Ex local authority flat please help

[Deleted User]

Hi 
I need so guidance to hopefully put my mind at rest. I have made an offer on a flat and I am going through the formal mortgage application.

I am extremely worried about this because it is worrying I have good credit and I thought I would reassure myself by reading the lending criteria of virgin money. 

To me great concern I discovered the the lvt for ex local authority flats is 85% 

The flat is a 2 story maisonette. It was sold from the local authority in 2000 and again in 2009.  Is it still considered to be ex local authority.

I really think my mortgage advisor should have picked up on this when I explained that the freeholder is the local authority. 

So I'm I going to have to find an extra 4k 

david29dpo

Whats your point?

[Deleted User]

Apologies I thought the question was clear Would it no longer be considered a ex local authority property if is has been sold twice. 

david29dpo

Is it your deposit the problem?

[Deleted User]

So to be. Clear I want to know if a property stops being considered an ex local authority after it has been sold. Ie will I need a 15% deposit because 25 years and 2 owners ago it was most likely a council house. (If you don't know please don't respond I'm really stressed and I feel like you are trolling)

user1977

The question is whether it was originally part of a local authority development of social housing - that's always going to be "yes" no matter when the council first sold it off or how many owners it's had since.

Bookworm105

if it looks like ex local authority design then it is ex local authority design
does that have any bearing on the mortgage? NO !!!!

[Deleted User]

user1977 said:

The question is whether it was originally part of a local authority development of social housing - that's always going to be "yes" no matter when the council first sold it off or how many owners it's had since.

Thanks, really frustrating that mortgage advisor recommended that provider 

user1977

Bookworm105 said:

does that have any bearing on the mortgage? NO !!!!

Or YES !!!! if the lender considers it a higher risk and applies different criteria.

[Deleted User]

Bookworm105 said:

if it looks like ex local authority design then it is ex local authority design
does that have any bearing on the mortgage? NO !!!!

So this section of the lending criteria is only reverent to someone buying from the local authority in the first instance?  I 

"Ex local authority, housing association or MOD flats are acceptable to 85% LTV (but not for shared ownership"

really don't mind the hole local authority designation, tbo i thought if I have to buy a leasehold the council being the freeholder gives me some protection from huge ground rent increases 

user1977

[Deleted User] said:

Bookworm105 said:

if it looks like ex local authority design then it is ex local authority design
does that have any bearing on the mortgage? NO !!!!

So this section of the lending criteria is only reverent to someone buying from the local authority in the first instance?  I 

"Ex local authority, housing association or MOD flats are acceptable to 85% LTV (but not for shared ownership"

really don't mind the hole local authority designation, tbo i thought if I have to buy a leasehold the council being the freeholder gives me some protection from huge ground rent increases 

No, you'd be looking for things relevant to "right to buy" purchases if you were buying from the council (which is a whole separate bunch of restrictions).

Like I said above, this is an ex local authority flat, and it will never stop being an ex local authority flat.

The terms of the lease are what dictate any future ground rent increases, it doesn't change depending on who the freeholder is.

Lenders will be concerned about service charges (given councils tend to push through whatever improvements suit their own housing stock) and perceived poorer marketability within "council" blocks (obviously that's a bit chicken-and-egg if buyers have trouble getting mortgages...).