Flat to buy in ex council on 7 th floor

[AdeleFrance]

Hi,
I made an offer for an ex council flat in central London,paid for the management pack but the bank refuse to loan because it is a concrete building ,7 th floor and 26 sq m. The estate agent told me that his broker could find me an high street bank to offer me a mortgage. I am a bit reluctant to buy it as it may be difficult to resale in future. Also I think my offer was far too high as I saw in land registery a flat in ground floor who was bought 40000 cheaper in same building for the same surface in Dec 2019.Also I discover there will be major work planned for around £ 10000. What do you think ? Move away or make a cheaper offer to compensate for difficulty to resale due to flat

Run away.

do not buy. it is too much bother. find another flat.

I wouldn't buy, too much to go wrong.

I bought my first (tiny) flat in London, big council estate in a slightly interesting area. Think it was 5th floor (so mortgage able) and it turned out to be a sound investment. I sold it ok.

Are you buying it to sell on in a few years or live for a while?

If it's the former, then I would not go for anything that is limited by options for resale personally. Mortgage companies tend to restrict their lending criteria in tough times so it may get harder to get a mortgage in the future.

If it's the latter then you will ultimately save rental income and it might well be worth it even if it takes a bit longer to sell.

Lockandtees anything above the 5th floor typically I think. Not entirely sure why - resale potential I guess.

Ground floors tend to be pricier in my experience as they tend to have access to gardens?

Most mortgage lenders don’t lend above a certain storey height.best not to get into it as it will be hard to re-sell.

Actually, ground floor is often a bit cheaper than 1st or 2nd floor in standard height blocks (not maisonettes) - it’s because people perceive ground floor flats as a greater security risk. Those which have access to some private space will be worth more, but most flats (not maisonettes) just have communal gardens.

@Lockandtees

Ground floor flats are always cheaper so you’re not really comparing like for like.

I’m really surprised you’ve been refused a loan based on that you have described. It sounds like a perfectly normal flat for London. Did the bank give you a specific reason why it was refused?

The flat has three things that can make it hard to get a mortgage on:

1. ex local authority
2. high rise
3. concrete construction

My wife used to own an ex-council flat in a block that was a mix of council and private. The service charges were extortionate (in the true sense of the word) especially for capital works such as replacement windows.

Not on 7th floor I'm afraid.

I had a lovely 3rd floor ex council flat a few years ago, no lift, and it was lovely, but I wouldn't buy higher than 3rd.

What queen said. Throw in ££££ works... I wouldn’t.

Does it have a ESW1 certificate? It might be difficult to get s mortgage without one.

Is the work to be done making it fire safe? Is there cladding? You need to know the answers to these questions.

Just avoid. Most blocks are 2,3 or 4 floors. Don't go for a flat inna building taller than this.

And yes, the maintenance charges (one off ones...not regular) can be huge. Owners end up subbing the council tenants who do t have to pay as maintenance is included in their rent....it can be a new roof or double glazing for the block or other charges. There was a programme about a block in London where owners each have a bill of over £100k for maintenance works. That's extreme, but one off bills if £10k are fairly common. And you have to pay with no alternative.

So, avoid tower blocks, avoid cladding and check out how many flats are in a block amd how charges of one-off works are shared out (can be just between block or between several blocks in a road)

Maisonettes are a good bet for lower maintenance charges. As there are no communal areas, there is less general maintenance charge (sometimes none) and as there are usually 2 or 4 in a building, they aren't so large for things like the roof or other issues which can need sorting. Other benefits include own front door and often private garden. Some are ex council but there are lots of private maisonettes too.

Many thanks to all of you who reply. The flat has a nice balcony .Same for the ground floor I was comparing too. The service charge is good value and the personal lease percentage for contribution is very low so that is why I was interested. But I may change my mind . It is for living there for at least 5 years. I would like to ask too : is there a selling market for studio flat who are

Yes, there is a market for very small studios in central London. They are still expensive and will be out of reach for many, and the max lots can afford.

Don't just think about the regular maintenance charge. There can be one-off charges too. Eg new roof. Lots of buildings will include for big projects in a 'sinking fund' which has money out aside for big projects, but some don't and then you have to pay up for sometimes v expensive projects.

Buying a flat is usually necessary because people can't afford a house. But many later say the costs of ground rent, service charges and one off maintenance fees can be very expensive. It is important to check the ground rent and if it is stable or increases over time (mortgage companies won't lend if it's over 0.1% of value or above £500 per year or will reach over £500 per year at the moment)

5 years is a reasonable time to buy for. LOndon flats have fallen in demand with home working, so now might be a good time to get a good price, or prices might fall further. Buying for less than 5 years gives more risk of negative equity - ie value falls and your mortgage is more than property value.

Again, I'd advise looking at maisonettes, but these are rarely studios but often 2 beds, although sometimes 1 beds, so might not be affordable to you.

Can anybody in this conversation could give me an opinion on Henry Wise estate in Pimlico London about this 8 storey block? Is it worth it buying studio

For Meltdownsurprise, and queen Stromal,many thanks ,did you buy your place with a mortgage? Is it a studio

Some lenders are less keen on places below 30 sq m.

For Meltdown surprise,
Thank you so much for your feedback.
If you know some happy resident in Henry Wise could you ask them if they know somebody who had bought a studio there and ask them if they had problem with to mortgage it . Would love to have a feedback from somebody there who experienced the buying process. Many thanks if you can.

I wouldn't buy it...friend has an 11 th floor flat...bought cheap with rtb etc years ago...just go bill for 10k for lift replacements...always something to pay out...every 5 years a big renovation so budget for that also....plus he had new windows fitted but didnt want them...council work was poor quality...he still had to pay !

Best to avoid.
Lots of people have mentioned the frequent pitfalls with high rises over a certain height and also very small studios.

You will find some people who have managed fine and got mortgages on these, possibly many years ago.

However, going for something of a lower level and slightly larger (further out if that’s what’s needed to make it affordable) would be a better bet for now and the future, as you aren’t likely to want to live forever in a studio less than 30m so selling it on is really important. You really should take note of all the many warnings people have given, rather than trying to find the odd person it might have worked out for.

Best of luck in finding a home.

I would walk away. My friend got the right to buy her council flat on the ground floor of a block. No one would mortgage it and she was scammed by a so called broker who told her otherwise.

If you cant get a mortgage easily, how will you sell it on?