Is buying a flat worth it?

diamondblue

Hi,

We are hoping to buy our first home, hopefully next year, but we can only afford a flat rather than a house. I was wondering is buying a flat a bad move as we would have to be paying ground rent and service charges?

Anyone who owns a flat or has ever owned a flat would you say you ended up paying a lot or a fair amount?

Don't want to jump in to buying a flat if all the costs are going to end up making us worse off?

eddddy

A few considerations to think about...

• The service charge is your share of the costs of maintaining and repairing the building. (e.g. Repainting the windows, repairing a leak in the roof.)

• If you bought a house, you would still have to maintain and repair the building. (e.g. Repainting the windows, repairing a leak in the roof.)

(so whether you are buying a flat or a house, you should look carefully at the condition of the building to see what repair bills might be ahead.)

• With many flats, ground rent is very low - maybe £50 to £200 per year. (But you should avoid flats with high escalating ground rents.)

• Some freeholders (or their managing agents) can be difficult to deal with, others can be easier.

• If a lease is approaching only 80 years left, you'll need to think about paying to extend it

need_an_answer

Find out the lease details and charges before you really commit yourself,they can vary hugely,and as with most things there are good and bad things associated with management charges.

The plus side is that communal issues are taken care of,the downside is that you probably have little control over them although all charges will be documented and you are entitled to see the accounts for the block in which you buy.

I personally would always try to avoid the very big management company developments,they can be more difficult to deal with so when looking if you are able to find properties that are managed by local or at least regional it does seem a slightly cheaper option.

I have several properties that are leasehold flats and whilst I would much prefer the properties to be freehold,leasehold is not always as bad as some people make out.
Its a good way to get onto the property ladder if you can't afford freehold.

ask to see copies of the most recent accounts if you are buying leasehold, vendors should have them available or at least be able to tell you their monthly/annual charge.

The service charge will vary considerably dependant on the type of things it supports,for eg if there is a lift or gated parking expect to pay a little more per month to cover the upkeep.

lena_halo

Personal preference also comes into it. I’ve just sold my leasehold flat and I will be sad to leave but it’s time to move to a house for us. Some people just love the convenience of a flat with the communal areas looked after through the services charges. Plus the security is great on the first floor and it’s cheaper to heat a flat.

claz83

lena_halo wrote: »

Personal preference also comes into it. I’ve just sold my leasehold flat and I will be sad to leave but it’s time to move to a house for us. Some people just love the convenience of a flat with the communal areas looked after through the services charges. Plus the security is great on the first floor and it’s cheaper to heat a flat.

I'm in exactly the same position. About to sell my very secure first-floor leasehold flat - I've lived there nearly ten years and been really happy there, but my service charge, council tax and ground rent were reasonable and my landlord's been super easy to communicate with. I'm buying a house and feel a bit overwhelmed by all the things I'll be responsible for: it's certainly reassuring to know that the buildings insurance and roof are being looked after when you're leasehold!

Smodlet

Flats can be more difficult to sell than houses as they appeal to a smaller market and come with all the issues you mention, reducing lease periods, service charges, unexpected huge bills for repairs to parts of the building you don't even use etc. I would choose a freehold house any day but appreciate that is not an option for everyone.

Have you considered widening your search area and seeing what kind of house you might get in a few years if you stayed put and saved up?

Whatever you decide, good luck with it.