Ex Local Authority blocks...

[j5nn]

Hello everyone!

I am on a flat search for my first home and think for our budget we are going to be looking for an ex local authority flat or similar. So I was hoping I might be able to get some recommendations on good blocks-they seem to vary wildly! I have also come across some blocks which arent local authority but are alot cheaper than period properties so any recommendations of those would also be welcome. We are looking to spend about 250k on a two bed pref with some outside space. Happy to do work and keen for a bit of a project!

I am looking at Peckham Rye, Camberwell, Brixton, East Dulwich as areas.

Any advice would be much appreciated. If people have experience of buying one of these flats I would love to hear about it also!

Thanks

Jen

[spider69]

If you are thinking of buying ex local authority flats take a deep breath until the madness passes

You will always be facing increasing increasing bills, flats on estates will always cost re block costs or estate costs

Better to look for ex council freehold properties not on council estates to avoid estate costs

You will never be incontrol

[Jeremy]

If you want somewhere fairly quiet, I used to live on the Denmark Hill estate, and it was fine. Denmark Hill station is not too far away, and good sized flats - many with 3 or 4 beds, many with a small balcony. A few have little patio gardens. Not many immediate local facilities though.

The Dog Kennel Hill estate can't be beaten for location (shops, station) but it's a bit more noisy.

The Nunhead estate, on the corner of Peckham Rye and Nunhead Lane, seems quite nice. The flats are a good size, and of course you're right next to the Rye. Nunhead and Peckham Rye stations are within an easy walk.

I like Norman Court up near Dulwich Park and the old Harvester, but transport is not so good unless you like buses.

[j5nn]

Thanks for your responses....so perhaps avoid ex local authority blocks unless they have freehold. How about blocks in general-there seem to be some nice art deco ones about? Otherwise we are pretty much priced out of the market!

[Jeremy]

Also, you'll probably make a much better return from a one bed period conversion than a two/three bed council flat.

[j5nn]

Need 2 bedrooms :-)

[Girl82]

I would echo what everybody else has said about ex-local authority blocks. I remember reading recently (I think it may have been on here!) about someone living in exactly that and the council issued them with something like a ?10,000 bill to do compulsory works to the property. I've also heard that it can be a similar story when you buy a leasehold flat in a council street property where Southwark still owns the freehold. While the ground rent and service charge can be attractively low in those sorts of properties, I've heard that the council can just issue you with a bill for compulsory works out of the blue, which can run into thousands of pounds.

[Saila]

I have a different perspective which disagrees with some of these posts. You do get those huge bills (around 10k mark) but it is much much less than the premium you pay for freehold or other period homes when u take into account the initial purchase price per square ft etc. So these are relatively tiny expenses vs the premiums for other properties.

Plus the work they do adds value to the property (eg brand new windows / security doors). Makes a huge difference to the feel of an estate too. They can only do so much, once windows are done - they are done!

Do your homework and perhaps buy something which has had the work just done.

Or, if you want upside on the value, buy as work is planned and budget for the works. Then you basically get a gd price on the flat and the sell on value is improved.

One tip - avoid flats with a lift. They charge more on service charge (unless u need a lift that is!)

Good luck

[midivydale]

You can get two bed flats in Nunhead for 250k;)

Another option is to get a one bed flat and add an extra bedroom. This can be done under your budget of 250k.

Just a thought.

[Jeremy]

The idea of adding an extra bedroom is a good one... either by finding a place large enough (maybe 700sqft) to make the reconfiguration possible, or even somewhere with loft space to potentially convert.

[Pugwash]

I would avoid any ex council flats - someone I worked with has a flat on the Kingswood Estate - their share of the works was in excess of ?30,000 - being pensioners they did not have the money so Southwark Council put a legal charge on the property. The old boy is now dead and his wife in a care home, son cannot sell the property so is having to offer it back to Southwark Council at a greatly reduced market price as no one will buy.

the house next door is in 2 flats and council owned. My neighbour purchased her top floor flat many years ago, but had to pay ?6000 as her share of external repairs, The annual ground rent increased dramatically and in the end she sold out as with 4 children and being a widow, could not afford to live their anymore.

We brought an ex council house in Sussex 7 years ago, however most of the street is privately owned and there is no extra charges. We paid ?127.000 for a 3 roomed house in 2005 and just an estimates from estate agents valuing it between ?135 - ?160K

[buddug]

Do not touch a flat with a Southwark Council freehold! I live in one of two flats in a victorian terrace and it's been a nightmare for the past 17 years. In a block it would be even worse, especially financially.

Too many housing officials at the council are of the mindset that freehold flats are the council's property and treat you as though you're a tenant (i.e. with contempt) despite the fact you own it via your mortgage.

This is now slowly changing, thank God, with the appointment of some excellent people at the council, but there are still those who believe they have enormous power over you, and the bureaucratic machine at the council - which is probably a nationwide thing - supports their behaviour and you end up spending half your life fighting against it.

[Jeremy]

buddug - if it's that bad, can't you and your neighbour just force Southwark to sell you the freehold?

[chellbirdse15]

I dont know if it helps but London and Quadrant are offering new homes on a part buy part rent senario... also there are new homes being offered on Ivydale Rd, they are in conjunction with the Major and the housing association, they are small two and three beds but reasonably priced not sure what sort of garden they have, would say smallish, but worth looking into..... I have to say that I agree with all the above statements, a friend of mine had to pay for windoww, doors, roof and repainting all over a period of three years and she had to sell her property in the end to pay the outstanding amounts of ?27, 650 she had to move in with her parents at the age of 47yrs until she could find somewhere else to live and decided to move to Spain and buy a place outright... Please be careful..... she went through hell for 5 yrs in total !!!

[StraferJack]

that assumes they can afford to buy the freehold surely? Not sure that's always feasible

[Jeremy]

StraferJack Wrote:

-------------------------------------------------------

> that assumes they can afford to buy the freehold

> surely? Not sure that's always feasible

You're right I guess. But if you're being rippsed off left right and centre, then even getting a loan to cover the enfranchisement might be financially prefereable. Perhaps. Anyway... off topic...

[StraferJack]

having had a share of freehold in the past, it's no magic bullet either. If everyone who buys the share is of similar mindset, it's great

But what tends to happen is people buy and sell, new people inherit the share and have different ideas - "I live on the ground floor, why would I want to pay for sprucing up shared hallways upstairs" etc

IN another thread, Londonmix and others have said that the UK, London especially, needs to get used to the more globally common idea of flats/condos/shared living. And I sort of agree with that - but culturally it's going to be a freaking nightmare as people don't seem very collaborative minded

[Siduhe]

To echo what others have said, if you're going to do it, go in with your eyes open and with a base assumption that you will need to pay ?10,000 at least for every set of major works. My first flat (years ago) was ex-LA, but my solicitor spent a long time badgering the council for information about planned works, cost of work done on similar sized estates in the area in the last five years etc, and so I wasn't surprised when the ?8,000 bill for just 2 new windows came in.

Although my flat only needed 2 new windows, 10 other other (council owned) flats had needed all 8 replacing as well as other structural works. The terms of the lease meant I had to share equally in the cost, even though I got little of the benefit. I had set money aside to pay a chunk of it and they let me spread the rest of the cost over 3 years. Wasn't great but at least I was prepared for it.

[j5nn]

Wow ok, time for a rethink! Thanks so much for all your advice, its really valuable. I think I will steer clear of Ex LA places for the time being and try for somewhere in a 1930s block or similar or a period property that has potential for expansion etc.

Just got to be patient now and wait for properties to come on the market :-)

THANK YOU!

[buddug]

Oh Jeremy! If only. As Strafer Jack said, buying the freehold is not always feasible. My upstairs neighbour and I have been quoted about ?5,000 each if we want to buy it - simply not affordable, for either of us.

[*Tee*]

In my victorian terrace building are 2 flats, i live on the ground floor and i have just filled out and posted my right to buy form to purchase my flat. I know from speaking with my neighbour that he has no plans to purchase his home, meaning there will be 1 home owner and 1 council tenant in the building. Do you think the council will let me buy a share of the freehold?

looking through nightmare threads on people being hit with huge bills, i want some control

any advice will be greatly appreciated.

thanks.

[Carrie]

I am afraid you would not be able to purchase share of the freehold from the council whilst the other flat is still tenanted.

[midivydale]

Tee,

Carrie is right you are not able to purchase freehold unless both of you apply. However, I believe that the horrific huge bills associated with leasehold properties are mainly relevant when you live on a large estate. There is only so much work to be done to a Victorian terrace.

Before you complete your purchase ask for a 5yr estimate so that you get an idea of proposed work.

I think that Southwark are taking a backseat when it comes to restoration and renovation of terraced homes, making a huge bill very unlikely.

On the other hand, this also means that should YOU require repairs you may be in for a very long wait as well as substandard work being carried out. This is sadly our experiences.

Good luck!

[woodland]

I live in an ex- council flat. I agree that major works bills are diffucult but they are not as difficult as finding ?350,00 for a two bed flat. A lot of blocks like mine are mostly owner occupied and are friendly and quiet places to live. Just do your research - avoid anything that hasn't had its windows or roof done for a while and definitley stay away from anything with a lift. Good luck.

[stecoward101]

Just to conteract the doom and gloom of purchasing ex local authority property. I purchased a 3 bed Ex LA flat in 2005 (granted before the crash) in bethnal green.

I bought the property for ?185K and I have had 1 major works program (?9k) since buying the place and it was recently valued at ?370K. I now rent the property to fantastic tennants for ?1850 a month (who enjoy the property as much as i did).

Additionally I had the best neighbours, a 40 foot garden, over looked by a school so no noise at the weekends and a great location from the tube station.

I suppose what I am saying is that the numbers still work in Ex LA properties and they can be as good to live in(and even better to rent out) as any other property.

hope your new place brings you smiles.