Buying RTB-ed Council flat for son at University

[whitepetals]

Hi,

My son will soon be going to university and we were thinking on buying a property and were suggested to look into council flats.

Did anyone here bought flat from the council or can give details on the matter?
Is it true they are cheaper than 'normal' flats?
(we would not be too fussy about the state of the flat as we would have a secure income from renting rooms of the flat to friends of my son.)

Thanks

[Matt Churchill]

I've a little knowledge (which they say is a bad thing!) on the subject. In my experience it is true that council flats are cheaper than non-council flats.

[whitepetals]

I've a little knowledge (which they say is a bad thing!) on the subject. In my experience it is true that council flats are cheaper than non-council flats.


Do you have an idea on where to find offers on these properties? Is there a board or should I check agencies?

[Poppy]

Ex-council properties are marketed in exactly the same way as any other property. Contact estate agents in your preferred area.

[MrShed]

I think the OP is thinking they can buy the property direct from the council. Just to clarify, you cannot(unless obviously you live in a council property). Something to bear in mind - it could be argued that ex council property is cheaper not because it is ex council per se, but because they are generally in a council or ex-council estate, and as such the area could be poor. These areas are also fairly unlikely to be typical "student areas". This is a very sweeping assumption however, but basically make sure you research the area thoroughly, especially as it will be in a town you will probably have no experience of.

[whitepetals]

Yes, I did think I could have bought one of these properties off the Council...oops...

Do you know any good website where I could find all properties on sale, including cheap ones?

Thanks so much for the help!

[MrShed]

rightmove.co.uk is decent....everyone will have their own preferred site! It also depends on whereabouts it is...where will you be looking?

[whitepetals]

rightmove.co.uk is decent....everyone will have their own preferred site! It also depends on whereabouts it is...where will you be looking?

London...unfortunately I was told it is extremely difficult to buy there. Also, I would like the flat to be in zone 1 or not far from there -fell in love with Lancaster Gate!-

[MrShed]

Good luck finding anything cheap in London!!! May well be worth looking at auction properties....probably the best way to get a bargain/below market value property at the moment.

[whitepetals]

Great Idea...but where can I find these listed?

[MrShed]

Auctions tend to be run by local companies. Up in the north east it is pattinsons, but doubt itll be the same down there. First port of call would be the Yellow Pages!

[whitepetals]

You gave me a great idea, thanks for that!

I just need to get lucky now!;-)

[lee2309]

Hi,

Lancaster Gate is very expensive and for just a 1 bedroom flat with a shorter lease (below 75 years)that measures between 400sq to 500sq ft you will be paying more than £250k which means stamp duty of 3%. At the moment there is a shortage of property in this area which has pushed up the price dramatically.

You can normally get a discounted flat from the council if you have been living there for a certain amount of time. The discount you get depends on the length of time you have been living there and paying rent to the council. I can assure you that there are lists of people who try to get council flats just to live in let alone buy in this area. It is certainly not easy.

I would try primelocation.com as lots of the west end agents advertise on this site.

The only problem with trying to find a property online is even although you might register with them to send you properties you are just a name on a list. My advice would be to dedicate a few days and arrange to see a few agents so they can take you around a few properties. Do this with a few agents and then you are fresh in their memories. It will also give you a good idea of what you want and certainly what you don't want.

Leanne
Majestic Finance

[whitepetals]

Hi,

Thanks for your reply.

Well a friend of mine who was in London for a week went to see some agencies for me but she came back very disappointed: agencies seem to push all prices up (a lot!).
For example, she saw a lovely but very small 1 bed flat for almost 50 thousand more than the figure you mentioned... and that's one of the reason why we were thinking of council flats: as I said it wouldn't be a problem to get it in not excellent conditions as, anyway, I would change bits and pieces along the way.

[tenant29]

Which town is your university ? If you are looking to rent out rooms to other students, a council flat is not the right type of property to buy. Living in poorer areas brings higher risks. Council flats owners may be hit by higher maintenance service charges. Buying property should be about choosing the best location.

[Tax Accountant]

Council properties in London are not nearly as bad as they may be in other cities.

I assume zone 1 means central London. If so, they will not be cheap.

How many bedrooms were you looking for and what sort of budget are you thinking about?

A typical 2 bed ex-local authority flat in central London may cost in the region of £275,000. This is just a guess based on similar properties costing around £175,000 in outer London areas.

Ramnik

[whitepetals]

the idea of a council flat was based on the fact that I assumed they were cheaper than others and can be improved.

Ideally would be a 2 bed flat but if the price difference is so high it may also be a 1 bedroom and living room could be turned into a bedroom as they guys wouldn't spend much time there anyway.
My son would share with 2 friends and his girlfriend and they would all pay their share of the rent and bills therefore money would be used to pay off the morgage.

[lee2309]

Hi,

I have sent you a private message with some info for you.

Lee

[tenant29]

W J Meade estate agents at Wood Green ( on Picadilly Line) are advertising a one bed flat ex-council ground floor flat at 140K ( in their window display ). The flat is located near to Seven Sisters Tube station

Is this area suitable ?

[whitepetals]

W J Meade estate agents at Wood Green ( on Picadilly Line) are advertising a one bed flat ex-council ground floor flat at 140K ( in their window display ). The flat is located near to Seven Sisters Tube station

Is this area suitable ?

Hi,

Thank you so much for your message but no, seven sisters is no good. My priority is to find a place in a safe area and was told not to take into consideration at all

Brixton and the like
seven sisters
king's cross and the like
mile end and the like

I know it's quite complicated but I don't want to buy in areas which are even more dangerous that others also because properties in these areas will loose value in a few years time -don't know if it's true but am trying to avoid anyway.

[Tax Accountant]

There is an EC directive to bring all local authority properties upto a certain standard by a certain date in the next few years. These improvements result in issue of Section 20 notices by the freeholder. You would then have to pay your share of these costs. The amounts could easily be between £10,000 and £25,000 depending on the nature of improvement work proposed. As the majority of these flats would still be in the ownership of the local authority, their share of the cost is funded from council tax and as such neither the local authority or their tenants are too bothered about how much the cost is. It is only the handful of the private leasehold owners who will be left facing the hit out of their own pockets.

Also consider the service charges which could again easily average in the region of £3,000 per year.

So be careful of what you are letting yourself in for before buying an ex-local authority flat.

I would seriously consider buying a normal freehold house where you will have a much wider choice in terms of areas where you want to buy. But you will need to look much further out of central London unless you have a budget in the £ million range.

Ramnik

[Poppy]

Brixton and the like
seven sisters
king's cross and the like
mile end and the like

I know it's quite complicated but I don't want to buy in areas which are even more dangerous that others also because properties in these areas will loose value in a few years time -don't know if it's true but am trying to avoid anyway.
I agree, you don't know enough.

You probably can't afford Brixton, Seven Sisters, King's Cross, Mile End and the like anyway. So you're right not to bother.

[tenant29]

Its the right decision - as one day ago, two teenagers were shot in Macdonalds restaurant in Brixton.