Can’t get mortgage on 12th floor flat, should I buy cash?

by Readers Question

7:35 AM, 19th August 2014
About 5 years ago

Can’t get mortgage on 12th floor flat, should I buy cash?

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Can’t get mortgage on 12th floor flat, should I buy cash?

Hi all

I have seen a flat for sale in South London, a few stops away from London Bridge, so excellent location.

It is advertised at £210,000 – Cash only. Can't get mortgage on 12th floor flat, should I buy cash?

This is an amazing price and based on the rent it would generate, a good solid rental yield.

Now my concern is that this flat is on the 12th floor of a 15 storey block. According to the agent, no lender would lend on a flat above the 5th floor, hence cash only. I have done some research and it seems the main reason why they won’t lend is due to it being harder to offload if they have to repossess. I can live with this, but is there any other reason?

I am in a position where I could get the cash together as this is a really good deal, but I would like to know if there are any problems in purchasing a flat so high up. (Must be a problem if a lender wont secure it?).

Also the block is managed by the council, as opposed to a management company. Any advantages/disadvantages here?

Interested to hear thoughts.

Thanks

Adam



Comments

Matthew Turner

14:17 PM, 25th August 2014
About 5 years ago

I would agree with joe bloggs, from my experience owning an directly managing two such flats in inner London. As you have no doubt recognised, these buildings are usually very well built, often much more stylish and definitely much more spacious accommodation than today's new London flats. In Central London they rent easily to good quality tenants (a professional from overseas doesn't recognise our snobberies of social housing, just a great flat in a good location). But, due to the mortgage lenders rules not being specific to London, ease of resale is the main issue, as has been said.

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