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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To sell my house to buy a flat in a falling market?

30 replies

Biwurlu · 24/09/2019 08:16

I'm currently in a house and moving to a more expensive area.

Only thing I've really liked has been a flat.

The house price index shows that prices are falling in that area (5% in the last year and with brexit I guess this could continue).

I've had several family members say it's a mistake to move to a flat from a house especially with a falling market. But it's the only half decent thing I've seen (although worried about neighbours).

Do you think it could be a disastrous financial decision to move to a flat?

OP posts:

plunkplunkfizz · 24/09/2019 08:18

What kind of house and what kind of flat?

Detached house to new build flat? No chance. Mid terrace to top floor townhouse flat? Might work.

Original poster

Biwurlu · 24/09/2019 08:30

Detached house to 30 years old top floor townhouse

OP posts:

Original poster

Biwurlu · 24/09/2019 14:38

Bumping my boring question 😂

OP posts:

Dongdingdong · 24/09/2019 14:49

Personally I'd find it difficult to go from a detached house to a flat. Have you lived in a flat before? More often than not they're susceptible to higher levels of neighbour noise than a house, especially a detached one. If that sort of thing doesn't bother you then no problem, but if you're noise sensitive I'd think carefully.

Also, is the flat you've seen a leasehold or freehold? If the former then you need to look closely at service charges and ground rent.

What about outside space as well - won't you miss having a garden?

Original poster

Biwurlu · 24/09/2019 16:17

It's share of freehold.

I'm very noise conscious, but my current place is a bungalow that's barely detached with a suspended floor. So it's actually pretty noisy - more than any flat I've lived in any city. So think this flat with solid floors between and only one person below could be quieter

OP posts:

Dyrne · 24/09/2019 16:25

Is it just you? Or DC / a DP as well? How much stuff do you have? Are you happy to get rid of lots? I’m presuming you have to move?

How much equity would you have, how big would the mortgage payments be, and how long would you be planning on staying there?

Gfplux · 24/09/2019 16:32

A top floor flat will mean you will not hear any neighbour above you although you may get complaints about the noise you make.
I have lived in a house, house, flat, flat, flat and house. I/we have enjoyed both. It is a lifestyle thing.
Our next and final move will probably be to (a top floor) flat.

Original poster

Biwurlu · 24/09/2019 17:23

It's just me and dh. We have too much stuff but we both want to get rid of lots. And it has a guarage with parking space in front of it so can use that for storage.

Would be planning on staying there for a few years, not forever. We just about have enough equity in the house to own it outright. But it will be pretty much all of our wealth that we've build up over our lives (exc pensions) so need it to be a good store.

Complains about noise is fine, I want something quiet and already thinking that once I move into a flat playing music loud or watching a movie with the volume turned up will never happen again.

We plan to travel more so a flat appeals and we like the idea of a garden but haven't ever made much use of ours.

OP posts:

WarshipWarrior · 24/09/2019 17:33

God no thats mental! I'd never move back to a flat purely because of the leasehold hassle. If it isnt leasehold with a management company then it's even more of a faff paying for repairs etc getting all the neighbours to chip in etc. No. Just no.

MsPepperPotts · 24/09/2019 17:54

Sounds like a good idea to me!
I am going deaf quite quickly so I use wireless headphones so as to not disturb the upstairs neighbour. So you could buy those to listen to the TV or music.
We have sold concrete floor construction and it works well as long as you have thick underlay and carpet. No laminate or wood floors.

Original poster

Biwurlu · 25/09/2019 09:08

@WarshipWarrior have you had lots of problems with share of freehold? This is 30 years old and communal areas are well kept and no paint on the outside. So I'm thinking things will be few and far between?

@MsPepperPotts thanks I'm thinking the same, heapogne to avoid annoying anyone.

The kitchen in the flat I'm looking at is wooden, but as it's on concrete I imagine they can't hear it below? Or could that be a problem?

Do you get surveys for a flat? Compared to a house it's very limited what they can actually do

OP posts:

SpringFan · 25/09/2019 09:30

For me, it would be the lease that would do it. You need to look at the Lease and who the management company are, there are some really grabby companies out there. ( leaseholders CAN change the company),
I would want a close look at how the management charges have changed over the last few years.. There are advantages to flat living, but at 30 years old, you might be looking at rewiring and water tanks, heating repairs.
I am a director of a development which is about 35 years old. Everytime someone updates a kitchen or a bathroom, you can almost guarantee that there will be issues with their boiler/tank etc and a flood! So a good building insurance policy is essential.
Oh and the fashion for laminate floors also causes problem, due to noise. ( Thats why it is forbidden in the Lease - and breathe)
If there isn't a management company, you need to find out how the other residents agree anything that needs doing eg building insurance, fire inspections, internal decoration.
Oh and find out how long the Lease is for- you might find it difficult to sell on, if there is not too long to go.

TurquoiseDress · 25/09/2019 09:36

My first instinct would be to say it sounds like madness to move from a detached house into a flat, even if it is share of the freehold.

But then it depends on location, where you need to get to for work etc
and obviously finances etc

Looking around here in SE London, it most definitely feels like it's a fallen market, judging by the reductions that we've seen all over the place

PhilCornwall1 · 25/09/2019 09:42

Just the thought of going from a detached house that we have now to a semi makes me shudder. To go from detached to a flat would fill me with dread.

Gfplux · 25/09/2019 11:01

I have lived in two leasehold flats in the U.K.
Both were long leases close to 99 years.
The first was a conversion in Barnet Herts with about 9 flats. There was a management company run and owned by the flat owners. This ran very well with just the downside that the majority of owners did not have spare money for (they would say) “luxury” types of maintenance and there was no sinking fund.
The second was purpose built with 12 flats with a very large garden in N20 North London. Once again the management company owned the block with each flat owner have one share in the company. This was a luxury block with many of the owners determined to protect their investment AND their quality of life. The block and grounds were well maintained and there was a large sinking fund ready for any large works so that the owners did not have any huge one off bills for things like a new roof etc.

AnchorDownDeepBreath · 25/09/2019 11:06

I wouldn't. We're going the other way at the minute and have been warned a lot that the flat will be harder to sell, they hold their value less, and even with our wooden floors and lovely communal areas, there is noise and communal costs. You'd also presumably have ground rent and service charges to pay in a flat; which you probably don't have in your house.

I'm a little biased because our flat is gorgeous and I'd have kept it in a heartbeat, but we're not because everyone has said a flat isn't as sound an investment as a house.

TurquoiseDress · 25/09/2019 14:34

Just adding- DH used to own a flat (in Yorkshire) and he had a bit of a nightmare at times with chasing the management company, paying lots in service charge each month and ground rent.

Also, dealing with noisy/inconsiderate neighbours etc

He then moved to London for work and let it out for a decade or so, but it was in negative equity- by the time he sold it a couple of years ago he'd barely broken even. Hence struggling to buy current and raising a deposit form nothing is tough as no equity from his previous place and we are no longer considered FTBs

We are wanting to buy in SE London and DH is very adamant we are not going to be buying a flat or maisonette because of his previous experiences...but there is not much out there we can afford!

I would say keep the detached house!

Even a couple of lovely 2 bed maisonettes that were for sale locally, he refused to consider, even the ones that were share of freehold etc

WarshipWarrior · 25/09/2019 14:55

Just to add to the previous OP. 99 years is not a long lease - it's fairly short actually. Once a lease gets near 85/80 years its basically impossible to sell except with a discount to account for the lease extension. OP share of freehold is a nightmare because if someone cant afford to pay into the pot or chip into a major repair I.e roof falls in and cant be claimed on insurance because its wear and tear and there is no management company then basically you're up shit creek. I just wouldn't bother!!
A luxury block where everyone takes pride in the appearance and up keep of the place and can afford any ad hoc payments might be fine - but people move on and future neighbours may not be like that.

Original poster

Biwurlu · 25/09/2019 15:36

The lease on this one is 971 years, so I think that might count as long ;)

The flats are all selling for 300k upwards in the block so people would be paying out for repairs right? Otherwise difficult to sell on and they would want to protect their investment

Surely share of freehold can't be that bad? Millions must live in flats in the UK?

A detached house isn't necessarily quiet if you have noisy neighbours that aren't far away and think a detached house allows you to be as loud as you like until 2 am at night and the neighbour the otherside starts playing around with motorbike engines come 7am.

The flat has a nice view of a river, houses for the same price have no views of anything other than other houses and roofs. Also the flat is near a train station. So it does have lots more going for it

OP posts:

OnlyFoolsnMothers · 25/09/2019 15:40

If you dont plan to be there "forever" whats the point in downgrading now

Expressedways · 25/09/2019 15:46

We went from a detached house to a flat when we moved abroad (actually still own the house and rent it out but I don’t think that matters). It was actually quite the revelation for us as we realised we loved living in a city centre and being walking distance to everything (the house was in the suburbs), having an open open layout (house was series of small rooms) and didn’t even miss the garden as we have a large park on our block. I won’t comment on the share of freehold as we’re not in the UK and things work a little differently here but we don’t regret the move at all!

zonkin · 25/09/2019 15:48

Location is the key. Once my kids have all flown the nest I would happily move to a top floor flat in the right location

Original poster

Biwurlu · 25/09/2019 16:25

Because I need to move locations, and get away from my annoying neighbours.

The location of the flat is perfect and very desirable

OP posts:

MountPheasant · 25/09/2019 16:29

We live in a share of freehold flat and we love it.

TurquoiseDress · 25/09/2019 16:34

@Biwurlu it sounds like there are lots of positives to this flat

Surely share of freehold can't be that bad? Millions must live in flats in the UK?

I think the vast majority of flats in the UK are leasehold with service charge/ground rent etc (prepared to be corrected by anyone who knows about this!)

Share of freehold does sound pretty good to (naive) me but DH is really anti. Also have seen very few flats that are SOF- the only ones I went to visit locally were maisonettes, so two sets of owners share the freehold

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