabled to buy their freehold at a low value. I think the law actually only gave them a right to renew the lease, but since the ground rent was very low, this meant the value of the freehold was also very low, so it was very affordable for the tenant.
But I might be remembering it all wrong.
What I do remember, is that there were a lot of late Victorian terraced houses in London, and possibly elsewhere, that had been held on long leases which started to expire. There was legislation to deal with it, and I'm fairly certain that most people were enabled to buy their freehold at a low value. I think the law actually only gave them a right to renew the lease, but since the ground rent was very low, this meant the value of the freehold was also very low, so it was very affordable for the tenant.
But I might be remembering it all wrong.
