A 'what would you do in this situation' dilemma - opinions welcome!

NameUnavailable · 14 July 2020 at 12:26PM

I have a choice of 2 properties I'm interested in, one is a small 2 bed older house the other is a 1 bed flat.

House - further away from where I work, nice enough area. Will need about £60K mortgage and needs about £10K of work doing to bring it up to standard (awaiting some reports to come back on wiring, damp etc).

Flat - nearer to work, located in a very nice area where there are much fewer properties for sale, no work required and price means I could buy outright, no mortgage or debt.

I live alone so a 1 bed property is OK in that sense. I previously had a flat and suffered massive issues with our freeholder and other leaseholders in disagreement about works require etc. which went on for years. I vowed not to buy another flat but of course the majority don't have those issues and the flat in question seems well maintained and there is a management company in place.

So smaller leasehold home but mortgage free or a freehold house, mortgage and a fair list of work to do to it......

I'm really torn between the options as they both have good and bad points, although being debt free in the current environment with job security being a question is very attractive.

What would you do? Anything else I should consider? Thanks.

Marvel1 · 14 July 2020 at 12:32PM

Freehold house - I will be glad of the extra space/storage.

DCFC79 · 14 July 2020 at 12:35PM

House all the way, always lived in a house, I dont like the idea of rising costs involved with a flat eg if this needs replacing.

newlywed · 14 July 2020 at 12:39PM

Outside space with sole use would win.... having a Flat and a communal garden with irrational neighbour during lockdown has reinforced this.

newlywed · 14 July 2020 at 12:40PM

Or maybe neither is quite ideal and so keep looking?

MaryNB · 14 July 2020 at 12:41PM

With a 2 bed you have the option to get a lodger and can use the rent to overpay the mortgage (up to £7,500 rent from a lodger is tax free). Also you have more scope to increase the value of the house. And no freeholder and management company hanging over you.

Management fees with the flat could be offset by reduced travel costs. In my case I'm looking at flats closer to the work because the cost of the management fees is offset by the reduction in travel costs (incurred if I bought a house really far out - in an area I'm not too keen on to begin with).

What's the lease left on the flat? Is there a risk of having to extend it anytime soon?

If I were you I'd go with the 2 bed house if you like the area. If you don't rent the second room, you could use it as an home office - if, like many of us, you might be WFH more often going forward. Second bedroom gives you more options.

GixerKate · 14 July 2020 at 12:43PM

freehold house all the way.

RelievedSheff · 14 July 2020 at 12:44PM

If it had to be one of the two it would be the two bed house every time.

dimbo61 · 14 July 2020 at 12:50PM

You can afford a house and do the work that needs doing to your tastes.
No noisy neighbors above or below you.
You might be able to rent out the spare bedroom.
You have lived in a flat so know most of the downsides.

eidand · 14 July 2020 at 1:17PM

freehold house, no debate

SallyDucati · 14 July 2020 at 1:24PM

Another one for a freehold house. I moved out of a flat where I lived for 18 years into a house a couple of years ago. Just not being 'surrounded' by other properties is worth its weight in gold. And as for dealing with management companies - even the best ones can't avoid 1 awkward leaseholder causing issues and holding things up.