Restrictions on movement after purchasing HTB property

Miranda25

FirstTimeSolo said:

Miranda25 said:

silvercar said:

Miranda25 said:

Anybody ever tried to compare what would be cheaper in London please: to buy a new flat or not new flat plus do some refurbishments (assume flats are within the same area)?

IMHO HTB flats are overpriced because they attract those who can't afford a deposit. When it comes to selling a flat those that aren't new and so aren't in HTB attract potentially a smaller pool of buyers and this deflates the price. For this reason I suspect nearly new flats are better value.

Interesting. Let's say I buy HTB flat, live there for some time and then would like to sell it. Do you think it would be easier to sell HTB flat compare to normal flat (not on HTB scheme)?
Also I tried to talk to developers and find out that people in the UK prefer higher floors? (which is completely opposite to my home country).

The higher the floor the more expensive, same as in most countries such as the US. A ground floor flat and a top floor flat of the same size will differ massively in price, could’ve even 50-100% higher. 

It is much harder to sell a HTB flat, most that I’ve seen sold have been sold at a loss in recent months. 

I mean HTB equity loan flat (not shared ownership). 
What is easier to sell on the market- HTB flats or just normal flats please? Maybe some estate agents on this forum :-))
As I need to make my mind what kind of flat to buy :-))

FirstTimeSolo

Miranda25 said:

FirstTimeSolo said:

Miranda25 said:

silvercar said:

Miranda25 said:

Anybody ever tried to compare what would be cheaper in London please: to buy a new flat or not new flat plus do some refurbishments (assume flats are within the same area)?

IMHO HTB flats are overpriced because they attract those who can't afford a deposit. When it comes to selling a flat those that aren't new and so aren't in HTB attract potentially a smaller pool of buyers and this deflates the price. For this reason I suspect nearly new flats are better value.

Interesting. Let's say I buy HTB flat, live there for some time and then would like to sell it. Do you think it would be easier to sell HTB flat compare to normal flat (not on HTB scheme)?
Also I tried to talk to developers and find out that people in the UK prefer higher floors? (which is completely opposite to my home country).

The higher the floor the more expensive, same as in most countries such as the US. A ground floor flat and a top floor flat of the same size will differ massively in price, could’ve even 50-100% higher. 

It is much harder to sell a HTB flat, most that I’ve seen sold have been sold at a loss in recent months. 

I mean HTB equity loan flat (not shared ownership). 
What is easier to sell on the market- HTB flats or just normal flats please? Maybe some estate agents on this forum :-))
As I need to make my mind what kind of flat to buy :-))

That’s what I wrote in my post. A normal flat is easier to sell than a help to buy equity loan flat. 

Miranda25

FirstTimeSolo, 
When I am selling HTB flat would it be open to anybody or only to people who eligible for HTB properties (first time buyers)? And what happens after 2023 when the scheme would not exist? 
Do not tell me that I would get stuck forever in my HTB flat? :-))

FirstTimeSolo

Miranda25 said:

FirstTimeSolo, 
When I am selling HTB flat would it be open to anybody or only to people who eligible for HTB properties (first time buyers)? And what happens after 2023 when the scheme would not exist? 
Do not tell me that I would get stuck forever in my HTB flat? :-))

When you resell a flat you purchased via HTB, you can sell to anyone. It is no longer eligible for HTB when reselling.

You can either sell the flat or repay the HTB loan to the government and own all of your flat eventually. 

As most HTB are over priced, they are much harder to resell, hence they can seen being resold at a loss. 

Miranda25

FirstTimeSolo,
I can see that so many flats are without balconies in the UK (even in new developments). Would be a balcony an important factor in selling a property? Can you say that flats without balconies would be cheaper and cause slower process?

FirstTimeSolo

Balcony is always nice to have. It depends on whether the buy values a balcony enough to pay extra. I haven’t seen balcony flats cost more than similar flats without a balcony but I could be wrong. In the U.K. a balcony can only be used for a very limited time in the year due to our weather. A Flat with a terrace (much larger than a balcony) would definitely cost more than one without it. 

[Deleted User]

When you sell your EQUITY loan HTB flat, its then a “normal” flat to the next purchaser. They gain no benefit from HTB at all. However as you would have paid both a new flat build premium and the developer bumps up the price too because of the HTB, unless you remain in it for some times, you have to sell on the second hand market so many tend to lose money - some quite badly. 

Miranda25

FirstTimeSolo said:

Balcony is always nice to have. It depends on whether the buy values a balcony enough to pay extra. I haven’t seen balcony flats cost more than similar flats without a balcony but I could be wrong. In the U.K. a balcony can only be used for a very limited time in the year due to our weather. A Flat with a terrace (much larger than a balcony) would definitely cost more than one without it. 

You mean a roof terrace? Would it be only yours or for the use of all people living at that building?

Miranda25

Densol said:

When you sell your EQUITY loan HTB flat, its then a “normal” flat to the next purchaser. They gain no benefit from HTB at all. However as you would have paid both a new flat build premium and the developer bumps up the price too because of the HTB, unless you remain in it for some times, you have to sell on the second hand market so many tend to lose money - some quite badly. 

Densol, sorry, does it mean that if someone can afford to buy a flat without HTB then better to avoid the scheme? 
I did my search other way around. I even did not look at second hand market, I looked at new properties and thought that I would need help. 
After discussions on the forum I looked at second hand market and realised that I can buy some flats without HTB (and have 15% deposit).

FirstTimeSolo

Miranda25 said:

Densol said:

When you sell your EQUITY loan HTB flat, its then a “normal” flat to the next purchaser. They gain no benefit from HTB at all. However as you would have paid both a new flat build premium and the developer bumps up the price too because of the HTB, unless you remain in it for some times, you have to sell on the second hand market so many tend to lose money - some quite badly. 

Densol, sorry, does it mean that if someone can afford to buy a flat without HTB then better to avoid the scheme? 
I did my search other way around. I even did not look at second hand market, I looked at new properties and thought that I would need help. 
After discussions on the forum I looked at second hand market and realised that I can buy some flats without HTB (and have 15% deposit).

There is nothing wrong with HTB as a scheme as long as the flat you buy is aligned in pricing to other similar flats in the area. In some areas new builds are over priced but I have seen some new builds available on HTB that are priced more in line with regular flats.