Right to buy mortgage on a high rise council flat - HELP!!!

linzwebb

Hello experts!
I'm looking for some advice.
I've lived in my council flat for 12 years and have been given the figure of 26k to purchase it. It's been valued at 70k. As I'm outside of London, on the 11th floor of a high rise, I'm finding it impossible to secure a mortgage.
I'm a single working parent and this is the only way I can own my property. I have a very small amount of manageable debt, but am a low earner.
In a nutshell I've been through a mortgage broker who has had agreement in principles made, then when the mortgage provider has realised it's a high rise has backed out. One of these lenders was Nat West, who sent round a valuer yesterday who reported back to them that it was unmortgageable. I understand the issues with lenders not wanting to loan on concrete high rise blocks, but I'm really getting anxious and frustrated now. It's a nice block which has always been well maintained, is in a great area, has secure parking, no structural issues...
I'm currently paying around £400 in rent per month so paying a tiny mortgage is no problem.
Has anybody here recently managed to secure a mortgage for a high rise council flat outside of London, and who did you use?
The mortgage broker has now said he can't help me.
Thank you in advance x

jjj1980

I believe Nationwide may be one that will lend on high-rise flats. Might be worth a chat with them.

linzwebb

Thanks jjj1980, Nationwide were the first ones the broker tried and they said no unfortunately.

TrickyDicky101

This is a terrible idea. You have a secure tenancy at the moment and don't have to concern yourself with the potentially substantial repair & maintenance costs. The moment you buy it you become liable for them directly. If you get landed with a £25k+ bill 2 years down the line how are you going to pay it? There's a reason why few will lend on high rise...

linzwebb

This is the only way I can own my own home. I would like future security for my daughter. I also know that a few years down the line, should I decide to, there is excellent rental potential due to the area. However that is not something I'm planning to do as we're both happy being here for the foreseeable future.
I'll have to pay an annual charge for maintenance and have been given the next 5 yrs scheduled works of which I would be expected to contribute around 1%. This is around £2000.
My paperwork clearly shows me that current legislation limits the amount payable by leaseholders for major works to £10,000 irrespective of the total.
I will be saving dead money paid on rent - for my daughter and I.
Thanks for your advice though.

minimike2

I agree with Tricky.

You aren't providing any security for your daughter by doing this. Quite the opposite in fact.

Think about WHY you are finding it so hard to get a mortgage on it, then think do you really want to put yourself in that position? Don't be blindsided by being a property owner. Your "dead money" might just end up costing you less than what it could do it you purchase the place.

linzwebb

Thanks for responding.
How am I not providing security for my daughter? Isn't buying any property a risk?
As it is, my £400 per month is spent on rent, when a mortgage on 26k would be just over £100 per month. The monthly maintenance charge would be £100pcm. The difference would be saved. As it currently stands, I'm not able to save much each month at all so surely this would be a benefit?

minimike2

Because you are crating a huge potential liability for yourself and potentially ending up with a flat you will not ever be able to sell in the future, locking yourself into a financial money pit for the rest of your days.

minimike2

Also to add - The flat isn't "worth" £70k if no one is in the position to buy it.

Most people would not pay consideration to such a property unless in the centre of London in a desireable area (hence your difficulty in mortgaging it). So you could be paying £26k for something worth £0 in terms of realising any potential future lump sum.

IAmWales

This is a nightmare idea. What if legislation changes and your liability for repairs ie open ended? Even if it doesn't, there's no limit to how many times you can be billed that amount.

When you come to sell your market will be very limited, primarily to cash buyers. Expect to get £50K for it, less if any hint of repairs in the future.

Look at stories from others that have bought in your situation. It doesn't end well.

linzwebb

Why might I not be able to sell it? I genuinely don't know why and am grateful for your input. My flat is in a great area very close to the centre of Manchester. How could it be such a bad investment?