Landlord has asked if dd( mid20s) wants to buy the flat she is renting- Clifton, Bristol

[thesandwich]

Hello, my dds landlord has asked if she wants to buy the flat she’s renting- he’s getting out of rental due to his age.
Id very much appreciate any words of wisdom/ pitfalls/ questions from folk who know the area/ market or have done the same. She loves the flat, can afford the mortgage, was looking to buy soon.
Thoughts welcome! Thank you.

Will it be leasehold or freehold? Will there be a management fee? How much is the flat (because Im nosey!) and how will they agree a price? Will he give her a discount as he won't be using an estate agent?

No. Absolutely not. I bought a flat in the building I rented and loved and I still own it 13 years later but haven’t lived there for 6 years. I can’t sell it, can’t make any money renting it so it’s a bit of a money pit.

I don’t advocate buying a flat to anyone (unless they want to buy mine?).

I thought flats in Clifton would be quite expensive for a 20-something year old. So what’s the catch with this one?

Depends on the price, noting there should be a discount for no estate agents fees. How much are service and maintenance charges etc? Could be a good opportunity but do some research first.

She needs to know what the service charges are, freehold/leasehold, all those details.

She needs to have a look at what houses she can get for her budget and go from there. Flats are good but can be harder to sell on

I would guess the landlord has asked her first because that way he can avoid paying estate agents' fees, and won't lose any rental income as he doesn't have to sell the flat with vacant possession if she goes straight from renting to ownership. Also no delays with property chains and so on.

It could be a good deal for her too (no moving costs, also no chain etc), but she would need to get an independent valuation to make sure that whatever price they might agree on is fair.

You'll find plenty of lists if you google what to watch out for if buying a flat, but the main ones are length of lease, management company, service charge, and whether the building has any issues (eg problematic cladding, elderly lifts, windows needing replacing) that might prove expensive.

The main question for her would be whether she would prefer to buy this flat than any other on the open market?

Is it leasehold? If so, how long left on the lease?

A flat in Clifton is often the size of a house. She might get a good deal, but I would certainly be going along to have a look as a parent to check out its general condition, location etc. Clifton isn’t generally an affordable area for a student to buy.

Sorry, I’ve just realised that she’s not a student.

Very sought after area, with easy resale and rental. Very difficult to park. Much of the area is original Georgian to mid Victorian building; this means it's frequently listed (or parts are listed). We had a quote in the early 2000's of over £20k to replace a heavily listed, massive, original skylight. Needed like for like, artisanal replacement... Large amounts of the house were similarly listed. Also makes surveys etc trickier, due to the building age and additions/changes over the centuries. If it's not in good condition, I'd be very wary but it's otherwise likely a very good investment.

Think about the lease and service charges. Services charges especially which can be raised by 3rd parties to ridiculous levels once your DD has bought you might find hard to resell have you checked sale values history on right move.

If she is serious about buying she should pay to have a proper building survey completed

Also an EPC

Does the roof need replacing ?

Leasehold or freehold fees

Who manages the common parts of the building?
Ask them about the annual charges, managers fee, plus service charges.
Do they have a reserve fund to cover emergency works and how much is in it.
Is the building well maintained, or can you see lots of repairs needed.
Is there a resident's committee that they deal with

Are there any proposed works coming up on the common parts ( like claddding, replacing windows, or carrying out refurbishment to listed standards)
Some of those works could be costly... and have to share out between all the leaseholders.
Managing agents also organise the insurance and should be able to tell you how much each lessee pays for buildings insurance.
Flats often make a lot of claims because of leaks from one flat to another.

I know Clifton really well having lived there in several flats over two decades.

It's one of the most expensive parts of Bristol. Loved by students and young professionals. Some areas are more expensive and desirable than others - it really comes down to which road in some cases. If you name the road I could give you more info.

If your DD ever wants to rent the flat out it will always be snapped up quickly.

Selling is a different matter. In the less desirable roads flats can hang around when selling, but most will sell reasonably quickly. Basement and top floor flats hang around, as do those in busy/noisy spots. The market there is pretty fast compared to other places.

Clifton is a great place to be young. Bars, shops, access to the centre of Bristol, lovely green space. People tend to move out when they have families or the busy/party/student vibe gets old.

Clifton is a place full of large houses mostly divided into flats.

Houses in Clifton are hard to come by and generally very expensive...as are flats with outdoor space.

If the price is right and she can get a mortgage why not? Lots of people buy flats in the real world, it's what they can afford.

Yes, she might get a good deal if her landlord wants to cut out the middle man and there is goodwill there. As always, buyer beware, however it is probably the most desirable area in Bristol. I’m a little surprised that it would be affordable for a single person in their mid twenties. Do you know anything about the location/condition etc, above a takeaway on Park Street is a very different proposition to a quiet part of Clifton Village near The Downs.

I’ve heard that many BTL landlords are selling up because of new energy efficiency regulations are coming in for rental properties. The cost of remedial work in period properties far outstrips their income/profit potential. I guess this means there will be plenty of options on the market and a buyer’s market.

Well flats in Clifton are bloody expensive (even those not particularly well maintained). It's one of the most desirable areas of the city, particularly amongst young professionals, and a Clifton address is something to "own". She wouldn't have removal costs or all the upheaval which is a a bonus. But obviously far more context about the flat is needed. I'm surpised at her age she can afford to buy anything in Clifton to be honest.

Thank you everyone for the very prompt and helpful responses! She’s lived in it for a while so is aware of its foibles- she would have a full survey, and the roof is a potential concern… leasehold, she’s checking how long.
any more thoughts v welcome!

What kind of age it? I’d get a very thorough survey - a lot of the properties there are very old and suffer terribly with damp / subsidence etc.

On top of the usual issues relating to flats eg leaseholds and service charges!

It's the right thing to do to ask her first. In the US state I lived in (that is considered pro-tenant), it actually the law. That said, as a flat owner in the UK, I agree with a PP that flats can be a trap unless it's really a great deal.

It’s interesting that energy was mentioned as potential reason for landlord selling, if the flat is a period property they are difficult to keep warm, expensive to maintain and prone to damp. Isn’t Clifton known more for rentals professional types, than actual owning properties. At 20 she should be considering future is it somewhere she can stay boyfriend kids in next 5-10 years or do people tend to buy houses out of the area. Just mean she should consider long term as well as her immediate needs.