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[tunnie]

Been busy viewing flats in London today, saw 6 in total. Took shine to one in Wimbledon! Only short walk from Putney.

Only issue with flats is they are leasehold rather than freehold, obviously freehold is better. But practically all flats are leasehold  :-/

One i saw had 100 years on its lease, don't plan on living there for ever, plan would be to move after 5/10 years.

Anyone bought leasehold? I know need to avoid ones sub 70/60 years as they can be difficult to get a mortgage

[Lazydocker]

The difference is simple...

Freehold - You own it outright.

Leasehold - You own the property but not the building.

Essentially, a Leasehold property just means that you'll have a rent to pay as well as the Mortgage

[tunnie]

Cheers, i've budgeted for 'ground rent' 

[Lazydocker]

As it happens, I own my property Freehold but still pay ground rent as it's on a private estate

[Lazydocker]

Incidentally... Wouldn't you be better buying a house?

[tunnie]

As it happens, I own my property Freehold but still pay ground rent as it's on a private estate

Just an extra bill to pay really, freehold is better, but i think most flats in London will be lease

[tunnie]

Incidentally... Wouldn't you be better buying a house?

I would prefer a house, but flat near work means £0 commuting costs

[Nickbat]

I think you should forget freehold flats:

"It is worth remembering that freehold flats are not widely accepted by mortgage lenders, which could have an impact on the saleability of the property when you come to move on."

http://www.thisismoney.co.uk/mortgages-and-homes/ask-an-expert/article.html?in_article_id=401646&in_page_id=109
 

[HolyCount]

TBH with flats leasehold is the way to go. You can get freehold, but, say you are on the ground floor and the flat above has a leaky roof, you have no wway of compelling the owner to repair -- and, of course the disrepair will affect your flat. Similar situation arises if you are the guy up top -- you will have a flying freehold, as you won't own the ground below --- but he ( the guy now below) can allow his walls to bulge and colllapse. Naturally your flat will follow!!!

The leasehold situation .... each lease should contain clauses and covenants imposing the duty to keep the fabric of the building in good repair, probably also in good decoration ( keeping the value of the block higher). There will also be covenants regarding noise and nuisance. A pain if you want a party -- but a godsend when the neighbours want one !!!!

It is sometimes harder to mortgage a freehold flat than a leasehold for these (clumsily illustrated) reasons.

[Lazydocker]

Incidentally... Wouldn't you be better buying a house?

I would prefer a house, but flat near work means £0 commuting costs

but you've just LPG converted your car to make that more affordable :-/

[tidla]

in brum ground rent is peanuts £5 quarter. the thing to watch for is the general maintenance charges as there are high/low rates/ good companies and spenders

[tunnie]

Cheers all 

Did not think about freehold mortgage issue!

[tunnie]

in brum ground rent is peanuts £5 quarter. the thing to watch for is the general maintenance charges as there are high/low rates/ good companies and spenders

£5 

Tis £100 a month on average in London! 

[HolyCount]

in brum ground rent is peanuts £5 quarter. the thing to watch for is the general maintenance charges as there are high/low rates/ good companies and spenders

Avoid a block with a lift -- and preferably go more modern. Lifts and old fabric cause havoc with maintenance charges. Also make sure they have a sinking fund to cover unexpected repairs (otherwise they will be knocking on your door for your share for the new roof!).

You can buy into a block where it is run and the freehold owned by a management company, made up of the owners. Each has the leasehold interest in their own flats and a share in the freehold interest -- best of both worlds.

[tunnie]

Incidentally... Wouldn't you be better buying a house?

I would prefer a house, but flat near work means £0 commuting costs

but you've just LPG converted your car to make that more affordable :-/

Its still costs £225/£250 month in fuel alone commuting 

Add in Tyres, oil, servicing, going to be £300/400 at least.... doing 40k /year, my 2.2 does not have much life left in it, maybe 2 years max?

I own my car outright, but once that goes bang, i'd have to splash fair bit of cash on a semi-decent car. Sadly lot of second hand Omega's now have same miles, no forum will be as good as this, so my costs will only go higher, LPG is uncertain too, it will rise.

London its fixed costs, plus loads of my mates live there