Council flat purchase?

Misteek

Hey guys

My friend is thinking of buying a new build perhaps 3 year old council flat under Right to Buy. It’s cheap but shes worried about future repair bills and service charges ( if their extortionate). For those who’ve done this or know the risks, is it actually worth buying, or is she  just signing up for expensive surprises? 

 Thanks.

ExEstateAgent

If it's only 3 years old there shouldn't be much work required for the forseeable future apart from routine maintenance, the council should be able to tell her what the current service charge is and if there are any major works in the pipeline. 

Council service charges tend to be reasonable but when any major works are required they can be very expensive because councils will have contracts with larger companies (rather than using some local builders). 

Misteek

ExEstateAgent said:

If it's only 3 years old there shouldn't be much work required for the forseeable future apart from routine maintenance, the council should be able to tell her what the current service charge is and if there are any major works in the pipeline. 

Council service charges tend to be reasonable but when any major works are required they can be very expensive because councils will have contracts with larger companies (rather than using some local builders). 

What would you do in her situation. Atm she doesn't  pay service charge . They don't ask for it. Maybe cus it's new ?

user1977

Misteek said:

ExEstateAgent said:

If it's only 3 years old there shouldn't be much work required for the forseeable future apart from routine maintenance, the council should be able to tell her what the current service charge is and if there are any major works in the pipeline. 

Council service charges tend to be reasonable but when any major works are required they can be very expensive because councils will have contracts with larger companies (rather than using some local builders). 

Atm she doesn't  pay service charge . They don't ask for it. Maybe cus it's new ?

No, because she's a tenant. She'd have to pay as an owner.

itsthelittlethings

Most tenants pay rent and service charge I thought.

Misteek

itsthelittlethings said:

Most tenants pay rent and service charge I thought.

She used to at her previous flat. But this new one. They don't pay. Maybe it's cus its new build ? I'm not sure.

marcia_

 I have never paid a service charge when renting. 

 If there are concerns she wouldn't be able to afford major repairs i would think twice before buying. 

 What if the boiler needed replacing, what if there was storm damage or burst pipes needed repairing? 

Misteek

She can definitely pay her own things because she works but I heard she has to chip in for major repairs for the entire block

marcia_

Misteek said:

She can definitely pay her own things because she works but I heard she has to chip in for major repairs for the entire block

 Yes she would but as you say its a new block there shouldn't be any major works soon. 

HampshireH

New builds are quite often not eligible for the RTB. Is she sure this one is eligible?

She will of course be responsible for repairs and maintenance. She will be expected to contribute to the following regular costs where applicable 

Fire safety
Communal cleaning
Insurance
Grounds maintenance 
Electric 
Water (if applicable)
Decorating communal areas (often every 5 years or so so could be in next few years)
Lift servicing if applicable 
Window cleaning if applicable 

gwynlas

Council managed blocks often have higher service charges that others as contractors have to meet local government criteria rather than just a managing agent sending loocal handyman to touch up paintwork fix leaky tap etc.
Also whilst she might know and like current residents councils are social landlords so anyone placed there might have issues that would perhaps preclude them renting from a private landlord.
Whilst RTB can work I think it best applies to houses or flats on smaller developments where majority are owner occupiers