Owning your own home

There is never a disadvantage to having a share of the freehold.

You will have to meet once a year and discuss the maintenance and upkeep of the externals of the building etc, but aside from that it's got to be better than paying some management firm.

This is what I thought. Hopefully because it's a new build it will be some time before anything big needs doing.

So now I need to call the bank about putting in a proper application, rather than an AIP, I guess? And find a solicitor?

The agent says the owner wants it all wrapped up within 4 weeks. That's unlikely, right?

Not unlikely, but it does depend how quickly your solicitor can act.

Offer to pay them a fee in advance to get the searches started etc.

For investment purposes then XLA is probably the way to go. The room sizes are generally all decent, and haven't been sliced up in some half-arsed manner like the vast majority of the Victorian conversions that are on the market now.

Depends how long you want to be in it (as in have your money tied into it) for.

I was thinking along these lines. I live XLA now and as long as the neighbours aren't total reprobates then they make very decent homes.

Any property I bought would definitely be a keeper and hopefully the 1st of several, given time. XLA fits the bill as I think I'd be happy living in one for the medium-longish term future at least...no wifey and no kids so no extra curricular problems/distractions #touchwood

Right, that propery was left unsealed for ages (no doors/windows, or roof) and the tarping that was done on it was poor, so the rain was falling onto direct onto the top of the bricks. You can often see the salt stains in the brickwork, which I believe is an indicator of potential damp problems (can anyone confirm this?). Add a musty smell, and I'd be very wary.

Like I said, get at least the homebuyers survey on it, rather than just the valuation one. :)

I'd also want to know what the building guarentee is, and a load of things like that before I took it. We've got a friend who bought a flat in a property that was recently renovated and split into flats in north london, who has only just moved back into it after huge damp problems, and having to fight with their surveyor to get them sorted.

Mitcham's not that much the middle of nowhere, from where that flat is, you can be a Colliers Wood tube in 10/15 minutes (walking), at Mitcham Eastfields station in 10/15 minutes (walking), both of which have OK bike parking, and you're less than 5 minutes from a tram stop that will get you to Wimbledon or Croydon. The buses down there aren't that bad, the N44 stops pretty much at the end of your road, and the centre of Mitcham is on a good number of routes.

So now I need to call the bank about putting in a proper application, rather than an AIP, I guess? And find a solicitor?

The agent says the owner wants it all wrapped up within 4 weeks. That's unlikely, right?

Awesome. Good news. Just have a full survey done on the place just to be sure.

If it's been sat there a while why is the agent putting pressure on you already saying that they want it complete in 4 weeks?

I'm sure you'll put your mark on the place in time mate.

We finally exchanged contracts last week. Bellway homes took two months to come back to us on simple questions before finalising the contract.

We've now found out that they've delayed the completion date of the build until January 31st. Arseholes.

Luckily, we have a long stop date that matches the expiry of our mortgage offer... only three months to wait now.

If it's been sat there a while why is the agent putting pressure on you already saying that they want it complete in 4 weeks?

It took ages to build, it's been up for sale for a ages, and they need to get some capital out of the project.

Sparky. As it's a new build there would be a lot of moisture in the fabric which may contribute towards the smell, particularly if it's been left closed up for a while. Make sure it's got 10 year NHBC guarantee or similar.
There looks to be a leak around the down pipe but that would cause damp in the lower floors, not the top one.
I wouldn't be too worried about the main structure being open to the elements. It's stuff like the floors (timber?) that would be a concern but these would be obvious from the outset as, assuming they are chipboard, they would blow up (swell) from any rainwater hitting them.

I guess the question I am getting at is this...is it worth getting something now thats not as nice just to get on the ladder, or would it be better to wait a couple years and get something a little nicer in a nicer area and maybe not ex-LA?

Talking to a friend today who is heavily into property investment, the talk is of rents continuing to rise over the coming years as there is still a major shortage of property in London. Whether property prices will do the same is another matter.

If you can buy yourself a flat that will yield a positive return on rental income v's outgoings including mortgage, agent's fees, repairs, service charges, etc. and you're not going to spend fortunes doing it up to any standard higher than basic BTL condition, then go for it. It can be an eye opener how quickly a property can deteriorate when let out rather than lived in by the owner but I guess, with your family's experience, you know what to expect in this area.

No real experience of buying new builds, but make a point of keeping on at the contractors to get stuff done.

They can have an issue of not finishing things properly.

Keep a snag list of stuff that hasn't properly been finished and make sure that there's a return by the contractors to iron out and deal with anything included in any agreement you make.

Also what's the price difference between that and a 2 bed Sparky? I thought that was what you were looking at originally?

I believe that Nationwide is £500 PCM nothing more.

Only for the first 2 years or 5 years or whatever the initial term is before it reverts to standard rate.

Sorry what do you mean Hippy?

You will have to meet once a year and discuss the maintenance and upkeep of the externals of the building etc, but aside from that it's got to be better than paying some management firm.

You don't have to.

No, but you should plan for the maintenance of the building.

Sorry what do you mean Hippy?

Nationwide only limit overpayments to £500 during the initial mortgage term. Once you move to their standard variable rate, after 5 years fixed, you will be able to overpay unlimited. There's probably a penalty for early get out.

No, but you should plan for the maintenance of the building.

I plan to have them remove the annoying fucking lock from my gate before the whole fence suffers a very rapid onset case of wood rot or white ants..

Um, so, I've had an offer accepted on this place. Suddenly thinking to myself: "What's the catch?".

The agent said that it's being sold as leasehold, then the freehold will be handed over to the three flats after that - they'll have to pay legal costs but there's no charge for the freehold.

So that's a concern.

Also the smell of damp.

Advice, anyone? Bit nervous.

Er, yes: do not take the agent's word for it; get your brief to make the sale of the freehold (or part thereof) to you a condition of the purchase. Places left uninhabited often smell a bit musty so don't worry about that too much. If you're really worried, get a survey or pay a damp specialist to check it out before you exchange.

Nationwide only limit overpayments to £500 during the initial mortgage term. Once you move to their standard variable rate, after 5 years fixed, you will be able to overpay unlimited. There's probably a penalty for early get out.

Thanks Hippy good to know.

I hardly think we'll hit the £500 but you never know!!

Amazing that even if you over pay by £50 a month I'd shave almost 5 years off my mortgage!! Which then takes it down to the 25 year term anyway.

Edit - Anyway I'm off to the bank shortly to get all this sorted. Then it's on with surveys and what not.

OK, offer accepted. Solicitor picked.

^ now the fun part starts

It's not fun so far. Worries include:

• Should I even be buying a flat?
  
• Should I be buying this one?
  
• How am I going to pay stamp duty?
  
• Do I hand in notice on my flat now, or wait?
  
• Oh shit...
  

Tell me about it.

I'm thankful to be over the falling asleep thinking about mortgage and waking up thinking about mortgage.