Future Proofing my life: Deposit saving then MFW journey in under 13 years

LadyWithAPlan

Think @Sistergold and @Watty1 have a point with  ' house love'  - I had a feeling I really liked it before going in and
just seen the one bed flat with garden and really  do like it - definitely can see myself living there very happily for years, lots of windows so light even on this grey rainy day  -  9 mins walk to tube and £40 cab to nearest airport - though be a £30+ cab ride home at least from soho. 

Any views on my offer?
I have just asked the EA the following questions as below but thinking given leasehold issue I may go in at £375k - with room to go up. 

On for £400k but only a 89 year lease - i know there will be govt changes but the EA suggested probably £7.5k-10k to renew. It last sold for £375k 4 years ago but that lease is a big issue (and might impact me getting a mortgage maybe although with an over 25% deposit
I have not looked at any other one beds - wanted 2 - but its quirky, v me  and loads storage .. 

it's definitely only a one bed - you could build a small office in garden but thats it.  The garden also has a patio with loads room for a bbg, chaors, awnings, cool lights..
Loads of storage  and unusual layout which I dont mind but can imagine others might. 
 
It is only one bed but has a dining room area off the kitchen.
You walk into the building (only freeholder upstairs) and front door means you go straight into lounge .. then galley kitchen .. into a dining area where fridge is - with a small door to the garden as well which looks onto wall but at least there is an exit that way
Then a little hall with more storage  into bedroom (bathroom built as an extension of bedroom)  - main doors in bedroom go to garden.

NO STAIRS 

I have asked the following - any other queries I should be thinking of?

1) current annual leasehold service ? Assume it covers building insurance. Is there a pot for roof repairs etc?

2) How old is roof  ? Repair history?

3) Boiler how old

4) Confirm  front drive belong to this flat (temp EA who showed me was unsure )

5) What is the arrangement with the garden as its just a wire across to the neighbours 

6) Has there been any talks with freeholder on lease renewal and costs - assume freeholder lives upstairs? 

7) How old is the property?

8) council band rate

MIP
I have now today filled in the form and see what my broker can get.. We are chatting in the morning
We (broker and I ) were thinking of a up to £475k MIP but I dont want that size of mortgage -  if i could get for £380k and £120k deposit thats £1550 approx pm - so £450 more than I am paying on rent ..  so not ridiculous and gets me moving - plus will leave me in a place to add to my pension/sipp and motivates me to find new work

I would be able to play the OP game  

My contract work is really not clear at present.. however a monthly payment of £1550 plus bills - is I believe a doable amount - So a £2.2k a month essential living cost - is OK  I believe.  It is a pity I did not start YNAB earlier  - as YNAB has me v focused on my spending - I am extra squirrely with my nuts!

beanielou

Exciting times ahead hopefully. 

skint_spice

Ooo exciting! So glad you liked it.

LadyWithAPlan

@beanielou fingers crossed - 2024 does feel like the year LaPlan grows up
I also am not using my CC beyond section 75 though  I have added a grocery on it this month to use it to the 10% for max credit score and was concerned re my tax bill.

@skint_spice it is not what I thought I would consider buying but the garden/patio and light and the relatively low cost cos I am going further out ... it could be a real winner but dont want to get too attached. This short lease concerns me somewhat. Plus if they bought it 4 years ago for £375k then they may want to get at least £385k ... but the lease is shortening so..  
I would have to have a lease extension pot in ynab!

The House Cupid does feel like he has struck - I have a funny feeling I am buying this place - slightly weird feeling but it feels right and I could have a pet again...

FILING MY OWN LTD CO ACCTS 
I have just had a chat with the chartered acctant I have used for year with various companies and went thru couple balance sheet clarifications but as I am a micro company and done all the reconciliations etc the filing of my own corp tax looks fairly simple and she feels confident I can do it.
I will also be taking dividends over and above my min PAYE. I have spent years paying far more tax as SE - at least I have used my SIPP contributions v wisely even whilst saving for a home.
I also can file CT  in a month or two so I can wait for my excess POA  to be refunded so no drastic worries on needing to cash in PB's.  So need to spend a couple hours finalising corp tax numbers then I can file self assessment and do the corp tax next month and will have clarity on where I am at.


YNAB AGE OF MONEY 24 days best yet!
Loved having income in to categorise  although not straight forward given tax year end stuff.. I cant properly add money in for next month fully til I am clear on final tax amounts.

SIPP £100 contrib today 
Had one invoice paid today of 4 owed by a company - all small but ..still I expected 3. grrrr.. I will hold cash back for tax (as opposed to adding to PB straight away) but put £100 into my sipp -
I do need some new pay on time clients. 
I do accrual accts so I always wait til I get paid to apportion my tax/sipp amounts.
I have set up in YNAB a 22/23  and a 23/24 tax category - though will move all out to PB's after the next few months of getting income back up, invoices paid and clarity on house buying and tax bills.
I can see my SIPP is down £500+ from its earlier Jan peak but this is of course a long game   I need to keep cash of course back for house purchase but I have 2+ months to get my annual sipp contributions up - I like to do £10k per tax year for the tax efficiency - only added £3.3k so far cos of lack of paid invoices.

SIPP evolution  since started April 5th 2020 when I added £500 on the eve of last tax date 19/20
On SIPP I can see in last 3.5 years I have personally added £40.8k  and value of SIPPs now - from contributions and mkts is approx  £50k   so in theory I have 'made' £9k+ - however it is more than this cos of saving of the HR tax portion  on my SE income ... and now I am paying via my ltd company so no tax at source  so saved there - havent worked out those figures  - not worth the effort me thinks. I am at least tracking what I add 

Grocery spend £18.79   so £139.82/£170    + £5 bulk   £24.49/£50
I dropped into the Ald on way home and picked up some groceries and some bulk baking stuff - seeds, flaxseeds, chia, raisins, stevia  plus extra kale and some GF beef burgers and more veggies.


I did also pay for tube which is not 100% essential spending to see flat but I will just have it in as essential travel as a woman does have to get out the house on occasion. I have a voluntary travle but that for late night cabs and trains to see friends and trips abroad etc

FOOD
Had more of my chicken orange rice extravanganza - with a large side of you guessed it - gently fried in coconut oil - kale  - I now miss it when I dont eat kale. 
I have had a few raisins I bought for baking - want to make  a gf fruit and nut loaf  ... so i need to not eat all the raisins. 
I have had no harib* or such sweets this year - I did have 2 lots of  crisps but sweets are my first one to win over 

I have bought some more cashews for cashew cream - I ate the pack I bought on Sunday .. so going to soak now - never tried it but KK assures me its good .. You soak the cashew nuts in water (apparently hot or cold then blend ) 

PennysIntoPounds

Ooohhh, property is sounding like it's a real contender! What (vague) area is it, if you want to say. That tube and airport access is a big win. I'm excited for you!

Cheery_Daff

Ooh, this is extremely exciting! All fingers and toes crossed!

South_coast

Definitely good to get clarity on whether service charges are collected on a regular basis and set aside for repairs, or whether they are collected from the leaseholders on demand (ie when there is an issue). Better for your cashflow to have the latter, but better for actually getting stuff done to have the former (just because you are willing to cough up your share that you have diligently set aside for that very eventuality thanks to YNAB telling you you should, doesn't mean the other leaseholders will have done)

I'd also check REALLY carefully about pets and being able to build a structure in the garden before you make any offers based on the assumption that you can do either. It would be handy if they could give you a copy of the lease for you to read. 

It might be worth thinking about asking the vendor to sort out the lease extension and then adding that on to the purchase price. At least you'd know it was sorted then and if it doesn't happen for whatever reason it's not you that's left with the risk of it being a short lease? Would depend if there are other parties interested in the flat though, as that could be a lot of extra hassle for them. 

TallGirl

Sounds so exciting that you might actually be buying something. Layout sounds perfect for one person or a couple 

LadyWithAPlan

Some great advice here from you all!

@SouthCoast I hadnt thought to ask re seeing  the lease paperwork so tx for that. 
There is only one leaseholder (me theoretically) then the freeholder who lives in the flat upstairs  I gather - looks like the terrace house  was split into top/bottom half at some point  -  1997 is when I can see the first sale of it - its an old victorian bdg. I have asked if there is a pot for repairs. The garden is private to (my) flat so I cant see why pets would not be allowed ... I will check. 
I also would have assumed my garden means my structures - again I will check.., 
There was someone there after me .. but  I am not buying in a rush as we all know. there are millions of flats in London - yes I really think this is fabulous but its also about the price..

Cheery_Daff said:

Ooh, this is extremely exciting! All fingers and toes crossed!

I know! I love where I live now but this is far enough North London that gardens become a reality .. and i really want a garden more than anything. If I get ot great - if I dont I will find something else cool - I will look at one beds with gardens in a couple other areas - maybe East london as well.

TallGirl said:

Sounds so exciting that you might actually be buying something. Layout sounds perfect for one person or a couple 

Yes there is a young female couple there (assumed from the pics) with great taste  - lovely  what Iook like original oak floors, full of character and nothing needs doing in a hurry beyond the lease  .. not a huge kitchen area - the tall fridge/freezer  is in the dining area  next to a butchers trolley for more space   but for me it is big enough .. I am clear on not overbuying and stressing myself out too much - and being able to invest in my life and sipp.

PennysIntoPounds said:

Ooohhh, property is sounding like it's a real contender! What (vague) area is it, if you want to say. That tube and airport access is a big win. I'm excited for you!

On northern Line - quite far North London ... and a 9 min walk  I timed myself to tube so..

Fortune_Smiles

How exciting LaPlan - fingers crossed for you 🤞

Fortune x