Pocket living flats

Ybe

Is a pocket living flat likely to be a better investment than buying a similar sized new build in a similar area on the open market using htb?  

K_S

@Ybe I've never done a mortgage for one but it looks and sounds like a new-build with a 20%(?) permanent discount and local buyer restrictions enforced through a section 106. It even mentions that some of the properties will be eligible for an H2B equity loan as well.

Not sure what you mean by whether it will be a "better investment" as normal properties can be sold on the open market while these flats can only be sold to people who meet the criteria defined in the S106.

Ybe

K_S said:

@Ybe I've never done a mortgage for one but it looks and sounds like a new-build with a 20%(?) permanent discount and local buyer restrictions enforced through a section 106. It even mentions that some of the properties will be eligible for an H2B equity loan as well.

Not sure what you mean by whether it will be a "better investment" as normal properties can be sold on the open market while these flats can only be sold to people who meet the criteria defined in the S106.

Whether it will be easy to sell on and whether I’ll make a loss from it (I.e. have to sell it for less than what I paid for it). 

K_S

@ybe

- Whether you will make a "loss": Impossible to predict but I doubt that the likelihood of the property losing/gaining value is siginficantly different from other new-build flats in that area. The pool of buyers will be smaller due to the sidelining of landlords/investors/non-FTBs.

- Whether it will be easy to sell on: It may be more difficult to sell on due to the smaller pool of buyers and the local-connection restrictions.

Ybe

But I guess (regardless of what happens to value), you pay less money overall for a pocket living flat.