First time lease buyer advice need pls

Shaba_2

Hi there, Firstly want to just say this has been a very very helpful site for me in a variety of ways and recommend it to everyone I know.

I have just purchased a flat with a 80 year lease with my girlfriend. It is our first place (1 bedroom massonette in north london). We have the mortgage and deposit ready. We are currently in the middle with solicitors (countrywide property lawyers) waiting for the council pre-assignment pack. (sellers pack) which has been over a month now!

Just a couple questions.

This flats landlord is the housing association. Does this make any kind of difference or is there anything I should be looking out for? (Is there also more chance of becomming a freeholder or none at all?)

The seller of the flat is a mortgage company as it was repossessed, is this good or bad? or makes no difference?

Also the property is empty there is no chain and we are ready to move in ASAP. How long does this whole process take on average? We made contact with solicitors on 28 august 06.

Thank you in advance..

silvercar

Sounds like you are buying an ex-local authority flat. The thing to be wary of is the service charges and any plans for the redelopment of the block. You will be billed for your share.

Also, some mortgage companies are unwillling to lend on these properties. Different companies have different criteria but it can depend on how tall the block is and the proportion of flats under private ownership. Ex-LA flats are generally cheaper than similar private blocks; this affects your buying price but also your future selling price.

When buying any flat I would recomend doing a reccy at all times of day/ night, weekend etc. Your living in close proximity to your neighbours check out the area well.

Shaba_2

hi, thanks for reply..

No it deffo isnt ex-council.. its a masonette not a block of flats. Just a house converted into a upstair and downstairs masonettes. Its not even near council properties.. I Think the owner had a shared ownership scheme with housing association then could not pay his mortgage company and the repossesed leaving housing association as landlord..

Doozergirl

Make sure your solicitor asks the mortgage company to clear any outstanding service charge and ground rent debts that will probably be outstanding. If they don't tend pay the mortgage, they don't to pay the bills either

Might have a problem with disconnected utilities also and maybe even pay meters. If you need the utilities switching on quickly, they can charge you the call out; impossible to avoid as you can't do anything until you own the place. I think you can move back to a regular meter after four weeks.

You'll probably have lots of debt collection letters too; if you call the agencies concerned, they will stop sending the letters.

Sounds worse than it is though

Shaba_2

thanks for that good point about the debt collectors.. probably means house has bad credit history...

as for the process any ideas on how long it can be?

izoomzoom

If you think that this is a SO property, do you know what % you are purchasing ?

And have you geen approved by the HA's selection criteria ?

Shaba_2

hi,

No this is not a shared ownership its just the housing association own it but are selling it as a lease..

cattie

As the flat is one of two in a converted house you will have the option in the future of buying the freehold jointly with the other flat, providing the property is owned by them & not the HA & that the other owner wishes to do this.

If the other flat is still a HA property then your best bet would be to approach the HA about a lease extension after you move in. When you have owned the property for 2yrs you will have the right to an extension & it is unlikely that a HA is going to quote a totally unreasonable figure for this.

Because you are dealing with a HA the buying process may not be a particularly speedy one as they can be very slow at replying to queries from a solicitor.

In my experience the process has taken between 12-14 weeks from start to finish & if it's any quicker than that then consider it a big bonus.

Shaba_2

thanks for all your replies guys.. much appreciated..