First time buyer: one bedroom in London

hazyjo

This thread mentions LPS.

https://forums.moneysavingexpert.com/discussion/4855646

What is it you're confused about?

It's non-standard construction. They can be hard to get mortgages on. Usually for cash buyers only.

redefinr

Ok fair enough looking in details now I understand is a bit of a pain in the !!! - I never heard of this before.

I'm having a look on auctions too but they all seem to have very short lease. Shame, there are some really interesting properties such as this one:

https://auctionhouselondon.co.uk/lot/?lotID=88285

need_an_answer

If you are not experienced in auctions I would suggest that you possibly avoid,or at least go to several as a bystander to see what figures the properties actually achieve

B_DOG

I tried a few years ago to get a mortgage on one of these, proved impossible. It's only for cash buyers. At least redifnr's EA is upfront about it being unmortgageable, mine wasn't.

muhandis wrote: »

This method of construction was quite widely used for council housing during the 1950s and 1960s, there are several variants - both houses and flats (low and high rise). Generally this type of construction is not acceptable to mortgage lenders.

Might be best to steer clear.

redefinr

need_an_answer wrote: »

If you are not experienced in auctions I would suggest that you possibly avoid,or at least go to several as a bystander to see what figures the properties actually achieve

yeah definitely not practical with auctions, i may stay away.

hazyjo

redefinr wrote: »

yeah definitely not practical with auctions, i may stay away.

I'd change 'may' to 'will'.


Auction properties usually have something wrong with them. It's (usually) up to you to find out what (sometimes it's obvious). Probably a very short lease, or NSC, subsidence, or something else that's making them unsellable on the open market to those needing mortgages. Often high risk properties. You also have to spend money before the auction and you're committed once you've signed at the end of the auction. It's like exchange.

redefinr

I will definitely stay away

Crashy_Time

hazyjo wrote: »

I was not generalising. I was pre-empting your usual statements about how I live in London (I don't) and how I don't want prices to drop (I do).

What is it you don't get? Yes parts of London are dropping. If someone wants to buy a HOME, then buy a poxy HOME. ARGHHHHH. Yes, they may go down a bit. They may go down a lot. If you have nothing relevant about the actual area and price range the OP is looking in then why are you still here?

DONE - I ain't getting into this tiresome boring tennis match with you.

No idea where you live, I am simply saying that there is some serious price cutting getting started in London, and it seems to be big drops - 25k or 50k+ at a time, which just shows how detached house prices have become from most people`s economic reality, and that these drops will affect places where Londoners have been moving to and buying property.

Crashy_Time

redefinr wrote: »

I was trying to get a viewing for this flat:

https://www.rightmove.co.uk/property-for-sale/property-83378555.html

It seems like a big space in pretty good condition. There area too is alright for me (I used to live around).

The EA said the flat is a "lps concrete construction" and he said lenders are usually not giving mortgages for this type of properties. Didn't really understand the meaning behind it and he wasn't too clear about it either - he just advised me to speak with my mortgage lender in order to save my time.

It's an ex-council but i think is looking pretty alright, it has a balcony too. Service charge are £2000/year and includes how water, ground rent £10/year.

EA said there is currently an offer but because of this 'lps' apparently people cant get mortgages for it?

Can anyone shed a light into this?

Thanks

IMO anyone interested in this should look at picture 7 for a while, try to visualise One Third of a Million pounds at interest (small interest at the moment it must be said) and then run away very fast. The good news is that Boris is doing his level best to ensure that over-priced property at this level crashes very hard. Even looking at the photos and thinking "Quarter of a Million Quid" makes me feel ill TBH.

redefinr

Crashy_Time wrote: »

No idea where you live, I am simply saying that there is some serious price cutting getting started in London, and it seems to be big drops - 25k or 50k+ at a time, which just shows how detached house prices have become from most people`s economic reality, and that these drops will affect places where Londoners have been moving to and buying property.

Definitely, I can see prices dropping 10,20 and sometimes even 50K. But I personally can't imagine it will drop even more, at least not that quick.