Studio Flat

ms_london

Hello 

I am looking for a bit of advice. Am considering buying a studio flat and am fortunate enough to be able to buy without a mortgage. The lease has 111 years left but my concern is due to the size of the flat, I wonder if I would have issues selling it down the line because some mortgage lenders won’t lend on a small studio flat. 

Any thoughts? 

user1977

What is its floor area? I think 30 square metres is the general cut-off point for mortgage lenders (assuming they're happy with studios at all). It's certainly going to be more difficult to shift than a flat with separate bedroom(s).

lika_86

I'd imagine the issue is more likely to be saleability. Studios are fine generally if you're single but if you are a couple then they become trickier because you can't ever shut the door on what the other person is doing, if one of you wants to sleep for example then it's difficult for the other person to really do much. If a mortgage is an option I'd choose a mortgage and get a one bedroom over a studio any day.

ms_london

user1977 said:

What is its floor area? I think 30 square metres is the general cut-off point for mortgage lenders (assuming they're happy with studios at all). It's certainly going to be more difficult to shift than a flat with separate bedroom(s).

Thank you. Yeah it’s just over 22, so very small. (I live in something smaller than that now, so the space doesn’t bother me)

ms_london

lika_86 said:

I'd imagine the issue is more likely to be saleability. Studios are fine generally if you're single but if you are a couple then they become trickier because you can't ever shut the door on what the other person is doing, if one of you wants to sleep for example then it's difficult for the other person to really do much. If a mortgage is an option I'd choose a mortgage and get a one bedroom over a studio any day.

Thank you. Certainly worth the consideration. I could get a small mortgage but wanted to avoid it if I could, but I’m probably being unrealistic. 

katejo

lika_86 said:

I'd imagine the issue is more likely to be saleability. Studios are fine generally if you're single but if you are a couple then they become trickier because you can't ever shut the door on what the other person is doing, if one of you wants to sleep for example then it's difficult for the other person to really do much. If a mortgage is an option I'd choose a mortgage and get a one bedroom over a studio any day.

I would say the same. When I bought my first flat, I said that I would only go ahead with it if I could afford at least a 1 bedroom flat, not a studio. With hindsight, it would have been better to get a 2 bedroom and let 1 room out to a lodger. I did that much later when I sold up and got a terraced house. 

Schwarzwald

ms_london said:

lika_86 said:

I'd imagine the issue is more likely to be saleability. Studios are fine generally if you're single but if you are a couple then they become trickier because you can't ever shut the door on what the other person is doing, if one of you wants to sleep for example then it's difficult for the other person to really do much. If a mortgage is an option I'd choose a mortgage and get a one bedroom over a studio any day.

Thank you. Certainly worth the consideration. I could get a small mortgage but wanted to avoid it if I could, but I’m probably being unrealistic. 

What’s the hesitation to get a small mortgage and get a 1-bdr instead?

eddddy

ms_london said:

Hello 

I am looking for a bit of advice. Am considering buying a studio flat and am fortunate enough to be able to buy without a mortgage. The lease has 111 years left but my concern is due to the size of the flat, I wonder if I would have issues selling it down the line because some mortgage lenders won’t lend on a small studio flat. 

Any thoughts? 

To a great extent, it's about buying at the right price and selling at the right price.

If it's a studio under 30 sq meters, it will eventually have to be sold relatively cheaply - because it won't be mortgageable, and maybe it won't be 'highly desirable'.

But for the same reasons, you should be buying it relatively cheaply.

Looking at it financially in terms of investment returns, studio flats might perform the same as, or better than, or worse than 'regular' larger flats. It depends on a number of factors.

arthurdick

If you are single and location rules and you are never going to move again, I would say go for it. 
Me and the missus recently viewed 2 studio flats in my ideal location in Pimlico, I would have gone for one of them because location was ruling my thinking, but, thank gawd my missus made me see  sense and pointed out that they were way too small for a couple to live in, even though I knew that,  location was  still ruling my thinking.
If I were single I would have moved into one of them knowing that i would never want to move  to another place.

So, if I were you, go for what makes you happier but if you can, try to get a very large studio where you could split a window and have some stud partitioning  to create a bedroom space, or, go for a 1 bed flat that needs doing up.

ms_london

Schwarzwald said:

ms_london said:

lika_86 said:

I'd imagine the issue is more likely to be saleability. Studios are fine generally if you're single but if you are a couple then they become trickier because you can't ever shut the door on what the other person is doing, if one of you wants to sleep for example then it's difficult for the other person to really do much. If a mortgage is an option I'd choose a mortgage and get a one bedroom over a studio any day.

Thank you. Certainly worth the consideration. I could get a small mortgage but wanted to avoid it if I could, but I’m probably being unrealistic. 

What’s the hesitation to get a small mortgage and get a 1-bdr instead?

Because I want the financial freedom so that I can work part time. A luxury I know, but willing to make the sacrifice on space. However, if it would be a nightmare selling down the line, then I will re consider. Even with a good deposit, with the way interest rates are at the moment, payments are still higher than I’d like.

ms_london

arthurdick said:

If you are single and location rules and you are never going to move again, I would say go for it. 
Me and the missus recently viewed 2 studio flats in my ideal location in Pimlico, I would have gone for one of them because location was ruling my thinking, but, thank gawd my missus made me see  sense and pointed out that they were way too small for a couple to live in, even though I knew that,  location was  still ruling my thinking.
If I were single I would have moved into one of them knowing that i would never want to move  to another place.

So, if I were you, go for what makes you happier but if you can, try to get a very large studio where you could split a window and have some stud partitioning  to create a bedroom space, or, go for a 1 bed flat that needs doing up.

Thank you for your input. Even if I wasn’t living in it forever, I could rent it out, but I don’t want to have issues selling down the line. For me, I think being mortgage free is preferable to location, so it’s certainly something for me to think about.