Purchasing A Council Property

Tony_H_3

We currently live in a three bedroomed semi and are looking to downsize via an exchange. I'm quite fussy about where I want to move to and the long term plan is to purchase the property we move to. I have found a nice flat which had a sales value of £87,000 which with the discount would make it extremely affordable. However upon checking on the "upmystreet" website properties in that area (not perfect) are going through the roof currently it is suggested the flat would sell for £198,000.

If we move to this flat and attempt to buy it in the near future will this be close to the price the council would sell it for.

The reason the price has increased so dramatically in my opinion is that it is within sneezing distance < 2 mintue walk from a massive new shopping complex. I simply could not afford to purchase this property if this is a true reflection of it's price.

Advice please.

michaels

With my rtb council sent round a valuer to do market valuation as start of rtb process.

Maisie

I don't think council properties are valued any less than other properties in the area even under the rtb.

gremlin

Hi tony

I bought my counci house last year and thought Id try to help youfrom my experience. The first thing I would say to you is if you do move in to the flat, get a price from the council straight away. With my council you are allowed three years from the date of quotation to buy that house at that price.

My council sent a valuer around (eventually) who spent 10 mins in the house, asked a couple of questions and then went on her merry way. Its a very long drawn out process. The value of the property (as I understand it) is the value of the property on the open market - but (and this is a big but) this valuation does not include any improvements made by you. Just the value of the property as the council would originally supply it. Also I would suggest you look at this . Here is the capping of the maximum discount you could be eligible for.
I would say that (here anyway) our property values are about 10-20% lower than privately owned houses in the same are, although as I said before this could be down to extra fixtures and fittings put in by homeowners.

Hope this is of some help

Tony_H_3

Thanks for all your replies, it seem's as if we will have to scrub this particular property from our list

Maisie

Tony . Have you thought about shared ownership?. Some councils do that. You buy half the property and rent the other half.

Trouble is when the time comes that you want to buy all the property the second half may be beyond your means. Although the first half you buy does go up in value and would possibly equalise both halves.

Tony_H_3

I would never consider this Masie. When you compare NAW (National Average Wage), state benefits & costs of goods and services I would do nothing to support such dramatic price increases. I bet the goverment are rubbing their hands together blinking people into thinking part ownership is acceptable.

Rant over!!

m00nie

wouldnt you be better of buying a smaller council house freehold rather that a council flat lease?

Tony_H_3

Are all flats sold on a lease basis? If the answer is yes then im going to end up with a seriously unhappy wife!!

Maisie

Good luck with your househunting Tony. East Anglia is a great place to live.

I don't live there but wish I did.

m00nie

Tony_H wrote:

Are all flats sold on a lease basis? If the answer is yes then im going to end up with a seriously unhappy wife!!

maybe different areas have different policies(im hoping as dont want to be the bearer of bad news ) ring up the area involved and ask is best bet, our area though all flats are leasehold