Peter Haler - Now is the time for leaseholders to act...

It seems strange to say, but the credit crunch is not all bad news. If you are an astute flat owner, the economic climate presents more opportunities than problems. You’ve been thinking about extending your lease? In the overheated market of recent years, it seemed both unnecessary for marketability and prohibitive in cost. Neither applies now. With flat prices in freefall, a short lease is a deterrent to sale. You need all the edge you can to shift the flat and a newly extended lease will help. The cost will be lower, too. If the flat is worth less today than it was last year then the premium for the new lease is likely to be reduced. The same applies to buying the freehold. Landlords might be in need of capital and so more willing to sell. Assuming access to funding, now is the time to act. The building industry is in bad shape with firms anxious for jobs. What better time to bring forward those major works you’ve been putting off for so long? Prices might be lower and you may be able to get a better-quality contractor. Similar principles apply to long-term contracts for maintenance or supply. You are in a good position to drive hard bargains. Now is the time to act. Increases in utility charges are a problem. Sometimes, flat owners can get an edge through negotiating long-term bulk contracts with suppliers. The block will generally need to be large to attract an effective bid but some managing agents are able to pool blocks into single, substantial contracts. Now is the time to act. Money is tight, so expenditure needs careful monitoring. Take a look at service charge levels. Do you receive regular accounts from your manager? With cost cutting on the agenda, there may be areas for challenge and savings. Leaseholders have the legal right to challenge service charges at the Leasehold Valuation Tribunal. Now is the time to act. If overall control of the building isn’t achievable through buying the freehold, maybe the credit crunch provides the incentive for the exercise of the statutory Right to Manage. The procedures are relatively simple and costs low. Now is the time to act. After all, a recession is just telling you to get your act together. Now is the time to act.