high rise mortgage

deanybee

Hello
Can anybody know of any brokers that deal mortgages for council tenants in High rise buildings? I am a council tenant with RTB but am becoming frustrated trying to secure a mortgage on my flat as I am outside the criteria of most high street lenders. The main problems are I'm on the 10th floor of 20, the construction is non standard ie concrete slab, Its a council property with lifts, There are 25 private owners in the block which is a ratio of 25% on the plus side I am close to central London, by the river, & the area is quite good. The discount I am entitled to make this a bargain although if there is a structural problem then i can understand the banks position. Before i give up on the idea I really need to get confirmation from a specialist or would like to hear if anyone has heard of people in my position being able to make the purchase through a specialist
Any advice greatly appreciated.

ACG

That is some mix!

Each of those issues alone can be overcome, combined makes it very tricky.

I put a spreadsheet together (im sure many brokers have something similar) and there are lenders who tick all of those boxes but a lot of them would come down to valuers comments on the number of stories so it would be a case of applying and seeing how it comes back.

There will be a lot of work here for someone with the potential of no mortgage at the end of it. Personally I think you will need a fee charging broker as I cant see a fee free or estate agent broker putting in the time needed.

deanybee

Thank you ACG, I suppose it is worth it if i'm going to find out once & for all wether i can buy the place, now you say that it seems to make sense as to why i have got nowhere, I am surprised there is not more information out there there must be thousands of people in similar situations. thanks again

Edi81

Are you fully aware of the associated costs of buying a flat in a council high rise.

Councils don't have sinking funds for major works so if they decide to replace to lifts/windows or do major works you will need to pay a large bill.

deanybee

Yes I have heard some cautionary tales & new windows are already planned, it is a risk as the lifts need a modernisation but i believe i can rent it out & make a few quid if i can borrow the 45,000 asking price then rent it out.
thanks

Senior_Paper_Monitor

Not a chance of a buy to let mortgage on a right to buy property (if an attractive - in mortgaging terms - one).


£45K after RTB discount (in an area requiring high rise development) tells you that the it will not be mortgageable - and you have listed some of the reasons why.

Yorkie1

Do you know how much it can cost to replace lifts, and do you have the savings to pay for this?

Look at the last post in this thread. Yes, it's only one example I found on here, and it refers to quite a few years ago, but it shows how much the charges might be. You'd probably be looking at a 5 figure sum.

https://forums.moneysavingexpert.com/discussion/1949357

amnblog

1. Ask neighbours who currently own who they are mortgaged with.

2. Visit local mortgage brokers who may well have done a case in the block before.

Mokka

We have achieved this virtually unattainable feat and secured a mortgage offer for a RTB in a concrete high rise.

It is easier to go through a broker, if you can get a recommendation for a good one in your area, as this will save you from making mistakes (such as applying before checking your credit files etc.)

The bad news is that out of 3 lenders who will consider such properties only 1 is accessible through a broker (Santander). The other 2 (HSBC and TSB) are direct access only. This might have changed, as my research is from a year ago.
Still unable to buy my property, as I am living in a council from hell:mad:- hope yours is better.

castle96

did one 'like' this with Barclays (a few years ago now) - pre woolwich

Wh05apk

In most parts of the country, this would be impossible, however, London is unique, in that "almost" anything goes, normally it will simply be down to the valuers comments, speak to a local broker, and before submitting any applications, ensure they speak to the relevant lenders valuers, who will know the block, and know if it would be acceptable before you start laying out money.