Buying NIHE flat

bartonfink_2

Hi,
would appreciate a bit of advice , tyia.

i currently rent a flat from NIHE , im very happy there and the rent is very reasonable.

I am concerned about home security , i dont believe my current agreement is a secure home for the next 20+ years.
IE Govt may decide to raise rents in line with private or sell to private or just kick us out.

So i was thinking of buying the property with a generous discount.

My basic question is does anyone think that is a good idea?

Service charges around 1000 p/a

property has no real investment potential and the sole reason for buying would be security.

initial costs would rise by 50% to cover mortgage and service charge , also i believe im liable for future communal development.

also one question , if the nihe disbands or sells private , are they obliged to offer me the property to buy before a deal is done?

any advice welcome

Old_Git

NIHE flats are totally different to houses .As you say you have the service charge .I have known of people having to get new windows because everyone on the block was getting them at the same time and they had no choice .Has anyone else in the block bought .I would be cautious of future communal development it can cost you a fortune .

bartonfink_2

thanks for that ,
they give us 5 years approx service charges , one year included outside work and the charges rise to £3000!
either way we dont mind too much , the rent is around £260 per month and if we bought the service charge and small mortgage would be around the same.
its the security is more important.
do you have any idea that if NIHE disband or sell their housing stock , do you get offered to buy before handing to a new landlord?

our main concern is having a private landlord and rents doubling to private sector rates and/or housing changes , ie means testing, bedroom tax etc etc

Old_Git

do you have any idea that if NIHE disband or sell their housing stock , do you get offered to buy before handing to a new landlord?

really no way of knowing this .

How old is your flat and how many in the block .
Have any other bought their flats ,have any been resold on the open market .Is it an area where you could resell .

donnac2558

Never heard of NIHE, selling to private landlords. You have the right to buy, and after five years can sell on yourself. That is where most of the private rentals in many areas come from.

NIHE is suppose to be disbanding but the Housing Associations will be taking over.

bartonfink_2

thanks for the replies ,
by private landlord i mean housing association.

do they operate the same as NIHE?
do they sell their properties with the same conditions.
appreciate the advice.

the property is a high rise in north belfast.
14 floors of 4 flats.
i am on the 6th floor.

i know 4 have been bought and are being rented , one sold recently for £9,000 over what ive been asked to pay

Old_Git

bartonfink wrote: »

i know 4 have been bought and are being rented , one sold recently for £9,000 over what ive been asked to pay

How do you know what it sold for .I mean was the asking price £9,000
more than your discount or was the selling price £9000 more than you discount .
so would your discount from NIHE be more than £9,000 .

donnac2558

Never came across anyone who has bought from a Housing Association??

live'n'learn

I worked for the NIHE a few years back and if I remember correctly you do not own the whole flat I think they still own roof/windows but it's been a while I could be wrong.

bartonfink_2

as an update ive found out that if a NIHE property is handed to a housing association then you can still buy it.
the below is from preserved right to buy which i am led to believe is valid here in Northern Ireland and not just England.
This will be important to most council tenants here in Northern Ireland as the NIHE is due to hand over all its property to a housing association!

Ex-council homes (Preserved Right to Buy)

Most housing association tenants do not have the Right to Buy but if you were a secure council tenant and were living in your current home when it was transferred from the council to another landlord, like a housing association, then you may have a ‘Preserved’ Right to Buy.

This only applies if you were living in your home when it was transferred. It can also apply if you then move to another property owned by the new landlord. But it does not apply if you move to a property owned by a different landlord.

If you have the Preserved Right to Buy, then you can buy your home under the scheme in the same way as if you were still a council tenant. Your landlord will be able to tell you whether you have the Preserved Right to Buy.

this is in England only,

Tansy_1980

If your only reason for buying is to preserve your right to remain in the home, it's not a good idea to buy. As a secure tenant of the Housing Executive you have a tenancy for life and a limited right to pass your tenancy on to family members who live with you if you die. The only way NIHE can recover possession of your home is if you seriously breach your tenancy agreement - and really it's only if there are proven issues of anti social behaviour or you owe significant rent arrears. Have a look at the housingadviceni website for information on how and when NIHE can evict a tenant.

It can be really hard to sell on an ex-NIHE flat after you've bought it. And there's conditions attached to how and when you can sell it in the first 5 years. And like someone else said, you become responsible for all repairs in the property and have to pay service charges for upkeep and maintenance of communal areas. I would definitely speak to an advice agency about this option before making any decisions. They can go over the pros and cons with you and you'll have a better idea of what's the right fit for you and your family.