Right to buy council flat – is it a good idea?
I am in the process of obtaining a mortgage for my current council flat. I have a large tenant discount so only need a mortgage of £64k. The council valued the property at £170k, but I had an estate agent value the property at £200k.
The agent also mentioned that with home improvement other flats in the blocks have sold for up to £260k. Also because it is a sort after area (good schools, close to transport links, Greater London) demand for private rental in my block is very high.
Rental income could be £1300 per month. My issue is as it is a high rise concrete block Lenders have been hard to come by and I’m worried that it will be difficult to sell for this reason in the future. Should I take the risk and buy?
I’d appreciate advice from those that have done this before or have any experience in this area.
I feel like this will be the first step into property development and the start of a portfolio.
All advice is welcome.
Many thanks!
V
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Large family moved in when father died?
Member Since July 2015 - Comments: 393
12:16 PM, 16th December 2019, About 6 years ago
Reply to the comment left by terry sullivan at 16/12/2019 – 11:58
That’s probably because all those that could afford did, did right to buy and were no longer council tenants. I think RTB is morally wrong.
Member Since December 2015 - Comments: 828
12:30 PM, 16th December 2019, About 6 years ago
Reply to the comment left by Kathy Evans at 16/12/2019 – 12:16i disagree–councils are hopeless
and has are a giant con–always have been
Member Since September 2014 - Comments: 166
3:54 PM, 16th December 2019, About 6 years ago
The legislation generally favours the tenant to ensure councils can’t be difficult, so I don’t think V should pay undue attention to unfavourable concerns about councils. They do need to understand *all* the risks of buying any property/flat apply – they’re accepting full responsibility like every buyer, particularly the risks of unplanned costs, eg unexpected repairs, unplanned service charges, large interest rate rises etc. If they don’t they’re homeless because they’ve given up their right to be rehomed by the council which is fair.
I was concerned at first that V seemed to be thinking about being able to both buy larger and keep the flat to let which would be an entirely different prospect. As we know, being a landlord is more effort and less profitable than lobby groups and politicians believe. Having read her thoughtful replies she sounds as if she’ll make sensible decisions when her family needs a larger home.
Member Since September 2020 - Comments: 1
7:30 PM, 30th September 2020, About 6 years ago
Dear V,
Hope you are well.
Will you be able to share if you end up buying flat or not?
I am in your similar situation and thinking to start your journey and will appreciate if you could share any advice.
I have been living in my flat for the past 13 years and thinking buying my council flat is the best way to get to the property ladder especially in London.
Thanks
S