Ex-Local authority flats as BTL

bmlg03922

Is it adviseable to consider buying one?

If a block is ex-local authority, does that mean all the flats are all now privately owned? IF so, does it matter that it used to be LA owned?

For some reason, people steer clear. As a potential BTL buyer, is there anythign I shoudl know in comparison to buyign in a standard privately owned block?

lynzpower

Depends who you are considering letting to. If you are letting to housing benefit clients, then you shouldnt have a problem. If you are renting to young professionals, the question is, would the target market want to live here? Some LA blocks are good, some not so good, all depends. Some ex la are not in blocks, and thus are more mixed tenure ( houses, small estates etc)

personally, Id never dream of buying a BTL property that I would never live in myself, thats a good guide, as you never know how the markets gonna go, and you might find yourself living in it.

chugalug

Some LA blocks were not well maintained. Sometime in the future you could receive an extremely large bill for works. Could you afford it??

dander

Ask about 'decent homes' - Government initiative to bring council housing up to certain standards. Everything being done under decent homes needs to be complete by 2010, so current owner should have had an inkling about what's planned for the block (if anything).

It's a bit of a myth that council flats accross the board are likely to attract high maintenance charges. There are a limited number of things that they can do to a block that will be expensive, and even if they haven't, councils are bound by law to tender jobs out to several suppliers and the cost has to be audited.

Things to watch out - is the building listed? Quite a few blocks, particularly in central london are. These tend to be the blocks that you hear the 'horror stories' about when it comes to enormous bills to fit double glazing etc. As with any listed building - repairs are more expensive because of quality demands. Does the building have a lift? Lift repairs can be very expensive, especially if they decide they need to replace them. Is the building of non-standard construction? Costs can get sky high if a high-rise block needs to be completely reclad - and that will be passed on to you. Is the area being regenerated? Some estates - especially the larger ones suddenly get huge schemes thrown at them - with buildings being pulled down and rebuilt. And be aware many mortgage providers won't lend on anything taller than around 4 storeys. (I can't remember the exact height - something to check)

Generally council flats are great buys for the money if you think about it carefully first. Council's plan years in advance on major work, so you should be able to find out what's planned. If you are tempted, I would say the smaller the estate the better. More communal areas mean more bits and bobs you will be expected to chip in for. Go for standard construction, non-high rise and check the whole development is well looked after and not just the flat you're interested in.

If the entire block is ex-local authority I would have thought that just means it's been sold to a housing association. However, some estates have been completely sold off privately - I would ask your estate agent for clarification.

gallygirl

You need to be careful - some lenders won't lend on ex LA flats over so many floors (sorry, can't find a link but have seen it several times). Also you may find service charges are disproportionately high compared to rent.

I aggree with others - be v careful - and I speak as the owner of 3 ex council BTL properties, but all semis not flats.

Ems*Honie

I've just got a MIP for a BTL, one of the questions that hinged the agreemant was if the house was ex authority, I dont know what the differance would have been, but it appeared relevant. I would say it is worth researching before hand.

lizzyb_3

Hi
I have a BTL which an ex local authority 1 bed flat. Its in the centre of town & has parking which a lot of the others dont. The flat is bigger than newer flats & the layout means you are only joined on to downstairs. Nobody eitherside as its hallway. It was completely modernised when we bought it & Ihave never had a problem renting it out. The present tenent moves out on the 15th of this month (to go travelling) & next one going in on 16th. The other great thing is that the communal charge is unbelievably low compared to what some of the new flats charge. Obviously it depends on the area etc but don't rule it out. I'm on the hunt for another & will be looking at ex local authorithy again. The key is getting the right area.

clutton_2

i absolutely agree with lizzyb - choosing the right area is the key - i find with mine, that a single benefit tenant will not attract anywhere near a market rent, but, a couple might. i also find that the maintainance charges are very very small in comparison to privately owned blocks. My solicitor decided to get several clauses in the leasehold documentation changed, and i had to pay for the councils legal fees for me to do that. But, good BTLs for a young couple wanting to stay near their own family - hence they know the area well. You will have to have permission from your council if you want gch installed, but, as long as it is done by a CORGI guy there should be no problem. i own a flat in a 2 storey block and NAT WEST provided the mortgage. lots of research is my suggestion. good luck

crankup

Have a look on nethouseprices.com to see how many have become privately owned over the last 5 years.

A lot of ~60s council flats were built out of prefabricated material (Reema Construction etc). They are troublesome (concrete cancer) and normally only suitable for cash buyers.

clutton_2

Reema Construction - were dreadful, but construction such as "Wimpey no fines" are absolutely fine.