PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

buying flat to rent out

Options
proevofanatik
proevofanatik Posts: 46 Forumite
in House buying, renting & selling
i am thinking of buying a house in a high rise flat so i can let it out. what i want to know is if the flats were to be demolished years down the line, how much would i get back for the house? could i name my price for it? could i more than double my money?

Comments

  • Dom3663
    Dom3663 Posts: 70 Forumite
    First Post First Anniversary Combo Breaker
    Options
    Is the demolition imminent? If I was on the council and I knew the block was going to be knocked down; I'd have the room/house empty and save myself the money to buy you out.

    Edit: After re-reading your post I see that you don't know if its to be demolished ... in which case, I have no idea what would happen :(
  • BitterAndTwisted
    BitterAndTwisted Posts: 22,492 Forumite
    First Post Combo Breaker
    Options
    Unlikely. Normally compulsory purchase means you get market rate and often people have been paid less. There was a big scandal about this oop north some time ago although they were back-to-back houses in one of John Prestcot's Pathfinder redevelopment schemes/scams not flats
  • Catblue
    Catblue Posts: 872 Forumite
    Options
    Is this flat council or ex-council? If so, it may very well be unmortgageable if it is too high up. I think anything above the fifth floor is a no-no for most mortgage providers.

    So, even if you can pay cash for the flat now then it still means that its value will be affected by resale given that it is unmortgageable. Even if the block is demolished later, you'd only ever get the "unmortgageable flat in a council high rise" price for it.
  • ILW
    ILW Posts: 18,333 Forumite
    Options
    This does appear to be something pretty special, being a house, high up in a tower block.
  • proevofanatik
    proevofanatik Posts: 46 Forumite
    Options
    thans everone for your answers. i think ill give the high flat a miss then.

    i have another idea. i bought my house for £85,500 5 years ago and i see similar houses to mine sold for £115,000 last year. if i were to get the same for mine, is it a good idea to sell up, buy a small flat for £30,000 and let it out. then get a mortgage for a bigger house and use the let money to help with my new mortgage?
  • proevofanatik
    proevofanatik Posts: 46 Forumite
    Options
    or is it best just to put the £30,000 down as a deposit for a new house?
  • Fire_Fox
    Fire_Fox Posts: 26,026 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Options
    Do you know anything about the lettings market? Loads of empty flats at present, are you confident of making a profit? Have you factored in service charges and ground rent?
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.6K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.8K Work, Benefits & Business
  • 608.8K Mortgages, Homes & Bills
  • 173.3K Life & Family
  • 248.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards