Buying a highrise council flat in city centre

muhandis

Unless the rules for Right-to-buy differ across councils, I don't think this is accurate. From a council RTB FAQ

https://www.lewishamhomes.org.uk/your-home/tenancy/right-to-buy-scheme/right-to-buy-frequently-asked-questions/#_Can_I_sell -

"You can rent out your property as soon as you complete the purchase."

skint_chick wrote: »

You can't rent it out for the first five years

hazyjo

muhandis wrote: »

Sure, there's a risk of that happening. It's all about whether you think the potential return is proportionate to the risks associated with buying a high-rise ex-council flat.

I do, but you (or the OP) may not.

Indeed. But it's not a risk of it happening - it's a fact. There will be roof repairs/replacement if a flat roof, and there will be lift replacements. It's just whether they can get out in time to dodge that bullet.

Also, as above, it's likely to be unmortgageable. That means auction and/or cash buyers/investors.

If the OP buys and gets hit with a large bill when selling, or if they get notice of works within the next couple of years around the time they eventually sell it, they will find it VERY hard to sell to an investor.

I'm not saying don't do it, I'm telling the OP to consider things that they won't have thought of, or won't be aware of. Major things. Flat roofs will last 10+ years rather than 100+ years, and lifts will only last 20 years or so if lucky. Probably nowhere near as long in a council highrise. Window replacements are also a favourite of theirs. Not to mention general repairs. No way is that £100 going to cover everything, nor is there likely to be a sinking fund...

muhandis

As I said earlier, I don't dispute what you are saying could happen and completely agree that anyone looking at it needs to be clear eyed about the potential issues that could crop up. And it's great that you have described them in detail.

But I guess we'll have to agree to disagree whether the chance to buy a city centre ex-council flat at 33k (which as per what the OP said sells for 70-80k cash in the open market) is worth the risk or not.

hazyjo wrote: »

Indeed. But it's not a risk of it happening - it's a fact. There will be roof repairs/replacement if a flat roof, and there will be lift replacements. It's just whether they can get out in time to dodge that bullet.

Also, as above, it's likely to be unmortgageable. That means auction and/or cash buyers/investors.

If the OP buys and gets hit with a large bill when selling, or if they get notice of works within the next couple of years around the time they eventually sell it, they will find it VERY hard to sell to an investor.

I'm not saying don't do it, I'm telling the OP to consider things that they won't have thought of, or won't be aware of. Major things. Flat roofs will last 10+ years rather than 100+ years, and lifts will only last 20 years or so if lucky. Probably nowhere near as long in a council highrise. Windows are also a favourite of theirs. Not to mention general repairs. No way is that £100 going to cover everything, nor is there likely to be a sinking fund...

Samfre

I understand there might be lift replacements in the future but I can't see any major upgrades happening as this was done about three years ago and to my knowledge this was the first one since it was built

Samfre

Good points. Particularly the first one that is what has stopped me so far. A family member have promised me to assist for the deposit for buying a house. I am just worried the flat will count for nothing in the eye of the lender and the fund I am able to use now for a house will be tied up. At best £10000 is the best assistance I might get.

Owain_Moneysaver

You're a council tenant and presumably have security of tenure on a social tenancy.

The council will cover repairs and replacement of kitchen and bathroom on their repair schedule. They will cover all building repairs and maintenance and service charges through your rent.

If you are out of work then housing benefit is likely to cover most or all of your rent.

If you buy your flat and cannot pay the mortgage, your home is at risk of repossession.

In many cases the long-term advantages of home ownership outweigh the short-term advantages of social housing, and you end up with owning a nice house for a lot less than a non-right-to-buy. For a high-rise council towerblock I don't think there is a long term. In ten years' time (despite recent refurbishment) it might be demolished for 'regeneration'. Even if it isn't, you will never own a nice house. It will always be a council tower block.

I'd be happy to live in one as a council tenant, but own a flat in one - no way.

Personally I would look at applying for different council housing or even a house swap to get to a council house, even if that means more rent to pay in the short term. Then use right-to-buy to buy a house. Or a low-rise flat or maisonette (preferably not with flat roof or deck access) can be a good compromise if they're available.

Owain_Moneysaver

Samfre wrote: »

I understand there might be lift replacements in the future but I can't see any major upgrades happening as this was done about three years ago and to my knowledge this was the first one since it was built

Councils are quite able to spend money redoing work that was only done a few years ago.

It may have been a new lift three years ago but perhaps next year they'll decide as policy that all lifts have to be firefighting lifts, or have some new disabled access feature, and the fact that yours is only three years old won't stop it having to be redone.

hazyjo

Samfre wrote: »

A family member have promised me to assist for the deposit for buying a house.

As a gift or a loan? (Excuse me if I've missed it, didn't see when glanced back through comments.)

ethank

My issue with council/HA leases is that they will have refurbishment programmes every 10-20 years.

I recently read of a block in London where a leaseholder was asked to pay £146,000 towards rerfurbishment.

https://www.theguardian.com/money/2019/may/18/a-terrible-shock-council-flat-owner-bill-tustin-estate

Ask the Council if they have recently done a dilapidations survey on the block, or if they have a programme of works for the refurbishment?

buglawton

OP did say in 1st post that 'building has been upgraded so it is now in good standard'. And later that the cladding is safe. But yeah, council could potentially try to pull a fast one. Flat may be worth £200k on open market so providing there are no reselling catches, probably still a no brainer.