Should I be wary of buying a very cheap repossessed flat?

THS

I am wanting to purchase a buy-to-let property and have already researched the idea a bit.

I have now been to visit a flat which is part of a terraced house conversion (1st and top floor). The flat is already cheap but has just been reduced by a further £5000 as it has had no offers in the 6 weeks it has been on the market. Should I be concerned?

I don't know much about this kind of living arrangement as it is not part of a purpose built block.

Ordinarily I would probably just look elsewhere but my sister is quite keen to live in it.

Any advice on where to go now and what to look out for would be VERY much appreciated. Don't want to pay a solicitor yet if there are any basic things I could deal with myself first. Thanks

dryhat

Do yourself and your sister a favour - and walk away.

Annisele

Will you be buying with a mortgage? And are you aware of the issues letting to your sister might cause? (Essentially you'd need a regulated buy-to-let mortgage to let to your sister, and they can be harder to get hold of than the regulated kind).

I wouldn't be overly concerned about the £5k reduction. But I'd be worried in general about a flat conversion - who is the freeholder, what is the service charge, and how easy is it to get repairs done?

Is your primary concern to find somewhere for your sister to live (in which case her opinion matters a great deal), or to start a BTL business (in which case her opinion doesn't matter a bit)?

THS

Annisele wrote: »

I wouldn't be overly concerned about the £5k reduction. But I'd be worried in general about a flat conversion - who is the freeholder, what is the service charge, and how easy is it to get repairs done?

Thanks for this, this is the sort of advice I need so that I am asking the right questions.

I don't need to find my sister somewhere to live - would just be handy as I'd have a guaranteed tenant for a while.

I won't be getting a mortgage so don't have that side of it to worry about.

roundturn

How can we comment on the property without seeing it?

There are many possible reasons it is not selling, and/or is cheap, some might be of concern, some not!

Do the usual checks and find out! Of course, ifyou don't want to pay a solicitor (or surveyor, or other professionals) you will have to rely on your own knowledge and skills. Are they sufficient?

* do you know what you are doing regarding BTL?

* do you kno the additional issues regarding letting to your sister?

thelem

Do not let to your sister. It's a business relationship between landlord and tenant, which could introduce tension in your family relationship. What happens if she loses her job and is unable to pay the rent? Would you be able to evict her?

dimbo61

1st and top floor of a terraced house !
If the property is 3 stories then it maybe a HMO
Mains wired smoke alarms and heat detectors with control panel if two seperate flats, Fire doors, emergency lighting, ETC