Need help & advice (stressed FTB)

Calidad

Hello,

I’ve put an offer in for the following property for 250k. Pictures are generic, but floor plan is accurate.

https://www.rightmove.co.uk/new-homes-for-sale/fullscreen/image-gallery.html?propertyId=74988287&photoIndex=0

I am at pre-exchange - i.e. nothing signed but commited to solicitor fees.

Now a little context:

I have a big deposit - about a 65% LTV. It’s just myself although my girlfriend hopes to move in later on in the year. She’s currently in Italy and we maybe plan to be in the property for 5+ years before maybe moving on to buy our ‘family home’. I feel we’ve been a bit naive during the process, and I’m now only starting to wise up a bit after doing more research.

MAJOR WORRIES:

Depreciation value. It’s a new build that has been empty 2 years (one of the last to go in block of 40 - and apparently had 3 higher offers fall through before dropping to 250k literally before I viewed it). Sold as seen. We’ve had a good look and see no obvious issues. It was originally listed at 280k. Developer now wants rid of final 2/3 flats and we’ve apparently got a good deal. But will I likely make a loss when selling?

Service charge is £144 a month. Building has a lift. G\R is £250 PA rising every 10 years in line with RPI. Lease is 123 years but concerned about sellability.

Electric heating. Didn’t even think about this at the time but now read it’s costly. EPC is D oddly, but it is a first floor middle flat.

PROS:

Good location in centre of town, near shops, train station etc which we currently need - ready to move into, good sized flat and nicely finished - and we both like it.

I’m 30, keen to get onto the ladder, pretty much restricted to leasehold in this area on my budget, but I’m worried I’m making a big mistake, and I’m better to cut my losses at just the solicitor fees?

Thanks for reading and sorry for a long post, but any advice works be greatly appreciated.

G_M

You're stressed. You're worried abot multiple aspects of this purchase.


Keep looking.

davidmcn

Possibly more useful link:

https://www.rightmove.co.uk/property-for-sale/property-74988287.html

Can't see anything obviously terrible about it other than living inside what looks like a disused DHSS office.

Slinky

Regarding prices, you have access via the links on RM to all the previous sales in the block. Can you work out from these whether your one looks like the bargain they claim it to be or whether it's over priced? You could try lowering your offer if you feel so inclined. They can either accept or decline it depending on how much they want rid of the last of them now.

Doozergirl

davidmcn wrote: »

Possibly more useful link:


https://www.rightmove.co.uk/property-for-sale/property-74988287.html


Can't see anything obviously terrible about it other than living inside what looks like a disused DHSS office.

I think you're pretty close to the truth there. It looks like they've taken advantage of PD rights to turn offices into residential. Once the current fittings have dated (which admittedly, are good quality - I can name the brands of much of what I can see as it's the sort of thing we use), there's nothing special about the building. In fact, it's pedestrian.

OP, if it represents value compared to other similar sized flats locally, then it's no more risk than any other purchase. Is it? Or are you paying a premium for the renovation?

The benefit of it being a renovation is that you're not going to get too much in the way of movement and the structure of the building is solid. Snagging lists should be smaller.

Calidad

@ Slinky, according to RM, I can see other flats that went for 295k, and various others between that amount and the 250k for mine. A couple sold for below 250k as well, although the EA told me that my flat is one of the largest (and the service charge budget breakdown % according to the flat confirms that it is I believe). So I would say that in relation to the rest of the block I have a better deal, though by the EA own admission it was overpriced at 280k, and the ones that were sold around that price probably were too.

@Doozergirl I think it used to be a college, at least at one point. But you’re right it does look like an office block building, if it was out of town i’d very worried, but it is literally a one minute walk from the centre, so that’s slightly reassuring.

But in general I’m worried about the new build premium deprecation if I’m looking to sell in 5 or so years, especially as i’ll have to pass a £144 monthly service charge or so onto someone?

Perhaps I’m overthinking?

Thanks for the replies all. Really kind.

Doozergirl

It sounds like the new build depreciation has already taken place.

How much is a pre-owned flat of similar size in the area?

Cakeguts

I had a quick look and you can buy much better flats in much nice places than that one for a lot less. You need to have a look on Rightmove. If you buy a new 2 bed flat for £250k and people can get them for less new when it is 2nd hand they will all have to have pretty much the same asking price to sell so I can see this one losing quite a lot of value the day you move in. Why do you think the builder has had to reduce the price?

Doozergirl

Cakeguts wrote: »

I had a quick look and you can buy much better flats in much nice places than that one for a lot less. You need to have a look on Rightmove. If you buy a new 2 bed flat for £250k and people can get them for less new when it is 2nd hand they will all have to have pretty much the same asking price to sell so I can see this one losing quite a lot of value the day you move in. Why do you think the builder has had to reduce the price?

I looked too, but I didn't see one nearly as big as the OPs.