Buying in London

GDB2222

sourpuss2021 said:

steampowered said:

diystarter7 said:

Always buy in the best possible location you can afford to live in or rent. 

Not sure this is good advice for London.

If Op had a £500k budget, would you suggest it is used to buy a studio apartment or 1-bed flat in Chelsea?

No, but I might suggest he buys a 3-bed flat in Chelsea and gets a couple of lodgers!:

https://www.rightmove.co.uk/properties/125714252#/?channel=RES_BUY

https://www.rightmove.co.uk/properties/85298482#/?channel=RES_BUY

I’d be chary about a council block, as the service charges can be eye watering. 

sourpuss2021

GDB2222 said:

sourpuss2021 said:

steampowered said:

diystarter7 said:

Always buy in the best possible location you can afford to live in or rent. 

Not sure this is good advice for London.

If Op had a £500k budget, would you suggest it is used to buy a studio apartment or 1-bed flat in Chelsea?

No, but I might suggest he buys a 3-bed flat in Chelsea and gets a couple of lodgers!:

https://www.rightmove.co.uk/properties/125714252#/?channel=RES_BUY

https://www.rightmove.co.uk/properties/85298482#/?channel=RES_BUY

I’d be chary about a council block, as the service charges can be eye watering. 

 Not bad in this case - £2400 annual service charge, and £10 a year ground rent.  But yes just 85 years left on the lease.

Skiddaw1

Aren't some mortgage providers reluctant to lend for high-rise block flats or has that changed? (I don't mean the cladding issues- just generally).

Martico

Would it be a realistic option to share a two-bed place purchased with a friend?
The ratio of ownership can be agreed and made official with a solicitor.
Upsides: more affordable, foot on a rung.
Potential downsides: one decides to leave / get married / start a relationship with someone you don't get on with.
You'd need to go into such an arrangement with open eyes, but it's a viable option for many in their mid 20s

Jonboy_1984

Just make sure you fully understand the lease term (remaining length) and the implications of it dropping below 85 years. I say 85 rather than 80 because that is when you need to act to extend it to keep it sellable in the future. 

Below 80 years it gets a lot more expensive (due to a thing called marriage value) and it can take a long time to deal with if the freeholder is awkward. It also means banks start to become iffy about lending on it, which makes selling it very difficult.

If it is in the 85-100 year length you can use the calculator on the leasehold advisory service to get an idea of costs.



Other things to be cautious about are ex-council blocks as the council or housing association are in control of the building maintenance that you then repay via service charges, and they are often high in costs for major repairs.

Make sure you are aware of the service charges, what they cover and whether any sinking funds are built up (long term pots to cover periodic costs such as redecoration of communal areas). You will pay a share of almost all maintenance so if the building is run down, run away…

If there have been any internal alterations make sure your solicitor is are aware and investigates whether they have been authorised by the freeholder. Permission is often required for things such as moving/removing walls and some property companies are apparently seeing compensation for unauthorised changes as a profit centre.

Make sure you are clear on the legal position of any parking and if any parking ticket companies have got their claws in.


Double check anything an estate agent tells you via your solicitor….