Can I afford to buy

Pitchshifter

Yes, I think you can afford to buy. Looks to me like you've got your head screwed on and can handle the bills. You're obviously a moneysaver and it will only get easier as time goes by (you might even get the odd pay rise). In the long run it will pay off, because you're not paying rent.

Go for it, the independence is great.

Cakeguts

pollyanna24 wrote: »

How much would renting cost you though? £300 for a mortgage is quite cheap. Would you be able to rent for that cheap? So you might be better of buying anyways.

It won't be cheaper to buy than rent if you have to move every two years to get a better job. Buying and selling is more expensive.

KiKi

GINGE93 wrote: »

Monthly wage: Approx £1100.00
Mortgage: £300.00
Service Charge: £100.00
Electric: £70.00 - almost definitely too high, assuming you shop around for a cheaper provider. I pay £39 a month, and I'm in a 2 bed, 3 storey house in an expensive area.
Water: £20.00
Council Tax: £55.74
Buildings and contents insurance: £10.00 - assuming it's a leasehold flat (with service charges) then you don't need buildings insurance, the freeholder pays that and it should come out of your service charges. Shopping around, I get contents insurance for around £55 / year for a much bigger property, so you've overestimated by some way.
TV & Broadband: £30.00
Mobile: £16.00
Cat insurance: £6.50
Food: £110.00
Petrol: £40.00
Income Protection: £15.00
Life insurance: £7.50 - what for? Get rid.
£100.00 for annual costs.

Annual costs:
Car insurance: £700.00
AA Cover: £120.00
MOT: £40.00
Car Tax: £120.00
TV License: £145

Be aware (in case you aren't!): in a leasehold situation you, as a leaseholder, will be liable for a certain percentage of all the freeholder's costs. This means that any costs the freeholder pays out (this could be fixing the roof, repainting the external walls, windows, communal areas, any communal electricity for lights or door intercoms, patio areas, fences etc), you have to pay your % - even if those costs do not directly benefit you. So if, for example, they decide to fix the roof and it's going to cost £5k, what percentage will you owe, and how will you manage that? Always a question to test yourself on. Make sure you find out if a) they have any works planned (esp major works); b) if there is currently a 'sinking' fund (rainy day fund) from all those historic service charges which have been saved up and can be used to pay for any emergency building repairs etc and c) what fees in ADDITION to the service charges each year have been charged to the leaseholders?

It's important that you know what your liability will be with regard to the leasehold percentage, and what the state of the accounts is for the freeholder and leaseholders. Your solicitor should check those things, but as a FTB you may not be aware to look for them or to ask about them.

HTH
KiKi

GINGE93

Hi everyone thought I would post to update things a little.

The flat is actually £61500.00
I have had a quote for a solicitor of £1110.84.

I would be putting a deposit of £6150.00 on the property. I currently have £8900.00 saved up.

This would leave me with £1640.00 as a rainy day fund. The flat is all electric. It has no boiler but a water heater and storage heater.

I would also save £690.00 per month while this goes through.

Would this look more realistic?

Thanks everyone for all your help so far.

p00hsticks

GINGE93 wrote: »

I would be putting a deposit of £61500.00 on the property.

I suspect you mean £6,150 (10% of the price).
Does the quote from the solicitor include all the search and land registry fees etc ?

GINGE93

Oops yes I meant £6150.00

Yes they said this includes land registry and searches.

Out,_Vile_Jelly

I lived in a flat with all electric heating/hot water and the bills were massive but there was never hot water when you wanted it. Just something to be aware of.

Have you got a mortgage offer yet? A broker might be better than a High St bank in your situation. Can be worth paying a one-off fee to get a good deal.