Need a mortgage for a flat in a high rise

hairyantelope

Anybody any experience with this one? My sister is planning to buy her council property. A flat in a high rise block in Manchester. It's been valued at around £45K but with the necessary discounts, she can buy it at £24K. However, because it's in a high rise (60 in the block) many mortgage companies won't touch it.

Has anyone done this, and who with.


Help and advice on the whole situation would be greatly appreciated.

MortgageMamma

which floor is she on and how many floors?

silvercar

If it is difficult to get a mortgage it will be difficult to sell.

The danger with buying a council flat (as opposed to a house) is that you will be expected to pay your share of the maintenance of the block. If th council decides to upgrade the whole block in a few years time you could face a mammoth bill.

hairyantelope

Its the 2nd floor of a 10 (might be 11) storey building.

I did thing about the maintenance side of things, and the costs aren't the cheapest, but I don't have any particular thoughts on that.

However, with house prices the way they are, it still seems to me that £24K is a bargain in anyones book. I'd buy one if I could.

Still, I'd welcome anyones thoughts on the whole thing as I don't want to encourage her into something that would prove difficult to sell in the future.

Mr_helpful

is it concrete? There are a couple of lenders that will do these I think.

hairyantelope

Yes, it's concrete. Is there any other sort - sorry for my ignorance, but I just had visions of the big bad wolf stood outside a huge pile of sticks laughing away......

hairyantelope

OK, so I've just spent a day eating humble pie - of course there are other sorts apart from concrete - and my sisters is a brick built one.

Does it make a difference if its brick or concrete (I could understand mortgage companies not wanting to help if it were wood of course!)


Thanks in advance

herbiesjp

Brokers usually are able to discuss these cases with lenders to see if they have mortgages properties there in the past. Alternatively the lender can find out from the surveyors directly to see if the property is acceptable

This may need the help of an adviser to find a suitable lender

Bargain_Rzl

Brick-built properties are standard and will be mortgageable assuming no other issues (the height of the high-rise block being a potential other issue).

Concrete-built blocks are much, much more difficult to get a mortgage on, and not all lenders will lend on them. That's one of many reasons why a property might be advertised on an EA website as "suitable for cash buyers only" or require a large deposit/low LTV.

hairyantelope

I know of at least one other person in my sisters block who has bought their flat, but they did it on a loan rather than a mortgage, as they struggled to find a suitable lender.

With my sisters finances the way they are, I don't think I would want her to go down that route, but it may be an only option....


Anybody know of a specific lender out there, or will it have to be a broker doing all the work for her then?

Mr_helpful

You would probably be better off with a broker