First time buyer. Flats

BridgetLo

Hello,

I am a first time buyer looking for a property in Manchester. I am looking for flats nearby the university and I also love the flats in converted mills.
I am a bit lost and would love your advise about to what extend buying a flat in a converted mill is a good investment.
I am a bit worried about the services charges that might be go up every year in buying a flat, whereas you do not have this type of charges in a house.
Any help would be appreciate it

hazyjo

Can you afford a house?


Is it for you to live in, or BTL (only you mention 'investment' and being close to the Uni)?


The lease will give details re service charge/ground rent. They will vary.


You don't have the charges with freehold (usually), however it may cost you as much in maintenance. Only difference is, you choose when/if to do what works are needed.

BridgetLo

Thank you so much for your reply! I could afford a house but outside Manchester, my budget is around 160000 but I think that buying a flat would be better in terms of living nearby the University.
I am also in love of the converted mills but the service charges are a bit expensive too.

But I guess these types of properties will not lose the value in case I want to sell them in the future?

hazyjo

BridgetLo wrote: »

But I guess these types of properties will not lose the value in case I want to sell them in the future?

Depends - property prices go up as well as down. If they are popular and not completely new conversions (for which buyers often pay a premium), they should be okay. Who's to say what will go in and out of fashion when it comes to property.

diggingdude

what sort of service charges/ground rent are you being quoted

SallyDucati

When you say 'near the University' which one? The converted mills near to Manchester Met Uni (and therefore the city centre, or further out by the University of Manchester (not sure there are any converted mills down there)

I think the main issue I would have with a flat near Manchester City Centre is the number of new builds going up and future values. There will thousands more units across the area (and no I'm not kidding!) where are all the residents going to come from? Just a thought for future re-sale etc.

ACG

It is unlikely the service charges will rise significantly if they are newly converted - you would like to think there is not too much that could go wrong. But it is a risk that they can rise.

eddddy

The service charge will be your share of the building maintenance costs.

Some types of buildings cost more to maintain than others, so this would be reflected in your service charge.

For example, if the building has period wooden windows, they will need to be painted periodically, whereas uPVC windows won't.

Or if the roof is getting old, and will soon need repairs...

Similarly, if the building has larger communal areas that need cleaning, decorating, carpeting etc, the service charges are likely to be higher.

BridgetLo

Thank you so much! I have a view of a flat in Victoria Mill, which is in Ancoats. I also have in mind areas like Hulme or nearby Victoria Bath, but this ones are not mills. I cannot afford the ones near Home.
You are totally right when you say they are going to be lots of new properties in the city in the following year. I am very lost! I love mills very much for I do not know if it the right thing to buy.

Thank you!

BridgetLo

They service chargest are around 1300 per year and ground rent 250 pa, 125 year lease length with 123 years remaining.

I have not seen the flat today, it might not be as nice as I think, there are just 2 windows in the whole flat...

cattie

As somebody who has owned both flats & houses & now living in a flat again with no intention of ever moving, the appeal of flats over houses for me is the fact that I don't have to sort out maintenance, insurance etc. myself.

As a house owner, unless you're living in a new property, there is always something that needs sorting, such as problem with the roof, overflowing or defectvie gutters, external decorations, up keep of the gardens etc. I'm happy paying a service charge that takes care of such issues.

We all own a share of freehold, so do have a bit more control over costs than if there were an anonymous freeholder.

Perhaps try to have a word with any other leaseholders in the flats to get an idea of how things have been during their ownership & if they are happy with the freeholder & management company.

The costs & length of the lease you mention sound quite reasonable to me, but then I live down south where costs are higher..