Topic: The 'Eeeek...buying/saving for a house' thread

[owens_2k]

I'm paying around £400 a month at the moment which includes all bills/food etc. Any mortgage calculator ive had a go at is spitting the mortgage repayment alone out at £900+ a month. Then I would have food and bills on top of that.

[muyuu]

If you're paying rent that is more than your interest payments would be on a mortgage, I'd say it's better.

Depends on the risk you are taking and how much do you value it.

The rise in property value over a few years should even out the slimeball fees if it's in a good area.

Cannot be assumed over the timespan of a mortgage.

[The G in Gerrard]

Anyone had experience of buying a flat under leasehold? Relative of mine has seen a decent flat under a 999 year lease. What's the pro's and cons?

[Millie]

Anyone had experience of buying a flat under leasehold? Relative of mine has seen a decent flat under a 999 year lease. What's the pro's and cons?

Just bought one on a 999 year lease - pros - unlike a 99/125 year lease dont have to worry about the lease running out and have to pay a lot of money to extend the lease.

Cons to any any lease is what is in the actual lease i.e. the do's and don'ts - the lease I have did not have any clauses that unduly worried me at all

[The G in Gerrard]

Just bought one on a 999 year lease - pros - unlike a 99/125 year lease dont have to worry about the lease running out and have to pay a lot of money to extend the lease.

Cons to any any lease is what is in the actual lease i.e. the do's and don'ts - the lease I have did not have any clauses that unduly worried me at all

Thanks.

Seen flat yesterday with him. It is nice. Don't know much about the area.

With such a long lease does it affect the sell on value a few years down the line?

[Millie]

Thanks.

Seen flat yesterday with him. It is nice. Don't know much about the area.

With such a long lease does it affect the sell on value a few years down the line?

The longer the lease the better - with a 999 year one - unless you are planning on living for ever - then you don't need to worry.

With a short lease e.g. 99 years - when there is less than 70 years (or 80 in some cases) left on it - mortgage companies are reluctant to lend on them.  With a 999 year lease you are not going to have that worry.  Also value decreases, the shorter the lease.

[The G in Gerrard]

The longer the lease the better - with a 999 year one - unless you are planning on living for ever - then you don't need to worry.

With a short lease e.g. 99 years - when there is less than 70 years (or 80 in some cases) left on it - mortgage companies are reluctant to lend on them.  With a 999 year lease you are not going to have that worry.  Also value decreases, the shorter the lease.

Cheers fella. The possibility of a mortgage under a leasehold doesn't change does it?

[Millie]

Cheers fella. The possibility of a mortgage under a leasehold doesn't change does it?

Should be fine - its usually the condition and value of the property they are interested in - and your ability to pay of course

[The G in Gerrard]

Should be fine - its usually the condition and value of the property they are interested in - and your ability to pay of course

Ah ok it's a new build so he should be ok in that respect.

Cheers for the help.

[CaseRed]

Ah ok it's a new build so he should be ok in that respect.

Cheers for the help.

With a new build make sure you enquire about management fees and standing/service charge as these will be on top of the mortgage as well and can be a kicker!

[CaseRed]

Management companies are crooks to a man. My wife had a flat as share of freehold before we met and the management company for the rest of the development tried charging her fees.

Justification was for property insurance and upkeep of the building, all of which she was responsible for as a shared freeholder anyway.

Told them to do one!

[Millie]

With a new build make sure you enquire about management fees and standing/service charge as these will be on top of the mortgage as well and can be a kicker!

Good point - I forgot about that.  In my case the service charge is pretty low.

[The G in Gerrard]

With a new build make sure you enquire about management fees and standing/service charge as these will be on top of the mortgage as well and can be a kicker!

Cheers. That's been factored in also.

[gazzam1963]

One thing I've come across but not personally in a certain block of apartments in Liverpool is the sinking fund , purchasers there when they have to sell have to pay 0.5% of the purchase price timed by every year they've been there , a lady I worked for the other day has a potential £23000 fee payable to this fund . Apparently it's for the use of the roads , parking , lifts etc ...the longer your there the more youve used them

[BarryCrocker]

One thing I've come across but not personally in a certain block of apartments in Liverpool is the sinking fund , purchasers there when they have to sell have to pay 0.5% of the purchase price timed by every year they've been there , a lady I worked for the other day has a potential £23000 fee payable to this fund . Apparently it's for the use of the roads , parking , lifts etc ...the longer your there the more youve used them

In Oz we pay body corporate fees quarterly. Its split between Admin (cleaning, gardens, common area electricity, garbage collection) and a Sinking Fund. This is used to build a bucket of funds that can be used for new guttering, carpet in stairwells, etc. I'd be hesitant to buy in a block that has a very low Sinking Fund as there is a chance that a major emergency would require a special levy. I know of a building that had a decent Sinking Fund but then got hit with concrete cancer. All of the owners had to dig deep to contribute to the repairs on a pro-rata basis.

[gazzam1963]

In Oz we pay body corporate fees quarterly. Its split between Admin (cleaning, gardens, common area electricity, garbage collection) and a Sinking Fund. This is used to build a bucket of funds that can be used for new guttering, carpet in stairwells, etc. I'd be hesitant to buy in a block that has a very low Sinking Fund as there is a chance that a major emergency would require a special levy. I know of a building that had a decent Sinking Fund but then got hit with concrete cancer. All of the owners had to dig deep to contribute to the repairs on a pro-rata basis.

Can see the point but maybe a better system where its a higher percentage on your capital gain rather than a flat rate times by number of years ....you could have bought one of these flats a few years ago and sold six years later at a loss and then had a 3% sinking fund charge on top too .

[Sir Afghan]

Anyone ever bought a house that's currently rented out (HMO registered) but with a view to moving into it? I had a mortgage in principle but the lender is now telling me they can't lend against a house that's HMO and my mortgage advisor is saying I'll struggle to get a decent mortgage at all. From my perspective it's a normal terrace house that i intend to live in, the tenants will be gone by the time we complete / exchange. Anyone had anything similar or know what my best option is now?

[CraigDS]

New builds...what are people's opinions/experiences?

I've never been a fan, and ideally would love an older period property, but in the area I want these are out of my budget by a fair way.

This leaves me with the option of some older (70/80s) properties, or new builds, and the latter are looking more and more tempting for what I can get for the money, plus come with a 10 year guarantee.

[killer-heels]

New builds...what are people's opinions/experiences?

I've never been a fan, and ideally would love an older period property, but in the area I want these are out of my budget by a fair way.

This leaves me with the option of some older (70/80s) properties, or new builds, and the latter are looking more and more tempting for what I can get for the money, plus come with a 10 year guarantee.

I havent bought a new build but i know plenty who have. There is more and more getting lumped into the optional extras so be warned a houses cost on a brochure may rise as you put in better quality stuff for the kitchen etc. Its not USA levels yet where you have to pay for the lights though.

Make sure the builder is reputable and if possible check out some completed houses. Most people i know have had to make a complaint regarding things being left broken, such as tiles.

New builds are also generally priced right at the upper end of the market. If its a house for a very long time then i guess its not that bad but you do tend to pay a premium for what you get and if you need to sell the house in a few years then in a lot of cases you will struggle to make your money back.

Also you may find living in one a bit odd. Sometimes the walls feel like paper especially if you lived in a house pre-1940s/50s.

[CraigDS]

I havent bought a new build but i know plenty who have. There is more and more getting lumped into the optional extras so be warned a houses cost on a brochure may rise as you put in better quality stuff for the kitchen etc. Its not USA levels yet where you have to pay for the lights though.

Make sure the builder is reputable and if possible check out some completed houses. Most people i know have had to make a complaint regarding things being left broken, such as tiles.

New builds are also generally priced right at the upper end of the market. If its a house for a very long time then i guess its not that bad but you do tend to pay a premium for what you get and if you need to sell the house in a few years then in a lot of cases you will struggle to make your money back.

Also you may find living in one a bit odd. Sometimes the walls feel like paper especially if you lived in a house pre-1940s/50s.

Cheers Killer!

Yeah someone else had mentioned to make sure whats included and what are extras. I've not had a chance to go and look/speak to the ones I've seen online yet, but so far it looks like a lot is included from the off but will make sure to get all those details when I go and see them later this week.

It's a fairly local, reputable company, and isn't a huge builder like Redrow and the like. From looking online they've got a good reputation for high quality, but then I'm a fussy fucker and wouldn't keep my mouth shut even if it was something small that was left wrong 

The difference with living in a newer house is gonna be a bit of a change, although had an apartment for years which was a new build and that was like that with thin walls, etc. I'd much prefer something older, and that's one of the reasons why, but would mean looking a fair way outside the area I'd rather be in so will put up with it for a little while then see where I am in 3 or 4 years.

[CraigDS]

Are you looking in and around the North West Craig?

Yeah

[CraigDS]

Small sample size, but my god daughter has recently bought a new (Redrow) build in Nantwich. They pretty much gave her all the electrics, fixtures and fittings she wanted. From memory, she got all the kitchen electricals, TV in the lounge, an Xbox, loads of gear for the garden and she got to choose a load of bedroom gear from something like Habitat. Was easily 5k worth of kit.

So I think it depends on the development and how early you're buying. She bought first phase and obviously they want to incentivise buyers in the early stages so the estate looks popular. As well as all the high end kit, she got a discount on the purchase price and I think they paid a stamp duty contribution.

You're seem to get far more leeway in our part of the world where the demand is that much lower than it is in the south.

Cheers for the info 

Fired off an email to them earlier to get some more info on what is definitely included and what prices their 'extras' are, so will see what that comes back with.

I'd originally dismissed looking at new builds so I'm not one of the first ones in, but looking at whats still available the larger ones (which is what I'm looking at) are mostly still available so may be able to do something there. It's not a massive development (think about 20 detached houses, then another 2 mixed between semi-detached/mews houses and some apartments), so not sure how many incentives they'll be throwing about but will push for some if I do decide to look at buying one.

[killer-heels]

Cheers Killer!

Yeah someone else had mentioned to make sure whats included and what are extras. I've not had a chance to go and look/speak to the ones I've seen online yet, but so far it looks like a lot is included from the off but will make sure to get all those details when I go and see them later this week.

It's a fairly local, reputable company, and isn't a huge builder like Redrow and the like. From looking online they've got a good reputation for high quality, but then I'm a fussy fucker and wouldn't keep my mouth shut even if it was something small that was left wrong 

The difference with living in a newer house is gonna be a bit of a change, although had an apartment for years which was a new build and that was like that with thin walls, etc. I'd much prefer something older, and that's one of the reasons why, but would mean looking a fair way outside the area I'd rather be in so will put up with it for a little while then see where I am in 3 or 4 years.

I would have a look at any new builds in the past 5-10 years near that area and see what they were bought and sold for. Only concern would be the price stagnation with new builds.

[CraigDS]

I'm at the other end of the spectrum to you Craig, the house we've put an offer in on was built in 1596

That's what I've just moved from, or close anyway, as was a conversion of a 1700's barn, but then I went to that about 4.5 years ago from a new apartment build in the centre of Manchester so fairly used to them both.

[CraigDS]

I would have a look at any new builds in the past 5-10 years near that area and see what they were bought and sold for. Only concern would be the price stagnation with new builds.

Yeah it's something I'll keep an eye on. The prices seem fairly consistent with non-new builds in the area which are comparable in size, if not a little cheaper, and way below smaller period properties in the area.

Will check out some of the recent new builds going back 5 years though and see what movement they've seen on prices for ones which have been sold on.

[CraigDS]

Just need to find a lender now for someone who is self employed. Got a good chunk for the deposit though (about 35%) so that will hopefully go in my favour.

[CraigDS]

Very uncool choice, but we've gone with NatWest. Slightly higher interest rate than our best quote, but they had everything sorted inside a week meaning we didn't have to worry about anyone else coming in and stealing the property from under our noses. They were brilliant to be fair. Our advisor said they do a lot of mortgages with self employed people; just have to provide three years' proof of income.

Might not be a bad idea actually, as banked with them personally for the last 17 or so years. My sister and her fella have just got a mortgage through them too as he's self employed, will have to tap them up for some more info.

[.adam]

Exchanged today.

Feel absolutely exhausted by the whole process. So glad it's over.

Now to the 6 months of hell renovating it...

Nice one, mate. Congrats.

[cornishscouser92]

When I was in Liverpool recently I had a look at house prices up your way. Genuinely surprised how much cheaper they seemed to be in general

[Peabee]

Exchanged today.

Feel absolutely exhausted by the whole process. So glad it's over.

Now to the 6 months of hell renovating it...

Congrats! 

We're holding off until we move back up north.

[Roady]

When I was in Liverpool recently I had a look at house prices up your way. Genuinely surprised how much cheaper they seemed to be in general

Suppose it depends where about you have been looking! There's bargains to be had that's for sure. However in the area I currently live in (and I'll be moving soon as I only own half the house) you'd be lucky to get something like a two bed flat that isn't a shot hole for 160k , a three bed small terraced for 175k and a three bed semi is upwards of 280k. Yes there's cheaper options obviously. But a lot like anywhere in the country it depends on location .im by far not in the most expensive area either. When I move and take my cut I'll be lucky to get a two bed flat/apartment and even then I'll probably need a smallish mortgage to make sure it's a nice one.cheaper than other parts of the country but not what I'd call cheap at all. The prices of property are frankly ridiculous.

[cornishscouser92]

Suppose it depends where about you have been looking! There's bargains to be had that's for sure. However in the area I currently live in (and I'll be moving soon as I only own half the house) you'd be lucky to get something like a two bed flat that isn't a shot hole for 160k , a three bed small terraced for 175k and a three bed semi is upwards of 280k. Yes there's cheaper options obviously. But a lot like anywhere in the country it depends on location .im by far not in the most expensive area either. When I move and take my cut I'll be lucky to get a two bed flat/apartment and even then I'll probably need a smallish mortgage to make sure it's a nice one.cheaper than other parts of the country but not what I'd call cheap at all. The prices of property are frankly ridiculous.

You'll like this for a ridiculous price. Not far from me.

It's hard to buy anything decent here for an acceptable price.

[Chakan]

Has anyone been involved in a complete buy out of the townhouse complex they live in?

[CraigDS]

Has anyone been involved in a complete buy out of the townhouse complex they live in?

The freehold?

[Chakan]

The freehold?

I don't know what that means ...

I live in a complex of townhouses , I own mine, there are about 75ish units, apparently someone wants to buy the entire property.

[Roady]

You'll like this for a ridiculous price. Not far from me.

It's hard to buy anything decent here for an acceptable price.

That's a lot alright 😂 My uncle lives near pastow .. St merryn??? Bought his about 8 years ago for about that price but was a three bed with a boss garden and games room with swimming pool.

[Chakan]

In the UK if you own the land which a building lies, you are a freeholder. If you lease the land on which your property lies you are a leaseholder. You might pay something like £100 a year for what is known as ground rent if you are in a house.

It gets more complex when you are in an apartment block as the freeholder is generally responsible for the upkeep of the property too. In those instances you pay a maintenance fee too which might for example keep the gardens and gym up to scratch.

We pay a HOA fee every month for maintenance of the property around the house (bushes and trees and whatnot) mainly everything to do with the house itself (roof/doors/windows) we have to maintain. It seems a big company/investment wants to buy every unit there and knock it all down to build a mall with some apartments on top of it.

[Chakan]

This happens here fairly frequently. Just pick a price you want for your place, add 50% to it, then work backwards until they say yes.

Sounds like a good plan to me! Cheers.

[Peabee]

We've had to leave London to buy anything remotely decent, despite both of us earning good money.

Having said that, I think we're both relieved to get out, to be honest. Better air, can get out on the bikes without the fear of dying within 20 metres of the house and we don't have to fight for an hour in traffic to head back up north to see the folks.

This is just the first stage in us getting back to the north west

We'll be relieved to get out too. 

I know Sadiq Khan has the best intentions, but the new Housing Bill etc will make it difficult for him to do anything worthwhile about the housing situation.  It's going to take either a price crash or an exodus from London to bring any sanity back.  There's a whole block in Tooting that's been empty since we moved here in 2013...  How do you deal with that in the 'free' market? 

Give me a shout when you do end up back in the NW.  We could take a bike trip to Buckley. 

[muyuu]

We'll be relieved to get out too. 

I know Sadiq Khan has the best intentions, but the new Housing Bill etc will make it difficult for him to do anything worthwhile about the housing situation.  It's going to take either a price crash or an exodus from London to bring any sanity back.  There's a whole block in Tooting that's been empty since we moved here in 2013...  How do you deal with that in the 'free' market? 

Give me a shout when you do end up back in the NW.  We could take a bike trip to Buckley. 

If Brexit happens the "blame" will lie there.