techie

Registered with Property118.com
Monday 20th November 2017


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Total Number of Property118 Comments: 1

techie

15:47 PM, 2nd December 2019
About A year ago

Right to buy council flat - is it a good idea?

I bought my council flat from a London Borough council in 2009 under the right to buy scheme after living there for 9 years.
I faced the high rise concrete block issue when getting a mortgage but found Halifax was favourable and I was with them through the time I owned it. I also understand Satander and Nationwide which my neighbours had used would consider this as well. My first potential buyer had the same issue and the sale fell through but I eventually got an offer from a cash buyer so ended up not being an issue when selling
Back then in my borough (dont know if its changed) if you decide to sell, the council has first right of refusal. Also, if you sell in the 1st year you pay 4/5 of discount back, sell in the 2nd year - 3/5, 3rd year -2/5, 4th year- 1/5 and nothing in the 5th year.
I sold after 5 years which allowed me to buy somewhere bigger using the equity in the property.
Just remember you are responsible for all your repairs and are contractually bound to contributing to any major works and need to pay a Service Charge so you need to factor this in as it can be quite expensive. However, overall it was a very good decision to make the buildings are solid and it allowed me to get on the housing ladder with no deposit and because the council/HA tend to value lower than market you get instant equity.... Read More