Buy flat in GII Listed Building as investment with sinking fund - smart idea?

htcclub

I have heard many will simply avoid Grade II listed buildings due to the higher costs associated.
I have seen some I am interested in, and if the sinking fund is substantial, I am thinking this may not be a bad purchase.
I am 100% looking to make money when I sell in 5+ years.

I know windows, plastering are of the order of double+ in cost versus a normal build.
How much typically do the big ticket items cost like the roof cost?
(Someone mentioned half a million for a quote for a listed building roof - was that a joke?)
Anything else besides the roof?

Thanks!

user1977

It's going to depend largely on the method of construction and what elements are listed. If the roof is just a bog standard slate roof (as many are) then it's not necessarily going to cost any more than normal to maintain, but obviously you won't have the option of replacing it with concrete tiles.

AdrianC

The sinking fund is no more or less than a savings account towards future work.

If it's "substantial", then that's because the leaseholders have been putting more in than has being spent.  Given that expenditure is also likely to be considerably higher than a non-listed building, then that suggests payments in are likely to be winceworthy.

But what price all that character?

Half a mill for a roof?
Well, it's entirely possible, depending of course on scale and how integral the roof is to the listing...
Here's a property where the re-roofing will cost twelve times that...
https://www.nationaltrust.org.uk/appeal/support-oxburghs-roof-appeal

AFF8879

As a general rule, I don’t think anyone would see flats as a way of making money in a 5 year timeframe given trends in the housing market…. Obviously there will be exceptions 

gwynlas

Expenses will depend on the building and construction. I have lived in both a large detached houuse divided into flats and a Georgian terrace divided into flats neither of which had excessive money spent on them during my ownership. Whether you will see an increase in value over 5 years would be dependent on local housing market.

NameUnavailable

AFF8879 said:

As a general rule, I don’t think anyone would see flats as a way of making money in a 5 year timeframe given trends in the housing market…. Obviously there will be exceptions 

That's a very sweeping statement! What trends? For many people buying a flat is the only viable option, for some they prefer a flat to a house and having someone else look after the building.

If prices increase over the next 5 years, and there's no real sign of them NOT doing that, then it will apply to flats and houses (exceptions being higher rise flats which need recladding perhaps).

As for buying a flat in a listed building, there's far too many variables to offer any kind of advice. I think you would need a surveryors opinion on the condition of the property and then a guess as to what may need doing in that timeframe.

htcclub

AFF8879 said:

As a general rule, I don’t think anyone would see flats as a way of making money in a 5 year timeframe given trends in the housing market…. Obviously there will be exceptions 

That's a good point, for where I am looking HPI is 1.6% for flats and 2.9% for houses. Comparing this to mortgages rates now and when I remortgage in 2 years, I can see the flat breaks even (cost of mortgage vs gain in HPI) whereas the house would make about 0.5% profit per year, taking HPI gain and mortgage cost into consideration. hmmmmmm this makes me reconsider if I should be looking at flats. 

Thanks for the other responses on Listed buildings, I think I will pass on this specific one - it looks like it needs new electrics throughout and it's 4 storeys!