Buying a 'dodgy' Ex council flat in London?

SomewhatClueless

Hello all,

I'm a first time buyer & have been engulfing the wisdom from the forums (whilst trying to not feel overwhelmed by the plethora of information!) so a big thank you for the contributors.

I am attempting to get on the London property ladder & the market in London appears to have gone crazy at the moment.

For my budget (around £325 000) most of the places I have seen in the areas I would like (North central, perhaps a little NW or NE) have been a little dingy and scruffy around the edges.

However, I fell in love with a little 1 bed ex council flat near Old Street. I felt safe walking to and from the estate (and saw plenty of young professionals in the meanwhile & even cornered one outside the trash shoot who confirmed, "Yes it looks well dodgy from the outside doesn't it, but it's safe, I've never had any problems and I feel safe". The estate it is on is MASSIVE. It is low rise and made of brick so mortgageable.

The flat in question however is accessible from the main road so no walking through the estate. It's newly refurbed & priced at £320 000.

My questions are (mainly because I'm trying to persuade the fossils of the buy as they are helping me):

-is it a terrible mistake to buy a ex council flat on a massive estate? Yes, I've googled it and see that there have been some issues from anti social behaviour etc. but said flat feels somewhat 'away' from the activity and both the seller and other residents didn't feel unsafe at all. It's less than 10 minutes walk from various stations.

-what is a good price to offer considering the London market currently? Based on the sticky thread, 90% would be around £290 000, but is that taking the mickey/laughable? I was thinking more £310 000 but I don't want to be used.

-Is it worthwhile to get a broker? I think I'm going to go with Nationwide so do I need a broker?

-my dad is concerned that the least is *only* 100 years - but as I'm aware from reading here, it isn't a concern as it is relatively easy to extend before 90 years.

Would greatly appreciate any input!

Thank you!

Lucy aka Somewhat Clueless

dell12

The biggest problem I've seen with Ex LA flats is the councils use the leaseholds as cash cows. When one roof on the estate needs replacing, they'll all be replaced which won't come cheap to those who own their property.

That said alot of 1960s stuff is well sized compared with what Barratts are building today.

In terms of asking price you need to see how long it's been on the market. Use something like Property Bee which will tell you how long it's been listed on Rightmove. If it's been on a while I don't think 5% under asking is crazy but the way the market is in London right now I wouldn't go any lower than that personally even if you think it's over priced - I'd be tempted to walk away. Working in property most stuff seems to be going at asking price or 5% - 10 % above right now.

If you like it go for it. Stuff doesn't hang round for long.

SomewhatClueless

Thank you dell12!

Yes, from what I've been reading online, the payments needed for 'repairs' seems to be a concern, so will be sure to ask the seller/agent tomorrow.

Thank you for the 5% advice, that's good to know. The property has only been on the market for one day(!) but has already drummed up interest, but I happened to meet the seller today and got on well with him and he liked the fact I was a first time buyer so chain-free.

Will see how it goes tomorrow - am taking my parents so I'm sure they will help guide me too (if I can get them to forget about the 'stigma' attached to ex council flats first..!)

dell12

Good luck. Getting on well with the seller is important. Agreeing the price is the (relatively) easy bit. Making sure the deal goes through after is somewhat more tricky. If both sides trust each other it makes things alot easier.

See how long they've lived there (look for the old listing on Rightmove). If they've not been there long is it because of noisy neighbours? Well worth wondering past at 10pm too.

As I said before if you like it and think it's fairly priced go for it. Lots of FTBs in London are a bit timid and lose out. Obviously don't offer more than you can afford but don't leave yourself to have regrets you didn't get it if it goes for what you consider a fair price.

SomewhatClueless

Thank you!

Yes I asked him right out about how long he had lived there and why he is moving out - he has been there a year and I think the plan was always to refurb and upgrade (thanks for the advice about checking the old listing on right move - doesn't have the date but sold for 220 000 which I'm guessing is about a year ago from what he's said - he's done a good job with the refurb, and has put wooden flooring throughout) and he also mentioned he's got two kids now and the sofa bed in the lounge isn't enough for them all. He said it wasn't noisy. I'm normally slightly suspicious of people but I got good vibes from him (though my mum says on occasion I'm naive ). Good idea about the 10pm walkabout if my time allows!

I personally think 320 000 is fair considering the other places I've viewed in that price region (or more) have been pretty grotty/smaller and considering the current climate. 5% lower would be 305 000 which I think is a VERY good price for the size/proximity to Old Street station. Perhaps 310 000 would be a good place to start. Will discuss with the 'rents! They have a slightly skewed view having helped my brother buy a 280 000 (for a 2 bed in Clapton) but that was a year ago and things have swiftly taken a turn on the upwards!

Thanks again dell12, you have been very helpful!

SomewhatClueless

So from the looks of it from right move

Initially bought in 2010 for 175 000, then July 2013 for 220 000 so definitely looks like it was more to refurb and sell than for a long term stay…

On zoopla it says it has a current estimated price of £230 437 according to increases in average housing prices! So this makes me a bit nervous considering the asking price is 320 000..! Now I'm confused, as other ex council 1 beds I've seen (e.g. in Kentish Town, Gospel Oak) have still been around the region of £325 000 - £340 000

PheoUK

SomewhatClueless wrote: »

So from the looks of it from right move

Initially bought in 2010 for 175 000, then July 2013 for 220 000 so definitely looks like it was more to refurb and sell than for a long term stay…

On zoopla it says it has a current estimated price of £230 437 according to increases in average housing prices! So this makes me a bit nervous considering the asking price is 320 000..! Now I'm confused, as other ex council 1 beds I've seen (e.g. in Kentish Town, Gospel Oak) have still been around the region of £325 000 - £340 000

Trying to work out if it's overpriced or nr is kind of like black magic! Bear in mind Zoopla will be somewhat out of date, and they don't know what they actually sell for as well...

Lizling

I wouldn't worry too much about Zoopla's estimates. I live on a similar estate and it's underestimating prices by about nearly a third compared to what they've been selling for recently. Looks like it can't keep up with London prices changes.

Give the council a ring and check out what major works are planned, if you haven't already. The main thing to bear in mind imo with ex-council flats is that they can't use service charges to build up a pot of money for big repairs. If there's a huge bill coming up for a new roof, you might want to change your offer accordingly.