This is because leaseholders in a block of council flats may have little say over improvements and repairs the council plans to make and could potentially be saddled with bills for tens of thousands of pounds. Some lenders won’t lend to people older than a certain age. another house). Even if the flat itself isn’t built to a particularly impressive standard, certain areas, such as London, are seen as ‘enough’ to pass a lender’s criteria. Pete's presence in the industry as the 'go-to' for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. By using the website you agree with our use of cookies. Concrete and prefab aside, there are some styles of building which are particularly prevalent among council-built flats. Buying ex-local authority houses or council homes might offer good value, but have you considered the implications for your mortgage application? Desirable (London) location, ex council wedged in between fab mansions, good nearby schools. balance transfer cards, Compare dual Yet a stigma remains with buying ex-local authority homes, for mortgage … You don't have to tell them you're going to let it out. They were well designed by enthusiastic architects with … Many local authority flats were built in the ‘60s and ‘70s out of concrete. For example, they might have a maximum LTV of 90% on houses, but only 85% on ex-local authority houses; a maximum LTV of 80% on flats, but 75% on ex-local authority flats. All the advisors we work with are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. Your choice of lenders will likely be thin on the ground as both ex-council properties and high rise buildings are considered specialist areas. So, if you’ve decided this is something you want to pursue, it is worth considering the following…. – We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating. Online Mortgage Advisor, Bezant House, Bradgate Park View, Chellaston, Derby, United Kingdom, DE73 5UH, Think carefully before securing other debts against your home. For example: A mortgage of £115,559 payable over 24 years, initially on a fixed rate for 5 years at 6.99% (and then on a tracker rate for the remaining 19 years at 1.8% above the Together Homeowner Managed Rate (THMR)) would require 60 instalments of £846.05 followed by 231 monthly payments of £824.52 plus a redemption administration fee of £110.00. Often, after separation, you will find yourself in one of two situations: 1. Ex-council houses or ex-local authority properties have got a bit of a bad reputation among would be homebuyers, but in the end it all comes down to personal preference. Ideally, you derive all of your income from PAYE. They will offer any advice specific to you and your needs. Some will, but want proof that you’ll be able to make your payments after retirement. Mortgages for Ex-Council / Former Local Authority Flats and Houses. Equity released from your home will also be secured against it. Buying ex-local authority property is different from Right to Buy because you’re looking to purchase a home that’s already been bought from the local authority – probably because a previous owner exercised their own right to buy to become a homeowner. You can read more about later-life lending in our mortgages for pensions guide here. The area that the home is in might also put lenders off, particularly if it’s surrounded by a high density of rented council properties rather than owner-occupied homes. It’s important that the ex-local authority property is located in a good estate and/or in a council with a good track record for looking after them. insurance, Get the right home For example, a council home in London could be worth £500,000 on an open market valuation. Halifax says it will look at each flat on its own merits. As long as you keep up the repayments, they really don't care. But one big issue with these can be getting a mortgage, as some lenders avoid high-rise schemes or developments with low owner-occupancy. *Based on our research, the content contained in this article is accurate as of most recent time of writing. It’s a good idea to ask the estate agent if the construction of any ex-local authority homes you view is unusual, as that’ll help avoid nasty surprises when the survey’s done. Think carefully before securing other debts against your home. Can you get a mortgage on an ex-council flat? What affects if I can get a mortgage on an ex-authority property? As far as the lender is concerned – the larger your deposit, the better. Right to Buy is an affordable housing scheme open exclusively to council property tenants (and some housing association tenants). Your conveyancer should check plans for impending major works, but you might want to make your own enquiries before making an offer to save you the cost and heartache of an unsuccessful mortgage application. Then sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. transfer cards, Find your vehicle's With the advisors we work with on your side, though, finding a favourable deal form a lender that understands the nuances of these areas is possible. Mortgages for Properties With a Flat Roof. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE, PLEASE NOTE: THE FCA DOES NOT REGULATE MOST BUY TO LET MORTGAGES. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. started, Get An ex-local authority flat or former council house can be a financially attractive prospect to homebuyers and buy-to-let investors alike. By making an enquiry you accept that your information will be passed to one of the specialists. © 2021 Online Mortgage Advisor. Lenders often label ex-authority as ‘non-standard’, and due to the uncertainty, lenders tend to rely more heavily on the surveyor’s comments about the value and later ‘saleability’ of the property. Your lender’s decision may be affected by any major works planned for the block of flats. If you’re looking for mortgage providers who specialise in ex-council high rise flats, make an enquiry and the whole-of-market advisors we work with will introduce you to the right lender. Mortgages and Furlough: Read expert advice on how to get a mortgage after being on furlough. Can you get a mortgage on an ex-council flat? It’s possible, but – like all buy to let mortgages, you’ll need a larger deposit and evidence that your projected rent will be able to cover at least 125-130% of your mortgage payments. Many will specify that the kitchen must be separate from the main living area – which can make ex-council studio flats a tough sell. liability insurance quotes, Ex-local authority mortgage comparisons are provided by MortgageGym[1]. insurance, Unoccupied property Alternatively – the friendly advisors we work with can give you some expert guidance. Gocompare.com holds a controlling investment in MortgageGym Limited. Local authority tenants looking to get a Right to Buy mortgage may well face similar obstacles when it comes to finding a lender. There is still some stigma around ex-authority, both amongst lenders and buyers; even though many are situated in excellent locations and are built under ‘Parker Morris’ standards to be both secure and spacious. started, Get Online Mortgage Advisor is a trading name of FIND A MORTGAGE ONLINE LTD, registered in England under number 8662127. Extensive surveys will be needed and a thorough audit of your finances will all be necessary but then on top of that, you'll have the annoyance of offset price reductions, if you have been a council … Save on your car There’s an enormous amount of variety in ex-local authority housing. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. The below factors affect the provider’s perceived risk of lending to  you. Gocompare.com Ltd. All Rights Reserved. fuel energy plans, Compare fibre High-rise flats - for example, ex-council flats in tower blocks, especially if they have problems with lift maintenance or where most of the other flats are still in the hands of the local authority. You can find out how to apply for an occupation order. Some lenders won’t lend on flats within blocks over a certain number of stories, even if the flat in question is on a lower floor. optic broaband deals, Compare public With their help, you will have access to all of the best mortgages you qualify for – make an enquiry to get the right advice on your application today. If you’re self-employed, or make a sizeable part of your living from things like bonuses or overtime, some lenders may be put off. A post-war housing crisis meant concrete and pre-fabricated houses and flats were built in great numbers by councils in the 1950s and '60s, and they've since been sold off into private ownership. Can I get a buy to let mortgage on an ex-council flat? Many lenders are unwilling to lend on homes of concrete construction, particularly when certain types of concrete have been used. This can be quite common in ageing ex-council properties, which often require more maintenance. An ex-local authority flat or former council house can be a financially attractive prospect to homebuyers and buy-to-let investors alike. Some lenders won’t consider flats below a certain size, or flats in which the entrance is from a balcony walkway. A multi-unit block (or multiple unit block) is a building that has a single freehold, … If you have questions about buying an ex-council property and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry here. Flat with balcony deck access – we have a range of lenders that will lend on this type of property. Some lenders avoid local authority flats completely, whereas others are open to the idea, providing a number of other very specific criteria are met. prices, Tenants' contents Mortgage options for ex-local authority flats with balcony deck access. People in areas with high house prices, such as London, may struggle to afford to pay for a mortgage even with the discount. Lender reticence is often down to the perceived resale value of a property, so they may exclude certain types of homes on this basis. Buying an Ex Council House. Lots of lenders are discouraged by high rises (typically defined as 7 stories and over). Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. ... Hello,we own (through mortgage) a freehold ex-council semi-detached. Get in touch – the expert advisors we work with can help you. You may check this on the Financial Services Register by visiting the FCA website. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. Again, some mortgage providers may relax this rule for more populous metropolitan areas (which is often where you find high rise flats). Sell the house before the bank does. That said, putting down more than the minimum might help convince the lender to offer you their most favourable rates. Not to worry though, there’s a number of more specialist lenders that cater to people with unusual incomes, and the advisors we work with know who they are. You can sell when you like too. If you bought a flat with balcony deck access in the last 10 years you may have experienced difficulty getting a mortgage or are perhaps on a high interest rate. If selling the house is inevitable, you could do it quickly rather … The house is a three bed end of terrace which has been extended both sideways (yet keeping the side entrance) and into the garden. 5799376). insurance, Compare 0% balance It’s possible. Getting a mortgage is dependent on the quality of the flat itself and how well the estates are maintained. This is because these flats can have a lower market value than flats in blocks with a high level of owner-occupied properties. Of course, ex-council flats can come with their own set of challenges (particularly around financing), so in this piece, we’re going to outline what to expect and look out for if you’re thinking of buying one. Another feature sometimes seen in local authority blocks is external walkways to access the flats, and some lenders will also refuse to lend on properties with this type of access. They will offer any advice specific to you and your needs. rates, Get They’ll assess how much you’re already spending and your existing financial obligations. Each local-authority property is different and it is up to you to judge the area and decide whether it … Of course, ex-council flats can come with their own set of challenges (particularly around financing), so in this piece, we’re going to outline what to expect and look out for if you’re thinking of buying one. Registered office: Imperial House, Imperial Way, Newport, Gwent, NP10 8UH, United Kingdom. We are an information only website and aim to provide the best guides and tips but can’t guarantee to be perfect, so do note you use the information at your own risk and we can’t accept liability if things go wrong. Gocompare.com Limited is registered in England and Wales (Company No. Free mortgage advice and brokerage service. As raising a deposit for a mortgage can take years now for the average first time buyer and even then many potential buyers are priced out of the market, it now seems that many ex-council estates are slowly starting to fill up with first time buyers that are eager to get themselves onto the property ladder at an affordable price. Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press. MortgageGym partner brokers will charge a fee, which is payable when your mortgage application is submitted. Some types of buy to let mortgages are not regulated by the FCA. We’ll find the perfect mortgage broker for you - for free, Save time and money with an expert mortgage broker who specialises in cases like yours, Yes! Most mortgage lenders have an upper age limit of 75, some go up to 85 and a minority will lend with no upper age limit under the right circumstances. Please email us on [email protected] if you see anything that needs updating and we will do so ASAP. We did this. quotes, Get Get in touch if you want to know more. Of course, this is not something to be taken lightly. This could mean that you have to find a larger deposit than you expected. If you’re going through a divorce, it’s understandable you might be concerned about your home – especially if both you and your ex-partner have a joint mortgage. This can include the time left on the lease (anything below 70 years is a red flag), and imminent repairs due on the building itself.
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