Should I prioritise a 2 bed in worse area to a 1 bed in a better area?

[paige8039]

The choice is a 1 bed ground, floor flat 10 minutes walking distance to streatham hill (better area), zone 3, 50 square meters, £200 ground rent, £2200 service charge including sinking fund, parking space, 87 year lease or a 2 bed 2nd top floor flat (no lift) in dagenham (worse area) zone 5, 15 minutes walk to dagenham east tube station, 70 square meters, £10 ground rent, £1500 service charge, 120 year lease, both £215,000. Which would you choose?

Update: I would rent out living room in streatham for £800 a month or both bedrooms for £1400 in dagenham and live in living room.

You’ve posted this twice - better ask MN to delete one

The 87 year lease is concerning, first of all. Do you need a mortgage?

I forgot to add the renting our spare room option, I'd prefer to delete the other question but it won't allow me.

Depends on how bad an area it is. Are you stepping over drug addicts or hiding from ferals waving machetes or just no upmarket delis and bakerys?

The high charges and very low lease are both concerning. How often/by how much can the charges be increased and how easy is it to extend the lease?

Both the leases are very low, I’d look into the costs for extending, you’ll struggle to sell either in the future.

You have posted such “dilemmas” before! Don’t assume you can sublet a room, especially if it means over-occupying a flat. The head lease may have rules against this.

Do you realise that if you rent out 2 rooms you most probably hav3 to have income tax on the rent you receive but won’t if you only rent out one room under the rent a room scheme depending on how much you charge.

Check you are able to rent out first then go with wherever you would be happier

So the Streatham flat would mean no living room for you (or your renter)? Not sure if you would get £800 a month for that, unless that includes all bills. There's a lot of rental properties in Streatham.

I cant see someone renting for 800 and no living room. Either option is illegal. You need a room and soical space kitchen access at all time. I assume you have to go through the living room to get to the kitchen. If you need a mortage you have to prove you can pay back without rental income. And house insurance will be an issue in a overcrowded building

I'd probably keep looking.

I'd keep looking too. I defintely would never buy a flat with 87 years left on the lease and the Dagenham one just sounds a bit dire, but also has a short lease.

These both sound too risky- is it cheaper just to get a room in a house share if you are sharing anyway?

The 87 year lease is a non starter.

120 year lease is slightly better but not a lot.

Keep looking.

I’d go for the one bed - sounds like life on the whole will be more easier and more enjoyable

I know both areas and I would go for streatham hill if i was going to live there myself - it sounds like you are buying a rental property and will not live there?? If so maybe go for the 2 bed, though rents are obvs much lower in dagenham

Edit - ive seen you are renting all besrooms and will live in the lounge - that's madness imo

Streatham one may be tricky to sell without extending the lease in the future (or better still, at point of purchase.) Ground rent would also reduced to a peppercorn when extended.

I wouldn't view the Dagenham one as having an onerously short lease.

Both leases are very likely to have restrictions against subletting rooms out though.

Leaseholds are a bit of a minefield nowadays - so don't try to save money with the conveyancing would be my advice, wherever you end up buying!

Renting out the living room as an additional bedroom is pretty shady landlord tactics. It creates a rather nasty renting dynamic as you have no shared social/ bonding space and it is isolating for the renter as it is difficult for them to entertain anyone at home as it has to be in their bedroom. It is hard to navigate cleaning rotas and shared facilities if you aren't spending that time together to build a functioning living relationship and I'd worry it would lead to an unhappy houseshare. I certainly wouldn't pay £800/ month for somewhere like that- I might consider it around the £500 price point. Are you sure you'd have a market for it? I'd go further out with a living room every time.

You want to charge someone £800 a month to live in their bedroom? Wow......

Both options sound terrible. What if you ever have children? Charging £800 for someone to live in 1 room is unbelievable!

Longer lease for sure but no lease even better

Please please do NOT go for the 87 year lease unless it's extended before you buy. You could end up with a costly lease extension o r worst case scenario a worthless property you can't sell. I absolutely hate the leasehold system, it should be abolished. I've been in my flat for 20 years hopefully going to move to a freehold house next year.

Dear God are you still posting about this….

Both sound shit options and even shitter for a renter if you can't afford the home without renting a room out lol for one you can afford .

I don’t know the areas so can’t comment from that point of view, but longer lease and two bedrooms (only rent one) from a comfort and future sale point of view. Mortgage companies tend to not like leases below 85 years and insist on them being extended so check out the costs to do that as well