House vs a Flat? How does the cost of living compare?

icarus1984

So, I was all ready to buy a flat I liked when the valuer decided it was unbuyable. (Ex council flat, only one in the block that's sold so valuer has decided it's not worth an investment- this has surprised my Broker, my solicitor and the Estate Agent- and soured my opinion of the survey process slightly)

Following advice I've decided to find somewhere new rather than trying to go through different lenders for potentially the same issue. I am also very limited on funds. All of my deposit etc... is coming from proceeds from the sale of my current home and I have no savings, so I don't want to keep throwing money away trying to buy different places only for them to have problems.

I have found a nice ground floor 2 bedroom flat I liked which has a guide price matching the one I already wanted, it's a lot less than I can borrow but I'm comfortable with the repayments. However I've also seen a 3/4 bedroom mid terrace house (which has been updated quite a lot by the current owner whose an electrician) that could easily be my home for the rest of my life. It's at the very top of my affordability as it is so I would be pushing things a lot more than I'm comfortable.

My essential question is: Does maintaining a house cost a lot more than a Flat, and is it worth this for the extra space (and Garden, and no neighrbours above you etc...)? I am planning on using the extra bedroom for a lodger if required so that should counter balance a few issues.

N:B: I am single and will be living in this home alone majority of the time, except for when I have my son (currently 7) for weekends and holidays. I also regularly have friends and family visit and stay for weekends so extra space is helpful for that.

Yorkie1

With flats one expense that is often not factored in - and can change without you having an awful lot of control - is the service charge, which pays for maintenance of the communal areas. There's also the risk of expensive repairs being shared among flatholders.

However, you only have to deal with contents insurance (the buildings insurance is paid for from the communal funds), and it's possible that the fuel costs might be lower as you're surrounded by other flats so better insulation.

If you can use the extra space and can afford the mortgage on the house when interest rates go up then personally I'd go for the house. So much more flexible for your current and future family needs.

Edit: another expense which can arise in a flat relates to the need eventually to extend the lease. You own a flat leasehold, and if it drops below a certain level (currently somewhere around the 65-70 year duration, I think) then prospective buyers will find it hard to get a mortgage and it costs a lot more to extend the lease back up to an acceptable length.