high rise mortgage

Senior_Paper_Monitor · 29 September 2014 at 10:35AM

deanybee wrote: »

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

I repeat - no chance of a RTB/BTL mortgage

KMMT · 29 September 2014 at 5:04PM

Oh I'm glad the right to buy will be making you a few quid! Sympathy for your 'predicament = none'. No wonder there are no council properties left for those that need it.

deanybee · 29 September 2014 at 10:07PM

thank you all so much, this forum is great i have so many things to ponder but i think the thread from yorkieone has explained why it is such a tricky area. Think i had better tread carefully also thanks Wh0apk i will take your advice, senior i am not looking for BTL mortgage i plan to to pay it off in 5 years then let it which i am entitled to do. KMMT i am looking for information not sympathy, if it doesn't work out then thats fine. i dont make the policy i have paid the rent for 20 years along with income taxes & all the rest of it so dont knock me for wanting a bit of freedom. thanks again

Mokka · 1 October 2014 at 9:57PM

You can try to apply for consent to let at a later date. No guarantee this would be granted and it would be only for a short term, with reasonable explanation for the reasons for moving out temporarily.

Prothet_of_Doom · 1 October 2014 at 10:31PM

Assuming that the council owns 75% of the flats, would they not have to pay 75% of the maintenance costs anyway ? The problem I see is that the council will have their own overpriced contractors and the 25% will be stumping up 40% of what it should have cost instead of 25%.
Are there any clauses in the lease that stop you renting it out ? Is the value really it's value ? So are you really getting a discount?

deanybee · 2 October 2014 at 5:35PM

those are interesting points, i guess i would have to claim RTb to see the lease? the service charges are quite low around £106 p/m but your suggestion that the council would be liable for the majority of any work done seems like a sound argument but i wouldn't know how to go about finding out that.

Mokka · 2 October 2014 at 10:42PM

Mayor works bill is shared equally between all the flats in the block (or to be precise, the shares are based on the rateable value of the flats), so the freeholder would have to fork out the shares of the social tenants. Which means they are less likely to do any serious works at all, even when badly needed.

The major works have to be listed on your section 125 document. If they are not, you will not have to pay for them for the next 5 years (but you will be liable after that).

S.125 will tell you all the potential extra charges you might be asked to pay.

You can ask for the property to be re-valued by the District Valuer, but if it was valued at £145k and is near central London, I wouldn't think you would get a reduction (and potentially a price rise).

Kaya01 · 1 December 2014 at 6:38PM

I have the right to buy my third floor flat in a block of 9 floors, four flats on each. It's a nice flat in a nice area and my bank initially approved everything as far as affordability is concerned. The whole thing came to a grinding halt when the surveyor recommended that they didn't lend because only two other flats in the block (of 40) are owned and they couldn't make a like-for-like comparison on price.

The mortgage amount is less than half the equity and I don't want to sub-let or re-sell, I just want to own the home that I live in. It is very frustrating that a man earning a good wage, with a good credit history can't get a short-term (18 year) mortgage, even though I can afford it. Not giving up yet, though. If only there were a lender who could lend to the person rather than against the property!