Right to buy! To buy or not to buy? Help please !!

Donna01

Ok so..1 bedroom flat in London, on RTB scheme I'm offered purchase price of 42k, average size for 1bed, good condition, secured small rise block, good transport links.
Is this a no brainer?? Will I be stuck with it? and unable to upgrade unless I manage to save tons of cash before then? Is the fact that there are shortages of properties in London a security blanket? Do I need to worry about the "housing bubble" I keep hearing about??
I am in full time employment and will mortgage, I currently rent, yes the mortgage will be cheaper..
Typing it sounds a no brainer but as a 1st time buyer the thought of committing to a mortgage is nerve wrecking !?
Genuine opinions would be greatly appreciated. Thank you

Jenniefour

OP, is there a typo there on price? 42k is less than the price of a garage or lease on a small shop in London.

thequant

Jenniefour wrote: »

OP, is there a typo there on price? 42k is less than the price of a garage or lease on a small shop in London.

Don't feed the trolls!

Donna01

No typo! I'm certainly no troll either :-)
It's a RTB which means you receive a discount calculated based on god number of yrs you have been a tenant, I have qualified for near enough maximum discount
Thanks

Donna01

Oh god, typo on my reply! U receive a discount based on the number of years you have been a tenant, is what I meant!

Running_Horse

This was the cheapest one bed London flat I could find that was not shared ownership, auction guide price, student pod, or hotel investment (there is a lot of rubbish on Rightmove). Even allowing for RTB discount £42,000 seems a very low figure.

http://www.rightmove.co.uk/property-for-sale/property-42174218.html

Could you afford it if the council decided to do communal repairs?

Donna01

It's only four floors high, quite nice little block, we'll maintained. I could afford repairs as you can spread the cost if required, the largest bill would be something to do with the roof probably but again with spreading the cost I don't think it would be a worry. It was valued at 120k I have been a tenant for 15yrs

Alias_Omega

Hi Donna,

a) Is it Freehold or Leasehold?
b) Is there a communal area? Is this communal area owned by the council? Are there any planned upgrades...if so..wait till its complete

Donna01

It's leasehold
There's a tiny play area for kids
Had some upgrades already, it's in good shape..ie good kitchen/ bathrooms, windows
New front doors may be coming but I would think that's it!

Donna01

Thanks for replies

moremore

Donna01 wrote: »

Ok so..1 bedroom flat in London, on RTB scheme I'm offered purchase price of 42k, average size for 1bed, good condition, secured small rise block, good transport links.
Is this a no brainer?? Will I be stuck with it? and unable to upgrade unless I manage to save tons of cash before then? Is the fact that there are shortages of properties in London a security blanket? Do I need to worry about the "housing bubble" I keep hearing about??
I am in full time employment and will mortgage, I currently rent, yes the mortgage will be cheaper..
Typing it sounds a no brainer but as a 1st time buyer the thought of committing to a mortgage is nerve wrecking !?
Genuine opinions would be greatly appreciated. Thank you

Was this the amount on your section 125 from the council, or is it your own calculations? If it's the council's valuations then have the property checked out thoroughly by your own surveyor and also what the council has planned for it after 5 years discount has been paid back and the searches have expired....