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

linzwebb

My mum has had to take her house off the market as it won't sell. She lives in a beautiful area just south of the Lake District. She has spent thousands on the house over the years in repairs/modifications. The prospect of renting it out for her is nil due to lack of renters in the area. She's stuck now. Doesn't that illustrate that buying any property is a risk?
I'm really grateful for the blunt opinions I've been given, as I am on a fact finding mission and my knowledge on this subject is small.
However I'm trying to weigh up the pros and cons, so can anyone tell me anything positive so I can see things from a different angle?
Thanks again x

Pixie5740

linzwebb wrote: »

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?

Think about it. If you're struggling to find a mortgage lender then it's highly likely any future buyers, if you ever sell, will also find it difficult to obtain a mortgage.

linzwebb

I get that - I'm aware the market to sell to may be restricted. I recently read though that lenders may become more flexible in the coming few years as more and more developers are building upwards, especially in cities.

Edi81

Yes, but those buildings are brand new and likely to be 100% owned from day one.
Read some of the horror stories of leasehold flats particularly ex local authority ones before committing to this.
How much are flats similar to yours going for? Is there anything on the listing stating "cash buyers only"?

ANDR£W

Dont forget that the property will be leasehold & the fact it's surrounded on all sides by social housing you will have to pay an annual premium for the upkeep of things like lifts,communal lighting etc also when the council decides to replace the windows in the future you will have to pay for you're windows as well as contributing towards scaffolding etc which won't be cheap.

Morgage_Confused

Theres some flats where I live that need "repairs". Each flat owner has to pay 76K to have the work done.

http://walton-on-thames.org/forum/viewtopic.php?f=17&t=9428&start=30

wullie

Tricky. People who bought their flats in a high rise in Oxford were hit with a £50,000 bill for renovation . I know you say yours is limited to £10,000 but can you afford that ? Not sure of your area, but is it possible to exchange for a house ? You'll still carry your discount with you if were lucky to get a house.

TrickyDicky101

Even if there is a £10k a year limit I would expect OP could still have a rolling R&M program of £10k a year for 5 years or some such. Not a risk I would want to accept.

Nnenne1

It's heard to get right to buy mortgages going by other posters, once you buy though, it doesn't mean that it'll be hard for subsequent purchasers to buy your home. It's just that mortgage lenders are a bit weary of rtb.

Negatives has been mentioned already and the main one being councils charging over the odds for needless repairs and batching them up in the process. Speak to other leaseholders in your block and find out what your council are like etc.

To me £23k is a great buy, heck cars go for more than that. Even if future buyers might struggle, I'm sure cash buyers will pay at least what you bought it for. We're not talking about 100s of thousands here.

It's a good investment for sure, pay slightly more than you need to, pay mortgage off quicker and you have equity already in the property.

Many people don't like people that buy under RTB so tend to be all doom and gloom and never suggest it's a good idea. If they suddenly are in your position to buy a flat for £23k, will jump to the chance for sure.

I'll say, go for it, it's a great idea.

minimike2

Nnenne1 wrote: »

It's heard to get right to buy mortgages going by other posters, once you buy though, it doesn't mean that it'll be hard for subsequent purchasers to buy your home. It's just that mortgage lenders are a bit weary of rtb.

Negatives has been mentioned already and the main one being councils charging over the odds for needless repairs and batching them up in the process. Speak to other leaseholders in your block and find out what your council are like etc.

To me £23k is a great buy, heck cars go for more than that. Even if future buyers might struggle, I'm sure cash buyers will pay at least what you bought it for. We're not talking about 100s of thousands here.

It's a good investment for sure, pay slightly more than you need to, pay mortgage off quicker and you have equity already in the property.

Many people don't like people that buy under RTB so tend to be all doom and gloom and never suggest it's a good idea. If they suddenly are in your position to buy a flat for £23k, will jump to the chance for sure.

I'll say, go for it, it's a great idea.

I am not sure you have read the post?

RTB mortgages are not hard to get. This has nothing to do with it being a RTB mortgage. It is because the flat is on the 11th floor of a block of council flats. That is totally different to mortgaging a 1960's 2 bed semi.

Your post is very ill-informed and should be disregarded by the OP.

You could offer me 10 of these and I wouldn't buy a single one. Your statement is baffling to say the least.