Buying flat in a private high rise

Cooper_M

I'm hoping someone can give me some advice about buying a flat in a large high rise (20 storey). I know this forum regularly warns people about buying in high rises due to huge maintenance bills, but they normally seen to be talking about council blocks which have been neglected for years then suddenly get hit with major refurbishment. This is a new build tower in a completely private development so I'm assuming there wouldn't be much in the way of major works for at least the first 10 years? I would be looking to sell within that time anyway as don't want to live in a flat forever.

Does anyone have any experience of new high rises, and after what time the heavy maintenance bills started coming in? Ideally I would like this to be well after my time, as I'm also aware big bills coming up could affect its saleability.

Thanks!

00ec25

private or council you seem to have missed one salient point:

"There are very few lenders who will consider lending against any apartment in a property that is over six or seven storeys high, particularly if you're looking to buy outside London."

Read more at https://www.whathouse.com/mortgages-and-homes/everything-you-need-to-know-about-getting-a-mortgage-on-a-high-rise-flat/#5Hs42MB1A6RiZ7wD.99

Cooper_M

Thanks, but this one is in London and I got a mortgage offer easily enough. There are lots of big blocks going up in London these days so I don't think that's as much of an issue as it might have been in the past.

Lunchbox

Mortgage offer or agreement in principle? We recently remortgaged on a 10 storey block in London and found our lending pool severely restricted - literally 2 or 3 lenders with acceptable rates. Even our previous lender said they wouldn’t offer us a new fixed deal, despite it still meeting the published criteria on their website.

In terms of your specific question, one of the other blocks in our development is having its lift motor replaced, around 2.5 years post completion. There have been terrible problems with the lifts in all blocks, and I expect some will need replacing completely in the not too distant future. Sprinkler systems have an anticipated lifespan of 10 years. Just a couple of examples that might also be relevant to you.

silvercar

This is a new build tower in a completely private development so I'm assuming there wouldn't be much in the way of major works for at least the first 10 years?

Who knows? The effects of Grenfell Tower fire could demand retrospective fittings and alterations whether public or private.

Cooper_M

I have a mortgage offer with Halifax, I'm actually quite close to exchanging but am having some last minute doubts about whether I can really afford it, if maintenance costs are really that high. I didn't have a huge number of lenders to choose from, but I thought that was due to the salary multiple I needed - the broker didn't mention the height of the building as being a major issue, although he did say not everyone would lend on it. I'm quite scared to hear of lifts needing replacing after just a couple of years - I was thinking more like 20!

Re fire risks post Grenfell, I can't think what else could be required. I believe all blocks that size have to have sprinklers now, and given that it's currently under construction I can't believe they'd put flammable cladding on now, when everyone else is testing theirs and changing if necessary...

Does anyone have a good experience of a high rise...?!

BorisThomson

Have you checked that the cladding is safe? I wouldn't assume anything.

A lift in a twenty storey building is going to be in use continuously. I've no idea how long lifts last, but twenty years would be very surprising. Plus think about how the building looks now, and how it might look without any major works after twenty years. That might not affect you, but it will affect the resale value.

How much is the service charge?

Cooper_M

The service charge is £130 per month, which seems quite low to me and makes me think it doesn't include much in the way of contributions to a sinking fund, hence me worrying about big bills in future. In terms of major works, I was thinking 10-15 years which is probably just outside the time I'd plan to stay there. Does this sound unrealistic?

As far as I can tell the cladding is ok - it's made of a non flammable substance so assuming it's as they say it is, I think it should be ok. I can't get any more information from the developer other than that it's ceramic.

StumpyPumpy

Cooper_M wrote: »

In terms of major works, I was thinking 10-15 years which is probably just outside the time I'd plan to stay there. Does this sound unrealistic?

This could be a problem, though it seems a very short time for a new build. However, if that is what you are led to believe then you have to think not only of your time in residence but any purchaser's time too. If you think you are going to move in (say) 8 years time, but you think major works will be necessary in 10-15 years then you have to consider that you will be trying to sell when major works may be imminent which would reduce the price you could sell for as well as limiting your pool of buyers.

A private block near where I used to live has major works in the pipeline. This has put the brakes on the resale value making them worth about 60% of the value of nearby equivalents, and due to the length of time the works have been mooted (about 10 years to my memory. and they still haven't started yet) the price differential has been maintained for a long time and they take much longer than average to sell too. I know people there who thought they would be gone by the time the works were due but are now looking at having to find £78k to pay for their share of the bill as they can't find a buyer.

Personally, I'd want to have moved on long before there is even a sniff of upcoming works.

SP

Cooper_M

Thanks. Agree that I want to be out in good time ahead of major works, but the problem is I can't seem to find out how long it's likely to be before these come up. I'm guessing 10-15 years purely based on web searches as to how long things last - maybe an issue with the roof in 10 years, with the heating and/or water pumping systems in 10-15, new lifts in 15, replacement cladding hopefully not inside 20 as I'm told that's the biggie. So I'm not thinking of a major refurb in that time, just lots of different things that i feel may start to break down at a cost of several thousand per flat each. Although that's another problem, I can't find out how much these things would actually cost to fix either.

It seems the feeling on here isn't that positive about a high rise, but I'm really hoping for someone who actually lives or has lived in a block like this who could tell me if my assumptions are correct!

HampshireH

You should be provided with breakdown of exactly what your £130 a month covers.

Ask for the annual breakdown or proposed breakdown of costs. You can then see whether a "sinking fund" of any description will be formed by calculating the cost x number of flats to form the total value which will become available.

Should help you with making a more inform3d decision rather than speculating on what fund are being set aside for.