Are we mad buying this place?

[mitfordsisters]

Okay, I need a bit of perspective here! All views appreciated.

We've put in an offer on a flat over a shop (estate agent) - 3 bed, 2 baths, 1000 sq ft. Costs £220,000 and we have to have a short mortgage of 18 yrs due to DH's age, so repayments are nearly £1400 a month.

We live in London, won't move again for a good 10 years probably - but the size of the figures is scaring me. We currently net £3400 a month.

Should we be looking for something more modestly priced, or wait til next year, or just go for it?

I love the flat by the way.

I think it sounds a bargain - whereabouts in London are you? Flats above shops are cheaper but it wouldn't worry me that the commercial premises belong to an estate agency - loathsome individuals but generally quiet and don't produce lots of smells .

How affordable it is depends on what sort of mortgage you have - if you are paying that rate fixed for five years, say, then you should be fine. If you are on a very low rate which is likely to go up as soon as interest rates change, then I would be more worried.

I don't think you'll find much for less than that in London. You have £2000 left over every month for all bills etc. That's quite a lot (assuming you don't have debts etc).
Sounds good to me...

Cheers guys - I feel it is a good move - just having a pause over the cost. Property really shouldn't be this expensive should it? Then again, if we're not going to move again for ages I guess it's not the end of the world if prices do go down a bit.

Lol at estate agents and smells! It's in Forest Hill lalalonglegs.

Oooh, perfectly nice area. It is officially a bargain .

I think so too. Our house was more than that and we feel chuffed with what we got for our money (in London). If you want to stay in London, well, it is more expensive...

I personally wouldn't pay all that each month for a flat. But I don't live anywhere near London so I obviously don't have a clue!!

You can still negotiate if that is the asking price, don't forget.

That sounds alot for that size mortgage, I presume you have got some equity. Are you sure you have the best mortgage deal. Just that we are borrowing quite a bit more with similar repayments.

my BIL rents a flat for more than that - bargain!

Fiddledee - her mortgage is only 18 years long which means the repayment part of it goes up massively which is why her monthly figure might be steeper than yours.

Quite aware of that lallonglegs ours is only 20 years. Seems high for 18 years though.

OP - when the estate agents go bust (and some of them surely will, during this house price crash) you might get EVEN more loathsome neighbours (think fastfood takeaway!) Something to think about.

You can't get a takeaway without a planning application - they are classified as different commercial uses. Estate agencies are lumped together with accountancy firms, betting shops etc.

The resale thing is an issue for the banks - yes, we can't guarantee what type of business will be running downstairs - the kebab shop thing is a bit of a worry.

Fiddledee - the rate we are being offered is 4.99% - I think this is the best in the market for first time buyers with only 10% deposit, and not all lenders will consider flats over shops. Wish we did have a larger deposit as we'd get better rates but hey ho

Is it the one with the Tandoori takeaway underneath and next to it ??? If it is and you ARE going to go ahead you would be mad to only offer £5k off the asking price. Prices are falling and especially with regards to flats (which is what you are looking for). Why don't you wait a few months longer, save a bigger deposit, get a better rate, buy a reduced flat/masionette (without being on top of commercial premises!)

Thanks beautyspot - I am considering going back to negotiations.

Mitford - you really really need to think carefully about the fact you would be living on top of a Tandoori takeaway.

If you can live with drunken rabbles, smell, litter, unsociable behaviour (urinating in your doorway etc) then go ahead. I wouldn't touch this with a bargepole - even when I was a renter.

I agree with beautyspot and others.

I lived in rented flat above takeaway shop when i was young. It was awful. It will be shit to live in and more shit to re-sell it.

You might be able to find a nice 2 bed flat in a house or small block.

- I thought she was living above an estate agency.

Don't buy it imho.

lala - the Tandoori is next to the estate agent.

It is a staid suburb guys, not the Big Market!

Have you put Forest Hill crime stats into Google? Doesn't look very staid to me.

Higher than average number of crimes.

www.upmystreet.com/local/crime-in-forest-hill.html

www.se23.com/forum/showthread.php?tid=1078