buying a council flat ?

travelmonster

is it worth buying a council flat block of r 20 flats in 5 story I'm London using the right to buy discount ? also after 5 years it could be sold ?

is it worth buying a council flat ? in terms of saleability etc ? what's the general consensus?

elsien

Far too vague a question. I've seen some council flats I'd happily buy and others I wouldn't touch with a barge pole.

glosoli

I guess the general consensus is proceed with great caution. Check other threads on this forum where buying a council flat has led to massive repair and maintenance bills. Also you would be giving up what otherwise is a secure tenancy.

travelmonster

I should have clarified this info is for my mate. he wants to move out in a few years.

travelmonster

has anyone else successfully sold a council flat in London for profit ?

Lilla_D

Plenty of examples from clients. You (your mate...) buy with a discount and unless prices really crash, you walk away with a profit after 5 years even after accounting for inflation, costs etc. But as per above, it all depends on the property itself, how easy it is to find a lender for it, what repair bills you might face, what the service charge will be, how long a lease you get with it, etc.

travelmonster

Lilla_D wrote: »

Plenty of examples from clients. You (your mate...) buy with a discount and unless prices really crash, you walk away with a profit after 5 years even after accounting for inflation, costs etc. But as per above, it all depends on the property itself, how easy it is to find a lender for it, what repair bills you might face, what the service charge will be, how long a lease you get with it, etc.

oh cheers for the info there ! who will determine repair charges ? and lease amount? also what is service charges ?

elsien

The process and information about leases etc in here.

https://www.gov.uk/government/publications/thinking-of-buying-your-council-flat--2

travelmonster

cheers for that elesien

forgotmyname

Wifes friend bought a Council flat and had to extend the lease to sell it, £16,000. And she has to pay a service charge/yearly fee.

Estate agent valued it at the same value the houses across the road were being sold for. Even she thought they were mad with the valuation.

travelmonster

forgotmyname wrote: »

Wifes friend bought a Council flat and had to extend the lease to sell it, £16,000. And she has to pay a service charge/yearly fee.

Estate agent valued it at the same value the houses across the road were being sold for. Even she thought they were mad with the valuation.

did she find a buyer ? or is she is in the process of selling it ? as to the service charge . is that just like a ground rent ? and was it proportionate or a rediculous figure ?