Buying a flat on or near top floor

sheepysheep60

Hello,

I've been presented with the opportunity to buy a flat on the top floor of an appartment block in Hackney, London. It's cash only (due to the fact its on the 18th floor) which I can just afford as when I sell the 50% of my current flat + savings I just cover it.

I just wondered if there are any cons to buying a flat on the 18th floor. Is it going to depreciate in value? Is this a good investment for me? Is there anything I should be aware of when buying a flat that mortgage lenders won't lend on?

Thanks!

Dave

Ellie007

I didn't know that being on a high level would stop banks giving you a mortgage. Interesting. I guess that this would be my biggest concern in terms of selling it on at a later date. I would also want to know that the block is well-maintained (a broken lift and bringing in the weekly shop is a bad scenario!)

SalsaDanca

If you can't get a mortgage, then when you want to sell the flat potential buyers might not be able to get a mortgage either. Do you think there will be lot of demand among for such a flat among cash-only buyers? Buy-to-let investors will usually want a mortgage so that they can offset the interest against their rental income. It might take a long time to find a buyer.

If it's an ex-council flat, be very careful about the potential for very high maintenance bills when the council decide to refurbish the entire block.

Mr_Moo_2

Pros - Great views, you can save a shedload by ditching your Gym membership, street noise will be distant, no hobnailed boots stamping on floorboards above you. Cons - Obbiously what Ellie says and bear in mind you're limiting your sell on market considerably. And if your own circumstances change what will the impact be? Think it through.....

cattie

Is this ex-council? If so, don't do it, run a mile.

A flat no lender will grant a mortgage on, high service charges & probably many thousands to pay out when major works or redecoration of the block is needed. Why would anybody want to put their money into something they are going to struggle to sell on?

sheepysheep60

Thank you all so much for your advice. I think I will go and have a look, but I'm definitely going to be far more careful and inquisitive than my initial, excited self was. To be honest, I think I know how much a flat I'm interested should cost, and this is coming in at just over 1/2 of that price. I always tend to think if something is very cheap, there must be a reason for it. "Buy cheap, buy twice" my girlfriend always says.

Thanks again for all your insight, especially cattie ... actually all of you! Thanks, Dave

[Deleted User]

If the price of a flat is so low and there is no option to get a mortgage the problem is highly likely to be that it's leasehold and the lease is about to end.

Spark

It seems that most mortgage providers will not lend on high rise council blocks, all the flats that were for sale in my block of flats (15 storey) in the past were cash buyers only. There are 2 flats in my block which were on sale for years, no one wants to buy them.
And now with the council needing to find more money with the changes in how the council tax benefits will be funded, they might rack up the charges. And the fact that it would be very hard to sell when needed, and what they ask you to pay when there are major works done.
I could buy my flat for cheap, as I have been a long standing tenant and the rebate you can get now when you buy your council property is generous, but I wouldn't go down that route if my life depended on it, what you don't pay now you will pay tenfold later.

theGrinch

I would be concerned about the lease, service charges, unexpected service charges, future works, the neighbours (many could be tenants that come and go), lifts.

Mortgage lending to flats over a certain level are restricted by a good deal of lenders (it can be set quite low e.g. 4th floor and above).

Your selling on market will be smaller.

Dovah_diva

Be warned, bill for major works to blocks where I live are coming in at £20k+ per flat.