ex-council mortgage restrictions

akhlystov

Hi everyone,

can you please help me to understand how these mortgages work.

I heard there can be real problems getting mortgage on ex-council flat.
block buildings a lot of restriction apply. according to this broker - Endsleigh.

following are under question:

• High rise flats - especially if the flats have balcony access and there are more than 5 storeys in the block
• Ex local authority flats - particularly when some flats in the block are still local authority owned

The question is - are there any/many lenders that give mortgages for 5-6-7 storeys brick ex-council flats? Are they always safe or something else is to be considered in terms of re-sale-ability.

Basically I need to know if I can consider such types of properties, or is better to go with 4 storeys brick ex-council houses.

Thank you!

Jimbo1976

Go and talk to a mortgage broker. They will guide you through the process.

Some lenders refuse to lend on high rise blocks, other do so on a case by case basis depending on the surveyors comments on "saleability". A few homes still owned in a block by the local authority should not cause problems, a high percentage may do. Again the lender relies on the surveyor for this information.

eg a 14 storey block in Kensington, no problem. A 14 storey block in Peckham is more challenging.

Wh05apk

Yes, some lenders will consider, often with the caveat "subject to valuers comments" which basically means are there any other circumstances which could make the flat difficult to re-sell - i.e. 2 "identical" flats, 1 in area where 99% is still council, and surrounding streets have burnt out cars/cars on bricks, the other in an up and coming area where 90% now private, and streets clean, it would be likely the first would be declined.