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  • FIRST POST
    • Curious18
    • By Curious18 6th Jan 18, 7:36 PM
    • 2Posts
    • 0Thanks
    Curious18
    Right-to-buy poor credit
    • #1
    • 6th Jan 18, 7:36 PM
    Right-to-buy poor credit 6th Jan 18 at 7:36 PM
    Evening all,

    Hope you are all having a restful weekend. I have a few questions as I am determined to get a mortgage this year, but I don't want to act on it if it's not the right time. I want to buy my one bedroom flat which I rent from the council however I do have a considerable amount of debt (4000) and on Experian my credit rating is 'fair'. I have lived in the property for 3 years and a half.

    My questions are as follows:
    1. Will I be able to purchase having bad credit and debt?
    2. Will my interest rate be considerably more?
    3. Does anyone have any named brokers which specialise in lending to high rise blocks (I live on the 19th floor and I have been told it will be difficult to find a lender.


    Thank you in advance.
Page 1
    • csgohan4
    • By csgohan4 6th Jan 18, 9:26 PM
    • 4,553 Posts
    • 2,841 Thanks
    csgohan4
    • #2
    • 6th Jan 18, 9:26 PM
    • #2
    • 6th Jan 18, 9:26 PM
    How much deposit, how much is your income, how much is the flat worth after discount e.t.c.


    Need more information,


    a Broker is your best port of call to individual advice tailored to you.


    Do you plan on selling after a certain time to profit from the RTB?
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • davidmcn
    • By davidmcn 6th Jan 18, 9:40 PM
    • 7,863 Posts
    • 8,042 Thanks
    davidmcn
    • #3
    • 6th Jan 18, 9:40 PM
    • #3
    • 6th Jan 18, 9:40 PM
    I very much doubt that now is the right time for buying a 19th floor council flat, even if you had the cash sitting ready.
    • Cakeguts
    • By Cakeguts 6th Jan 18, 9:43 PM
    • 4,424 Posts
    • 6,359 Thanks
    Cakeguts
    • #4
    • 6th Jan 18, 9:43 PM
    • #4
    • 6th Jan 18, 9:43 PM
    You have a council flat and so there is a lot of research you need to do. Buying an ex council flat is usually and extremely bad idea because once you become a leaseholder and not a tenant you have to pay the service charge and for any repairs to the buildings. The repairs for the buildings can cost each flat 1000s but the tenants don't pay it. Only the leaseholders have to actually pay it.

    You probably won't get a mortgage from anyone for a 19th floor flat.

    There is a chance that this is also not a good thing for you personally to do if you have debt and bad credit because one you own this flat if you can't pay for anything like a mortgage you could easily become homeless.
    • Red-Squirrel
    • By Red-Squirrel 6th Jan 18, 9:44 PM
    • 2,793 Posts
    • 7,447 Thanks
    Red-Squirrel
    • #5
    • 6th Jan 18, 9:44 PM
    • #5
    • 6th Jan 18, 9:44 PM
    You would be much better off staying as a social tenant.

    Getting on the 'ladder' isn't the be all and end all. You have a secure home, its worth a lot more to you as it is than it would ever be if you bought it, in fact it would be a liability.
    • Lioness Twinkletoes
    • By Lioness Twinkletoes 6th Jan 18, 10:40 PM
    • 1,299 Posts
    • 4,633 Thanks
    Lioness Twinkletoes
    • #6
    • 6th Jan 18, 10:40 PM
    • #6
    • 6th Jan 18, 10:40 PM
    As Cakeguts mentioned, you'll have to pay services charges. For a flat in a tower they can be as much as 150 a month. If major works are required for example, roof repairs, window replacement, lift replacement (to name but a few) you'll be looking at bills that could be as high as 25k.

    Personally, I wouldn't buy a flat in a tower block.
    Last edited by Lioness Twinkletoes; 07-01-2018 at 9:21 AM.
    • Curious18
    • By Curious18 7th Jan 18, 7:53 PM
    • 2 Posts
    • 0 Thanks
    Curious18
    • #7
    • 7th Jan 18, 7:53 PM
    • #7
    • 7th Jan 18, 7:53 PM
    Thank you all so much for your replies.


    Yes it was for this reason I wanted to buy it. To profit from the RTB. I am on a 5 year contract and even though I have never had any issues. It is quite possible for them to bring in new social housing income thresholds. I am currently on 30k. Yes, I am aware of the ridiculous service charge and repair charges the leaseholders have to pay but I would be able to take that out of whatever I make from having tenants.
    • Red-Squirrel
    • By Red-Squirrel 7th Jan 18, 8:01 PM
    • 2,793 Posts
    • 7,447 Thanks
    Red-Squirrel
    • #8
    • 7th Jan 18, 8:01 PM
    • #8
    • 7th Jan 18, 8:01 PM
    Fantastic.
    • Cakeguts
    • By Cakeguts 7th Jan 18, 8:30 PM
    • 4,424 Posts
    • 6,359 Thanks
    Cakeguts
    • #9
    • 7th Jan 18, 8:30 PM
    • #9
    • 7th Jan 18, 8:30 PM
    If you have tenants in your RTB flat where are you going to live? Rent somewhere else?
    • Lioness Twinkletoes
    • By Lioness Twinkletoes 7th Jan 18, 9:43 PM
    • 1,299 Posts
    • 4,633 Thanks
    Lioness Twinkletoes
    Yes, I am aware of the ridiculous service charge and repair charges the leaseholders have to pay but I would be able to take that out of whatever I make from having tenants.
    Originally posted by Curious18
    Don't be so naive. Of course you can't.

    Assuming you get rent of 1k a month (ballpark, I have no idea where you live). You'll have to service a mortgage and service charges out of that. Don't forget it's taxable income. You might also have to pay managing agent fees. Maybe your tenant finds a raft of items that need repairs and every month is costing you another 500, then 100 and so on.

    What if they stop paying rent and refuse to leave? What if your tenant trashes the flat before leaving? How will you manage a period of potentially 6 months with no rent and then get the property back to find it needs 5k worth of repairs?

    Then, six months, maybe a year or two in and you've got a 25k bill looming. Where are you going to find the money to pay that? A LOT of LA's will not permit investor landlords (also known as non-resident landlords) time to pay. They get 14 days, as per the lease. Some, mine for example, MIGHT offer a 2 year interest bearing repayment period if the leaseholder can demonstrate severe financial hardship. So you are still looking at monthly payments of over 1k per month on top of your mortgage payments, service charges etc, etc.

    Add to this the fact you are unlikely to be able to secure a mortgage and this hair brained scheme is looking less and less likely.
    Last edited by Lioness Twinkletoes; 08-01-2018 at 5:44 AM.
    • csgohan4
    • By csgohan4 7th Jan 18, 10:11 PM
    • 4,553 Posts
    • 2,841 Thanks
    csgohan4
    If your rent includes the service charge and maintenance, good luck finding a tenant who is willing to pay over market rates
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • katebl
    • By katebl 8th Jan 18, 9:56 PM
    • 624 Posts
    • 314 Thanks
    katebl
    If you have tenants in your RTB flat where are you going to live? Rent somewhere else?
    Originally posted by Cakeguts
    Presumably under a bridge...
    • HampshireH
    • By HampshireH 8th Jan 18, 10:54 PM
    • 712 Posts
    • 756 Thanks
    HampshireH
    Have you checked you have a right to buy?.

    You say you have a 5 year contract. Therefore this implies fixed term. Usually a right to aquire may apply in this case which is often a lower discount the a secure tenancys preserved rtb.

    What discount have the council confirmed you would receive.. 50% ?
    • cjdavies
    • By cjdavies 9th Jan 18, 2:58 AM
    • 3,365 Posts
    • 3,594 Thanks
    cjdavies
    Thank you all so much for your replies.


    Yes it was for this reason I wanted to buy it. To profit from the RTB. I am on a 5 year contract and even though I have never had any issues. It is quite possible for them to bring in new social housing income thresholds. I am currently on 30k. Yes, I am aware of the ridiculous service charge and repair charges the leaseholders have to pay but I would be able to take that out of whatever I make from having tenants.
    Originally posted by Curious18
    My advice is to go for it, I wish you all the luck.
    • Norman Castle
    • By Norman Castle 9th Jan 18, 8:00 AM
    • 7,097 Posts
    • 5,873 Thanks
    Norman Castle


    Yes it was for this reason I wanted to buy it. To profit from the RTB.........I would be able to take that out of whatever I make from having tenants.
    Originally posted by Curious18
    Its our regular rtb troll. Don't waste your time.
    Don't harass a hippie. You'll get bad karma.

    Never trust a newbie with a rtb tale.
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