Buying a flat above commercial - london

hazyjo

Newham is an absolute s-hole. You like it? Are we talking about the same place lol?!


If we hit a recession, they may not lend on a flat over a shop. They also might not lend on studio flats. Combine the two and you have an even bigger problem.


If it changes use to a dry cleaners (and prob others I'm missing), it might well be unmortgageable.


Knowing Newham, it is likely to either be a bookies, chicken shop (if A3 or whatever) or mosque (yes, we have had them in shops - one in Woodford for a start).


Personally wouldn't touch it with a bargepole, but horses for courses. Some like it there. Kirstie Allsopp has done a good job in trying to sell it on LLL, but even she turned round and said 'walk around the area, make sure you're okay with it' or words to that effect.


I have friends and family there.


Jx

LeagueOfWolf

Thanks all for your concerns! I am weighing out pros and cons! Does any one have ANY pros at all? Lol

And yeh I am putting down a 25% deposit as my wage isn't "london wage" so I can only get a small mortgage.

Where is your flat @Needhouseadvise? Whats wrong with it?

Hahaha anywhere is nice to me but then again I am from woolwich and I grew up on council estates. I tried to get a woolwich council estate but someone outbid me with a few weeks ago ... £180,000 for this nice big flat in a huge council estate complex I'm still mourning over that flat.

But like I said I have been looking for a while and Ive looked at a good 30 flats and bidded on about 5. I genuinely like this one for it's location and size I am starting to think that I have low expectations for a property compared to others though.

I'll send you privately KiKi dont think its on RM ?

Doody

There is lots to like about Newham - I live there, and have been around the area most of my life. I haven't got any more advice for you about the technicalities and pitfalls of buying a flat, I just wanted to say 'Welcome new neighbour' if you do get it.

needhouseadvice

Bexa wrote: »

Thanks all for your concerns! I am weighing out pros and cons! Does any one have ANY pros at all? Lol

And yeh I am putting down a 25% deposit as my wage isn't "london wage" so I can only get a small mortgage.

Where is your flat @Needhouseadvise? Whats wrong with it?

Hahaha anywhere is nice to me but then again I am from woolwich and I grew up on council estates. I tried to get a woolwich council estate but someone outbid me with a few weeks ago ... £180,000 for this nice big flat in a huge council estate complex I'm still mourning over that flat.

But like I said I have been looking for a while and Ive looked at a good 30 flats and bidded on about 5. I genuinely like this one for it's location and size I am starting to think that I have low expectations for a property compared to others though.

I'll send you privately KiKi dont think its on RM ?

If you're from Woolwich I'd definitely buy there. What with the Crossrail, whatever you buy is bound to shoot up in value once it's open. Don't give up hope yet! That's what happened to me and the week after I exchanged I saw several bigger properties that would have been much better for me in a similar price range. I know it's hard when you've been looking for a long time. It was a tough/expensive lesson to learn but there's ALWAYS something better out there.

This is going to be your home for the next few years. Given the economy you could end up staying there longer than you want to. Don't feel pressurised by what you perceive to be your lack of budget. In Woolwich you can definitely get a 1 bed in that budget.

LeagueOfWolf

needhouseadvice wrote: »

If you're from Woolwich I'd definitely buy there. What with the Crossrail, whatever you buy is bound to shoot up in value once it's open. Don't give up hope yet! That's what happened to me and the week after I exchanged I saw several bigger properties that would have been much better for me in a similar price range. I know it's hard when you've been looking for a long time. It was a tough/expensive lesson to learn but there's ALWAYS something better out there.

This is going to be your home for the next few years. Given the economy you could end up staying there longer than you want to. Don't feel pressurised by what you perceive to be your lack of budget. In Woolwich you can definitely get a 1 bed in that budget.

Haha you would think that in Woolwich it was affordable but if you have a look at zoopla/rightmove the 1 bed flats in Woolwich are going for £200,000 minimum. The rest are ex council that are also going for £180,000+ or cash buyer only. I tried for the only ex council that came up under my budget that allowed mortgage bidders but got outbid :mad: It was such a nice cosy flat too

I do like this flat above a shop and I know it's risky but I'm excited and Im going to leave it down the mortgage broker. He's requesting some insight from contacts who are surveryors from the big banks Lloyds halifax natwest nationwide etc. If they are able to deem the property resalable and offer a mortgage to ME.. then it means there is possiblity they are able to offer a mortgage to other people wanting to buy it in the far far future!. So lets see how that pans out! :j:j:j

needhouseadvice

Well, I guess if you're excited and like it that's the most important thing!

hazyjo

Nobody can tell you it's resaleable if we hit another recession. Are these the same banks that were lending 100%+ mortgages ?

If you're happy to stay there, it's not a prob.

Would also rather live in Woolwich than Newham.

Jx

LeagueOfWolf

hazyjo wrote: »

Nobody can tell you it's resaleable if we hit another recession. Are these the same banks that were lending 100%+ mortgages ?

If you're happy to stay there, it's not a prob.

Would also rather live in Woolwich than Newham.

Jx

Yes you are right but what goes up must go down and what goes down must come back up....so essentially we're on a forever roller coaster ride of our lives! :T

I am happy to stay there I am excited I hope the property is mortgageable it's all starting to kick in my getting a funny tummy!!!!

Ahhh Woolwich has had such bad stigma over the years its nice to hear someone preferring it over another area I will always rep South East london

KiKi

The main room is airy, I get that, and they've put laminate floor in so it looks newer. But it is SMALL. Really, really small. And you're right - that's an old, old building, and you will have to fix the bathroom and kitchen (no idea how that comes to £8k, to be honest, in a kitchen that has three cabinets or thereabouts!).

Before you get super excited, I recommend two things:
a) ask for the service charge percentage and the freehold accounts for the last five years.
b) work out the TOTAL cost of buying and repairing, service charges and ground rent for two years and add contingency for additional service charge bills. Work out the total cost of selling in two years, assuming that given the uncertain climate that prices do not rise much. Then see if you'll be in any better position to buy somewhere bigger.

I thought of a third:
c) Then work out the bills for living alone for two years. Compare the total cost of buying, living alone, selling in two years vs living at home for two years, and work out which one leaves you in a better position to buy somewhere nicer! Because, really, if your goal IS to move back home in two years and buy somewhere nicer then it makes no sense to buy now!

KiKi

KiKi

Just one last thing when I looked at the particulars - there's no bath, just a shower room. This definitely put people off my flat, and that was a one-bed. So just be aware. I distinctly remember my survey coming back saying that the main road and shower only would affect the re-sell, and I thought "well, I'm buying it, so clearly someone will want it" and it took me quite some time to sell in the end!!

Good luck, whatever you decide to do!