Advice on buying council flat

annakins

My partner and I have been a council tenant for quite a few years and were told we are eligible to buy our flat at a discounted cost. We have just received a valuation back and although the purchase price itself is fantastic with a big discount, there is a list planned maintenance works over the next 5 years.. This amounts to around £30,000 in total including the cost of a new roof! We would be liable for half of this as the property is a house converted into two flats. I am struggling to understand how this all works; if we buy our flat and the neighbours already own theirs then what involvement do the council still have in repairs? Also, how do they expect us to find £15,000 upfront to pay for repairs? I am hoping to get some advice from someone who has been in this situation before, we really do love the flat and would be able to get it at a fantastic price.

BlackBird75

If you buy the leasehold, who keeps the freehold to the building?
The council?

csgohan4

annakins wrote: »

My partner and I have been a council tenant for quite a few years and were told we are eligible to buy our flat at a discounted cost. We have just received a valuation back and although the purchase price itself is fantastic with a big discount, there is a list planned maintenance works over the next 5 years.. This amounts to around £30,000 in total including the cost of a new roof! We would be liable for half of this as the property is a house converted into two flats. I am struggling to understand how this all works; if we buy our flat and the neighbours already own theirs then what involvement do the council still have in repairs? Also, how do they expect us to find £15,000 upfront to pay for repairs? I am hoping to get some advice from someone who has been in this situation before, we really do love the flat and would be able to get it at a fantastic price.

Asking about RTB you need to be thick skinned so be prepared

Buying a house is more than just cheaper than rent, you still have to maintain the house/flat.


If you buy the flat, presuming you being leaseholders and the Housing association being freeholders, you will be at the mercy of ongoing repairs and service charges , ground rent e.t.c as you would in a non RTB.




Buying your flat does not release you from these repair obligations. Council has no obgliation to repair your property once you buy, you cannot have your cake and eat it. Council discount and get free repairs, I don't think so.


Below are examples of where people thought RTB was done for the wrong reasons


https://forums.moneysavingexpert.com/discussion/5789909/new-roof


https://forums.moneysavingexpert.com/discussion/5789909/new-roof




Going RTB also means you lose your secured tenancy status and if you default your mortgage you can potentially lose your house




You need to balance can you really afford it, based on your income and potential repair liabilities

jonnygee2

I own a council flat too. I can help a bit here.

We would be liable for half of this as the property is a house converted into two flats. I am struggling to understand how this all works; if we buy our flat and the neighbours already own theirs then what involvement do the council still have in repairs?

The council is still the freeholder. They will manage repairs etc and then charge you through them. Most day to day stuff will be covered in the service charge, but councils don't operate a fund of spare money so when there's major works, you get charged separately.

So, the council will still be responsible for maintaining the exterior of the building, communal areas etc.

Also, how do they expect us to find £15,000 upfront to pay for repairs?

Each council is different, but I believe all have repayment plans of some sort. Mine, for example, offers to spread the cost of major works over 10 years interest free (which, when you think about it, is extremely favourable)

Ultimately, you need to find out how much the monthly payments will be and make sure that you can actually afford them. Other than that, it isn't too much to worry about in my opinion - essentially you are paying to maintain the property, which is what all home owners have to do anyway.

Smodlet

So who should pay for roof repairs? Property ownership = responsibility. Whatever you ultimately buy will require maintenance for which you will have to pay. Buying a flat will attract far more costs than any other type of property for the simple reason the block has to be maintained as a whole. You don't get to opt out of paying towards the roof because you're on the ground floor, for instance. You still need a roof over you. I would never buy any leasehold property unless it was either that or homelessness and certainly never a flat for this very reason.

I suggest it makes more sense to remain council tenants for as long as you need to save up a large enough deposit to buy a freehold house or at least a leasehold house. You are extremely lucky to be council tenants, after all especially of a council with the money and the will to maintain their properties to a good standard. Not all local authorities are in this position. Just read other's experience posted on this board only today.

00ec25

annakins wrote: »

if we buy our flat and the neighbours already own theirs then what involvement do the council still have in repairs?

because you are not buying "the flat" you are buying a lease of the flat. The building itself remains the property of the freeholder. The freeholder is responsible for repairing their own building, for which the lease will allow them to pass the cost on to you as the leaseholder.

did you really expect repairs to be done at no cost to you?

annakins wrote: »

Also, how do they expect us to find £15,000 upfront to pay for repairs?

you get a loan like normal people do when presented with a bill they cannot pay

BlackBird75

I think it's not too bad in smaller blocks.
But the really large blocks of flats can be a minefield for flat leaseholders...

Yes standby for the middle class hypocrites who criticise tenants buying their council homes, yet feel entitled to inherit a million pound detached house they did nothing to earn...

If the cap fits....

jonnygee2

you get a loan like normal people do when presented with a bill they cannot pay

This would normally be a bad idea. Councils have repayment plans. These may or may not charge interest but are always much more attractive than taking out private debt.

silvercar

As others have said, you are buying the leasehold and the council still owns the freehold.

We would be liable for half of this as the property is a house converted into two flats.

I wonder if you and the other flat would have the right to buy the freehold off the council. From that point you and the other "owner" would then choose when to do repairs and who should you employ and costs etc.

BlackBird75

jonnygee2 wrote: »

This would normally be a bad idea. Councils have repayment plans. These may or may not charge interest but are always much more attractive than taking out private debt.

Exactly.
It's a ridiculous idea to normalise debt like this.
I don't think Smodlet is British anyway, so he/she probably doesn't have much experience of how councils operate.

Cakeguts

When you buy a flat you only buy the right to live in it which is a lease. You don't buy the building. The building in your case will continue to belong to the council. The council can then make you pay for any repairs to the building so it they replace the roof your half of the cost of that will be £15,000.



There can be large sums of money needing to be paid for maintenance of council owned property.



Ex council flats often don't sell for as much as non ex council flats so you need to work out whether you will spend more in maintenance charges than the flat is worth. This will only become a problem if you lose your job, can't pay the mortgage and have to sell the flat. There are no benefits to pay a mortgage so if you don't have savings to pay the mortgage if you lose your job you may have to sell it. If you can't pay the mortgage for a long time the flat may be repossessed by the bank. If it is repossessed the council will not rehouse you.