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donmaico
29-01-2009, 10:21 AM
hello
looking for some advice here .As i recently inherited one small cottage i am hoping to let , i am now looking to make a further purchase but am uncertain about a number of points ie who to let through type of property etc/Basically i can afford to pay cash for a small two bedroomed house ,in a less salubrious location, or a two bedroomed flat in a better one.I do have a small house in mind which is fine but for the fact its situated in an estate which has a bit of a poor reputation, not council but near one.It would probably be let-able through the council ok, but its the re-salability which could prove a stumbling block .
The next option - a flat is a bit more complex. So far I have been advised to avoid large complexes because of exorbitant maintenance costs, and freehold converted house flats because of potential difficulties in maintenance and resale( apparently lenders are very reluctant to give mortgages for such properties).The only realistic option would appear to be a converted leasehold house flat.Most such properties round here incur maintenance costs in the region 1000 + pa which would be quite a dent in my takings.One option i came across was an arrangement whereby the freeholder who lives in the downstairs section,would come to an agreement with the leaseholder upstairs whenever any maintenance works have to carried out to the property.I am not at all sure about this, whether is satisfactory or not and was hoping for some advice on it.Seems to me there should be some kind of legal agreement over it to prevent abuse.
my third option would be to wait to see if the market drops further and ain for a terraced house in a more favoured location.
thanks

jeffrey
29-01-2009, 10:27 AM
There are thousands of threads on this part of LZ. Most deal with problems caused:
a. by bad L for good T; or
b. by bad T for good L.

Unless you read at least some of them, to gain a flavour of the pitfalls, you'll lose out.

You can minimise at least some risks- by buying/letting a whole (undivided) freehold house [not a flat] and ensuring that it's not an HMO.

donmaico
29-01-2009, 12:17 PM
There are thousands of threads on this part of LZ. Most deal with problems caused:
a. by bad L for good T; or
b. by bad T for good L.

Unless you read at least some of them, to gain a flavour of the pitfalls, you'll lose out.

You can minimise at least some risks- by buying/letting a whole (undivided) freehold house [not a flat] and ensuring that it's not an HMO.
Pardon me but what is an HMO?

SALL
29-01-2009, 12:22 PM
Pardon me but what is an HMO?

Houses in Multiple Occupation

donmaico
29-01-2009, 16:22 PM
Houses in Multiple Occupation

thank you:)

Mrs Jones
30-01-2009, 12:12 PM
I'm afraid your last post indicates the lack of necessary knowledge which Jeffrey is warning you about. Please take his advice and read many of the threads on here to give you some more insight into the problems involved.

Look at the ones for Letting Agents, Finance etc. too.

Good luck