Social housing % in block of flats

mcmart

Hi all
Am just starting the process of a buying a flat in North London. I spoke to another estate agent in the area (not involved with my purchase but is handling a family members property) who said to be careful about the % of social housing in the block/estate I'm buying in. Doing a bit of digging on uksocialhousing.com I can see that the block/area does have a lot of social, however not sure if this includes shared ownership (which might be classed as social housing). All previous flat sale prices on Zoopla would point to this as they are a fraction of what they should be if bought outright.   

To be honest, I have no concerns at all about the area and it feels perfectly fine (I wouldn't have even thought it was an issue given how nice the flat is), I'm more concerned about lenders criteria and whether it will be an issue when I come to sell. There probably is a bit of snobbery mixed in as well if I'm honest and a bit wary of transient tenants etc. 

I'm guessing this is something a solicitor can advise on but just wanted to see if anyone had any experience of this? 

Thanks for your help

eddddy

mcmart said:

I'm guessing this is something a solicitor can advise on but just wanted to see if anyone had any experience of this? 

It's more of a question to ask a mortgage broker (or maybe lender).  A local mortgage broker might even have experience of putting applications in for specific blocks/estates, and know the likelihood of it being approved.

The local EAs should know as well, but be careful of the EA's motives. (EAs like to say things to scupper another EA's sale.)

The mortgage lenders are worried about 're-saleability'. They won't want to lend on a property that might be difficult to sell, if there's a slump in the market (and they have to repossess at the same time).


Edit to add...
Also think carefully before suggesting to your solicitor that there may be an issue about percentage of owner-occupation. The solicitor also works for your mortgage lender, and might feel duty-bound to alert the lender. That might result in the lender being 'spooked' and more cautious about lending.

ripley81

I lost a lot of money on my property because a high number of social housing was built opposite. Didn’t mind living here, but was stuck for years, unable to sell. Be careful! 

davidmcn

How old is the block? Was it originally built as social housing? If it is relatively modern then the planning consent may be available on the council website, which would tell you about any required percentage of affordable housing.

mcmart

eddddy said:

mcmart said:

I'm guessing this is something a solicitor can advise on but just wanted to see if anyone had any experience of this? 

It's more of a question to ask a mortgage broker (or maybe lender).  A local mortgage broker might even have experience of putting applications in for specific blocks/estates, and know the likelihood of it being approved.

The local EAs should know as well, but be careful of the EA's motives. (EAs like to say things to scupper another EA's sale.)

The mortgage lenders are worried about 're-saleability'. They won't want to lend on a property that might be difficult to sell, if there's a slump in the market (and they have to repossess at the same time).


Edit to add...
Also think carefully before suggesting to your solicitor that there may be an issue about percentage of owner-occupation. The solicitor also works for your mortgage lender, and might feel duty-bound to alert the lender. That might result in the lender being 'spooked' and more cautious about lending.

Thanks. The lender I'm speaking is to is from a local bank so hoping they'll be able to advise. Don't want to spook anyone but at the same time would rather know upfront if it causes an issue with lenders/re-sale. Will be super annoying as it's an amazing flat and would never ever have considered for a second it would be ex council. 

mcmart

davidmcn said:

How old is the block? Was it originally built as social housing? If it is relatively modern then the planning consent may be available on the council website, which would tell you about any required percentage of affordable housing.

davidmcn said:

How old is the block? Was it originally built as social housing? If it is relatively modern then the planning consent may be available on the council website, which would tell you about any required percentage of affordable housing.

It's 20 years old and is fairly established in the area - mix of old converted hospital buildings and more traditional new builds. Would never have known any of it was social to be honest until the other agent mentioned it!

mcmart

ripley81 said:

I lost a lot of money on my property because a high number of social housing was built opposite. Didn’t mind living here, but was stuck for years, unable to sell. Be careful! 

Resale is what I'm worried about to be honest! The area is great and wouldn't know a lot of it is social, so would have no issue living there at all

Norman_Castle

ripley81 said:

I lost a lot of money on my property because a high number of social housing was built opposite. Didn’t mind living here, but was stuck for years, unable to sell. Be careful! 

What was there before the housing was built?

mcmart

Norman_Castle said:

ripley81 said:

I lost a lot of money on my property because a high number of social housing was built opposite. Didn’t mind living here, but was stuck for years, unable to sell. Be careful! 

What was there before the housing was built?

It was an old hospital converted to flats/new builds in the late 90s

Norman_Castle

mcmart said:

Norman_Castle said:

ripley81 said:

I lost a lot of money on my property because a high number of social housing was built opposite. Didn’t mind living here, but was stuck for years, unable to sell. Be careful! 

What was there before the housing was built?

It was an old hospital converted to flats/new builds in the late 90s

How do you know? I was asking Ripley81.

wilfred30

Norman_Castle said:

mcmart said:

Norman_Castle said:

ripley81 said:

I lost a lot of money on my property because a high number of social housing was built opposite. Didn’t mind living here, but was stuck for years, unable to sell. Be careful! 

What was there before the housing was built?

It was an old hospital converted to flats/new builds in the late 90s

How do you know? I was asking Ripley81.

Then you should've quoted Ripley81 rather than be rude to the OP.