Right to Buy flat in Towerblock

yorkcov

Hello
I am considering buying my housing association flat for £13,500. Market value £37,500.

I would like a mortgage of £10,000 for 5 years and am 66yrs old. Am I likely to get one? Reasonable income, no debts and good credit history.

Regards

Alan

Morgage_Confused

Im no mortgage advisor m8....and theres a few around so they can best advise.
BUT I am pretty sure mortgages can only be obtained for 25k minimum. But I suppose you could get a 25k offset and immediately put the spare 15k in the offset?

However I would be thinking more along the lines of is it really good financial sense in the first place to purchase the flat. Mortgage companies also hate tower blocks and especially x council. Might be a no go.

Owain_Moneysaver

Consider very carefully how you will meet the costs for building maintenance and internal repairs when you are retired. See this thread. Major refurbishment in a tower block could be £30-40,000 per flat (which is more than the market value of your flat so you could find yourself in negative equity).

If you have a secure tenancy from the housing association what do you gain by buying the flat?

ACG

How many floors are in the towerblock?
Is there a working lift?

I think this is going to be a tough ask even if it falls within what lenders would look to accept.
Have you thought about a personal loan instead?

yorkcov

Thanks Owain
I am in principle against the selling off of social housing but increasingly feel I need to look after my own interests in the light of this governments hostility to social housing.
My rent last year went up by 6.1% + £2pw (inflation + 0.5% + £2pw until I reach the "target rent" whatever that is!! Meanwhile my pension goes up by CPI. Everything is well affordable at the moment but in 10 years ?????
My flat and the block have recently been refurbished - wireing, plumbing, central heating, bathroom, kitchen etc. so hopefully no further major expences for some time.
Don't want to put all my savings into it but could manage with a mortgage of £10000 for 5 years if I could get one. I would then be tempted to risk it.

Regards

Alan

yorkcov

Thanks ACG
8 Floors - I am on the 4th. There is a lift, 2 in fact, which are in reasonable condition but not replaced in the refurb.

I could perhaps look to a personal loan but not sure if I would get one of that amount unsecured. Would prefer a mortgage if possible.

Regards

Alan

catieeb06

First of all the value of the flat concerns me- normally a flat that cheap is pretty much unmortgageable. It all depends on the construction of the block of flats really. You'll struggle if it's large panel or any other non standard construction.

Could you not look at a personal loan?

spacey2012

You can only Buy a Lease.
Which if they decide to demolish the Iron reinforced concrete structure, would have a clause that would need to be "decoded" by a good solicitor.
You just need to make sure you dont end up homeless and skint.

miduck

How much would the service charge be, and is there anything in the lease to stop them increasing it substantially in the future?

Simon_gloster

Minimum valution of a property is the biggest issue here. Lending at that age with retirement income shouldnt be an issue unless its just state pension + credits being used.

Min val is £40-£50k so check this out first.

yorkcov

Hi - Thanks to all.

London and Country got me mortgage offer today from Santander. No major problem with it being a towerblock or my age! I've also today had a personal loan agreed by my bank, The loan is only £1.50 a month more expensive so I'm going with that for speed and lack of hastle.
I've taken on board the risk of high bills in the future. Also most of the service charge is the same as I have been paying whilst renting, so it would go up the same anyway.

Thanks again for help and advice.

Alan