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

Norman_Castle

linzwebb wrote: »

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.

It could be argued that after buying at 26k even if you have to spend 44k on it the total will be 70k which apparently is its worth. Before looking for a mortgage I would research potential costs for high rise flats. I remember reading councils had been condemned after agreeing to excessively expensive or unnecessary work so the situation may have improved for leaseholders.

linzwebb wrote: »

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.

Is the £10,000 limit during the first five years. After which you will be liable for your full share of any major works costs?

Edit. https://www.gov.uk/government/news/flos-law-new-cap-for-council-house-repairs-comes-into-force

Now new directions are being issued to councils and housing associations which will force them to limit the amount they can charge for future major repair, maintenance, or improvement works when they are wholly or partly funded by the government.
Outside London the maximum level will be levied at £10,000 in any 5 year period, with a cap of £15,000 for the capital.

Pixie5740

Nnenne1 wrote: »

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.

Would I !!!! ever buy a flat, or rather the lease for a flat, in a high rise building especially not one that's on the 11th floor. RTB discount or not!

csgohan4

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.

Sorry but I disagree with most of your points. There's a reason by lenders don't lend on 11th floor flats thereby limiting the people who can sell to.


Don't forget their leased and the cost of renewing leases, ground rent? Service charges and unlimited repair costs...


No thanks, even if it RTB, because the discount will be eaten up up by said charges.