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    • travelmonster
    • By travelmonster 13th Jul 17, 11:45 PM
    • 113Posts
    • 3Thanks
    travelmonster
    buying a council flat ?
    • #1
    • 13th Jul 17, 11:45 PM
    buying a council flat ? 13th Jul 17 at 11:45 PM
    is it worth buying a council flat block of r 20 flats in 5 story I'm London using the right to buy discount ? also after 5 years it could be sold ?

    is it worth buying a council flat ? in terms of saleability etc ? what's the general consensus?
Page 1
    • elsien
    • By elsien 13th Jul 17, 11:55 PM
    • 15,282 Posts
    • 38,362 Thanks
    elsien
    • #2
    • 13th Jul 17, 11:55 PM
    • #2
    • 13th Jul 17, 11:55 PM
    Far too vague a question. I've seen some council flats I'd happily buy and others I wouldn't touch with a barge pole.
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
    • glosoli
    • By glosoli 14th Jul 17, 12:11 AM
    • 673 Posts
    • 386 Thanks
    glosoli
    • #3
    • 14th Jul 17, 12:11 AM
    • #3
    • 14th Jul 17, 12:11 AM
    I guess the general consensus is proceed with great caution. Check other threads on this forum where buying a council flat has led to massive repair and maintenance bills. Also you would be giving up what otherwise is a secure tenancy.
    • travelmonster
    • By travelmonster 14th Jul 17, 12:25 AM
    • 113 Posts
    • 3 Thanks
    travelmonster
    • #4
    • 14th Jul 17, 12:25 AM
    • #4
    • 14th Jul 17, 12:25 AM
    I should have clarified this info is for my mate. he wants to move out in a few years.
    • travelmonster
    • By travelmonster 14th Jul 17, 12:18 PM
    • 113 Posts
    • 3 Thanks
    travelmonster
    • #5
    • 14th Jul 17, 12:18 PM
    • #5
    • 14th Jul 17, 12:18 PM
    has anyone else successfully sold a council flat in London for profit ?
    • Lilla D
    • By Lilla D 14th Jul 17, 1:30 PM
    • 316 Posts
    • 161 Thanks
    Lilla D
    • #6
    • 14th Jul 17, 1:30 PM
    • #6
    • 14th Jul 17, 1:30 PM
    Plenty of examples from clients. You (your mate...) buy with a discount and unless prices really crash, you walk away with a profit after 5 years even after accounting for inflation, costs etc. But as per above, it all depends on the property itself, how easy it is to find a lender for it, what repair bills you might face, what the service charge will be, how long a lease you get with it, etc.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • travelmonster
    • By travelmonster 14th Jul 17, 2:46 PM
    • 113 Posts
    • 3 Thanks
    travelmonster
    • #7
    • 14th Jul 17, 2:46 PM
    • #7
    • 14th Jul 17, 2:46 PM
    Plenty of examples from clients. You (your mate...) buy with a discount and unless prices really crash, you walk away with a profit after 5 years even after accounting for inflation, costs etc. But as per above, it all depends on the property itself, how easy it is to find a lender for it, what repair bills you might face, what the service charge will be, how long a lease you get with it, etc.
    Originally posted by Lilla D
    oh cheers for the info there ! who will determine repair charges ? and lease amount? also what is service charges ?
    • elsien
    • By elsien 14th Jul 17, 3:46 PM
    • 15,282 Posts
    • 38,362 Thanks
    elsien
    • #8
    • 14th Jul 17, 3:46 PM
    • #8
    • 14th Jul 17, 3:46 PM
    The process and information about leases etc in here.

    https://www.gov.uk/government/publications/thinking-of-buying-your-council-flat--2
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
    • travelmonster
    • By travelmonster 15th Jul 17, 12:39 PM
    • 113 Posts
    • 3 Thanks
    travelmonster
    • #9
    • 15th Jul 17, 12:39 PM
    • #9
    • 15th Jul 17, 12:39 PM
    cheers for that elesien
    • forgotmyname
    • By forgotmyname 15th Jul 17, 12:59 PM
    • 26,015 Posts
    • 10,371 Thanks
    forgotmyname
    Wifes friend bought a Council flat and had to extend the lease to sell it, £16,000. And she has to pay a service charge/yearly fee.

    Estate agent valued it at the same value the houses across the road were being sold for. Even she thought they were mad with the valuation.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • travelmonster
    • By travelmonster 15th Jul 17, 2:33 PM
    • 113 Posts
    • 3 Thanks
    travelmonster
    Wifes friend bought a Council flat and had to extend the lease to sell it, £16,000. And she has to pay a service charge/yearly fee.

    Estate agent valued it at the same value the houses across the road were being sold for. Even she thought they were mad with the valuation.
    Originally posted by forgotmyname
    did she find a buyer ? or is she is in the process of selling it ? as to the service charge . is that just like a ground rent ? and was it proportionate or a rediculous figure ?
    • goodwithsaving
    • By goodwithsaving 15th Jul 17, 3:00 PM
    • 680 Posts
    • 1,022 Thanks
    goodwithsaving
    Speak to the council, get some more information. Too many variables / unknowns and they may help get you clued up on that particular property and the way leaseholds operate.
    Personally, I won't touch former council properties with a bargepole especially if leasehold.
    Every time you borrow money, you’re robbing your future self. –Nathan W. Morris
    • forgotmyname
    • By forgotmyname 15th Jul 17, 11:06 PM
    • 26,015 Posts
    • 10,371 Thanks
    forgotmyname
    did she find a buyer ? or is she is in the process of selling it ? as to the service charge . is that just like a ground rent ? and was it proportionate or a rediculous figure ?
    Originally posted by travelmonster
    They are only testing the water at present, doing the sums to see it it makes sense financially at present.

    Although they have valuations on the property it was mentioned that few people would get a mortgage because of the lease so they bought that thinking its probably just going to cost more the longer they leave it.

    Service charge is not outlandish, but terms about leaving access for scaffolding if required may mean a future buyer cannot extend it or put up a conservatory etc.

    You really do need to be careful it seems. What if they council decide to sell the block later. Could the service charge increase?
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
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