Buying apartment - fire audit and sinking fund

M

Mothergoose

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I am sale agreed on a 2004 apartment built by Glenkerrin Homes/Ray Grehan. My surveyor said there should have been a fire audit, but that has not been forthcoming from the other side's solicitors. There are 110 apartments in the development. My solicitor says the sinking fund is 90k, but couldn't tell me if this was for the whole development or just the block where the apartment I have gone sale agreed is. If it's for the whole development, it seems very low. There are lifts but no underground parking and not gated. Management fee is 1800 per year. The interior and exterior of block appear well kept. With no fire audit and what seems like a low sinking fund - should I run from this purchase?
 
The management company manages the whole development so unlikely to be just one block. I'd say 90k is not bad but 1800 seems quite high. You should ask for the accounts for last year and see where the money is being spent. It costs about 10 quid to see the accounts online. I presume the MC has to provide a fire audit. I have bought 2 apartments in the last 20 years and never requested nor received any unless the solicitor does it as par for the course.
 
Do not buy that without a fire audit. It is expected 100k apartments are defective at this stage. Lots of owners are getting saddled with remedial costs. Personal experience. Imo all solicitors dealing in these sales should not proceed without a full fire audit.
 
Yes !! get out while you can, you've identified serious issues

Buy a freehold property where you have 100% control and decision making power of everything relating to your own property.
 
Having recently carried out consultancy work for a property management company, I can tell you, very few of the 50 + developments in their care had a fire audit carried out. I would estimate around 10%. None the less, the apartments still sell and solicitors rarely insist on the audit (I do expect this to change in the future however).

There is a new government remediation scheme that opened to OMC's on Dec 11th 2023. This is for apartments and duplexes constructed between 1991 and 2013 and will allow for the funding of emergency fire safety works.

As a result of this scheme, I can only assume fire audits will now become more common, as it will not solely be down to owners to stump up the cash to remedy any faults. Previously, many owners simply did not want an audit, as it could open up a can of worms.

I would strongly suggest having a read through the scheme before you make a final decision.
 
Walk away. As previous poster suggests, if you can, buy a freehold property where you aren't beholden to management company or agents. We are in the midst of very challenging circumstances with our home in a celtic tiger estate... very difficult.
 
It’s a bit criminal how high management fees are. I’m happy about the mandatory fire audits, it makes sense to pay attention to making sure properties are up to code. Yes it’s an investment to have a property but you need to also realize it’s risk protection to be more cautious and put money into it by taking care of it
 
Did you progress on this or walk away?
 
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