Thursday 29 April 2021

Enfranchisement

I think I've mentioned this before - that the owners of the flats in this building are banding together to buy the building itself (the freehold). Essentially the current management company aren't really doing much managing, apart from sending extortionate bills. Well, the buying up is a go. I've just sent a very hefty deposit to get my shares in the company, and in the next few weeks I'll get an invoice for about £10,000 which will cover my part of buying the building.

Ouch but also yay! Just on its own this fee will increase the value of my flat by quite a bit. And straight after doing this, I will be able to pay £1 for a lease extension which should mean that I have added £20,000-ish to the property value. Not a bad deal all told, plus it will nix the hefty and ridiculous bills that they're sending, and they'll become bills we can control.

Most of the £10,000 will come from redrawing the advance on my personal loan, and the rest from my April pay. My bank said today they can refund all of my advance, touch wood. So all will be within my budget, although I'll be pushed back out to maximum debt. But I had to do this or miss the opportunity. Joining it later would be considerably more expensive. Deciding not to join at all would have ultimately meant my flat lost value.

I will still have to find the money for my share of the roof, which is a whole 'nother interesting quest possibly involving credit cards. We will see. I'll cope somehow even if I have to do that, I do enjoy ramen noodles after all!



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