First Timers... A Tale Of Two Choices!

BobProperty

Had a look at the links. I don't often deal with short leases up north, but I'm guessing both are 125 year, so based on what the balances are, both places were first done up about 20 years ago. (which sort of fits with the kitchen in flat A).
First thing is the parking. Dora's point about residents parking may be true but won't help much given there's only one car space outside 3 flats. Where do they park at flat B, nun's not being known for needing 1.6 car spaces per bed?
Damp in flat B worries me, as it looks like if there is a problem it will be in the roof and getting to that needs scaffolding, never mind finding someone who knows what they are doing. Also, is that why they are being sold? Have a few owners suspicions that the roof needs an overhaul soon?
Heating costs. That roof on flat B is unlikely to be insulated to anything like current standards. It's flat A for me on heating costs. Ask the vendors to show you their last few heating bills.
Kitchen needs doing in flat B. Silvercar said no-one puts in a decent kitchen for £2k. I would argue that a £100k property doesn't warrant much more than that and anyway the owner is just after making it look good enough to achive a sale. The kitchen behind me as I write cost more like £1k but I fitted it myself and it looks perfectly OK. Whether the vendor can do the same job is another matter. Will it be to your taste? Are you expecting Star Galaxy Granite worktops? (you won't be getting them) Neff appliances? (no sorry)
Ask them for the building regs approval for what they are doing (that'll cause some fun). If they say they don't need it, get them to explain why.
Kitchen looks dated but usable in flat A, by the way.
Flat B any chance of it being listed or in a conservation area? or this happening soon?
Management companies? What is known? What are they like?

EagerLearner

Ok, today we found that the 2 bedroom flat has been offered on/accepted. So back to the drawing board for us. We're quite gutted, but we had only put an offer on this 1 bedroom one anyway, not the 2 bedroom, so our own fault for not acting quickly.

We can probably get the 1 bed property for 96k as they came back with 97.5K when we put in an offer of 95k on Sunday.

As first time buyers, a mortgage like that would not cripple us and we could get some decent carpet in there to further insulate, plus a reasonable kitchen to add a modern touch. Our mindset now is that this is priced low because there is no kitchen and it's a communal building, if we made it look slightly better, and insulated well, could be reasonable?

It does worry us that the 1 bedroom only has 77 years on the lease though, can anyone tell us what that means? We know nothing about leases and any advice much appreciated.

Yours dispiritedly....

Sophie & Damon

silvercar

If its not a problem for you now, it will be when you come to sell. That lease needs extending by the current owners prior to selling.

Pal

I would walk away and keep looking. At the very least the vendor might come back and accept your £95k offer if they think you are walking away!

EagerLearner

Hi, we have placed an offer on a property and after some too-ing anf fro-ing, our second offer has been accepted - we have agreed on 117k for a 120k property - garden, brand new 125 year lease, newly converted and refurbished. The bedroom is smaller than we would like, the road very busy in summer and the neighbouring house doesn't look great.... but... hopefully this is a safer bet. This is it:

http://www.rightmove.co.uk/viewdetails-5291293.rsp?pa_n=3&tr_t=buy

Anyone know what 'Ground Rent: Peppercorn' means???

I don't know what we'd do if the other lady came back at 95k now, but extending a lease is not something easy as far as I understand it.

Thanks all & let us know of any further tips before we go full steam ahead with conveyancing!

Sophie & Damon

Doozergirl

I suspect peppercorn means a negligable amount. If the lease is brand new then the freeholder maybe hasn't decided yet. It'll be £50 or less a year.

This a new conversion? Much better than an old one with very stringent Building Regs in place these days. Make sure the owner has all the completion certificates from Building Control. In fact, if I were you I'd call the Building Control department at your local council and ask them if it's a good standard conversion in their eyes - before you start spending lots of money on conveyancing. Hopefully you'll receive positive feedback and will save yourself something on surveying fees.

The lease extension on the previous property would cost several thousand, so although not necessarily difficult, you'll have to knock the cost of extension off the value of the property before you buy and have been there 2 years before you can renew the lease. The current owner should ask for an amount to extend, if they haven't already. If the freeholder replies quickly to the request, it would hopefully be a pain-free process.

Good Luck!

plane_boy2000

Advice given to me by mortgage broker - always try to find that bit more so that you can get a 2 bed. If then you ever cant manage the mortgage you can always get a lodger!

EagerLearner

Hi Planeboy, thanks but at the prices in Brighton area, the second bedroom would be inhumane living quarters!... When we're rich we can get a 'proper' 2 bedroom that someone wouldn't spit at, for now, we have not seen any 2 beds we could a) afford or b) even suggest anyone might 'live' in...

Doozergirl - thanks for advice, I will call Newhaven planning department first thing and ask about certificates etc.

Sophie & Damon

Ian_W

Hi Sophie,
Peppercorn, legally, should mean nothing, the peppercorn being a token rather than a real rent. However as Doozer says it may be just a nominal figure. Your solicitor will check out all the details of the leasehold etc and advise you.
The maintenance is split 50/50 with the upstairs flat so when/if instruct a surveyer point that out and ask them to pay attn to the outside, particularly the roof, if that's in good fettle you shouldn't have any payments in that respect for the foreseeable future.
With any flat outside space, particularly a garden, is a real bonus [even if you don't like gardening] - not just for you to enjoy but also as a future selling feature.
Pity RM didn't have any inside photos so we could all have a good nosey around your, hopefully soon to be, new home. Hope everything goes smoothly.

BobProperty

Agree with the others, peppercorn = next to nothing, usually not worth collecting. (I think I owned somewhere where the ground rent was 7/6 or 37.5p per annum, not worth sending the letter for the price of the stamp and the bank would probably charge 40p to clear the cheque in a business account)
What about the car parking space?