it's self-contained. Gibbens adds: "For Londoners, for example, buying an ex-council may well mean their best chance of affordability living in the Zones especially 1 and 2. You both also have the right to return to the property, even if you have agreed that one of you will leave. Example of BTL yield: If you bought your two bedroom council house for 100,000 and charged your tenants 600pcm, the annual rental income would be 7,200. Owner John . First time buyers can therefore sometimes save around 40% by buying ex-local authority properties. Lenders can also be put off by these properties if they're surrounded by a high concentration of rented council houses (rather than owner-occupied properties). In a lot of cases, buying an ex-council house is the only way to upgrade from a small flat. Avoid costly fall-throughs by picking the right lender from the beginning. These properties have been a feature on the market since right-to-buy was introduced in the 80s. The information update date is May 17, 2022. Some lenders are more reluctant to lend for ex-council homes. . . I am assuming the lender will want the deeds changed before lending. Basically my question is as above, ex-council house on a small estate in a desirable (to u Create an account to join the conversation Have your say, get notified on what matters to you and see fewer ads Some of the methods of construction used are unacceptable to mortgage lenders so it is important that surveyors are familiar with the type of construction used on council estates in the area they cover. Caroline Arslanguloglu is an employee working in Employment and Social Development Canada, according to the data provided by Shared Services Canada (SSC), Minister of Public Services and Procurement. Interest Only Lifetime Mortgages Ex Council Properties Ex-Housing Association. It turns out the house were trying to buy is ex council and there is a covenant on it saying that i cant build anything anywhere on the property. This is immediately preceding their application to purchase a property. Yes, you can get a mortgage on an ex-council house made of concrete. Right to Buy is a scheme in England that allows most council home tenants, as well as some housing association tenants, to buy their council property at a discount. So in the last 39 years has made home . My brother viewed a house today. 4) Ex-council houses. Wide tree-lined roads, tidy gardens, good solid houses. Mortgage lender Halifax reports that the average price in the village jumped from 339,912 to 501,638 in the 12 months to January 2021. . Twitter; Instagram; Office Hours. Christian Dugard, founder EXLA London . It is very expensive to treat. This advice applies to England. Crystal Gate House 28-30 Worship . Buying an Ex Council House. With our finger on the pulse of the London ex-council market, we're perfectly placed to help investors to grow and manage their portfolio. We are purchasing an ex council house to let and would like to turn it into a HMO. This surcharge could be refunded on a later claim if the ex-council flat is sold within 36 months of purchasing your new dwelling. Areas We Cover. with up to 3 family members who have lived in your home for the last 12 months. Some council estates do still have serious social problems, so high-risk estates are to be avoided. It is a nice 2 bed semi with a garage, pretty perfect for his current needs. Signing a three-year rental agreement with the housing . . About Us; Blog; It is likely that you will need a larger deposit too. Speak to an expert on ex-local authority flats. Buying ex council stock is often a good investment. Can you get a mortgage on a concrete ex-council house? They were easy to assemble and build. you're a secure tenant. Hi guys would anybody be able to help a friend of mine is trying to buy his ex council property it's not a high-rise as in the standard meaning it's basically three floors up but too high street lenders have been out and classified it as that and won't lend on it despite it having LTV . Remortgaging your ex-council property. If you'd like help on getting a mortgage for a buy-to-let, ex-local council property, get in touch on 0808 189 2301 or make an enquiry with Online Mortgage Advisor. 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 . On the sale or assignment of lease of a property to which the restriction applies these rural ex-council houses can only be transferred with the council's consent. Get free advice and best rates from Lending Expert when you apply >> Loans. Yields tend to be good as the properties can often be bought for less per square foot compared to other property types, but the extra space one often gets means the rents are often higher and therefore so are yields. Ex council houses are usually spacious with plenty of storage space. comments/suggestions are much appreciated. Lenders may request some additional information before deciding whether to make you an offer for an ex-council house mortgage. 1939 to 1965. The scheme has been around for over 40 years, having been originally been introduced by Margaret Thatcher in the Housing Act 1980. I wonder if I may seek your opinions. If you have been excluded from the . Some of the names of the building companies and types include: Trusteel MkII, Trusteel 3M, Telford (1920s), BISF, Nissen-Petren, Falkiner-Nutall, Birmingham Corporation, Arrowhead, Keyhouses Unibuilt, Steane and British Housing among others. Christian Dugard, founder EXLA London, says: "Ex-council properties are more affordable, with generally lower service charges and in some great locations, for example you could pick up a . "The council say the total bill will be 12m and we have to pay another 5,000. Just Retirement Mortgages. The scheme has been abolished in Wales and Scotland. Not all mortgage lenders will loan on ex-local authority homes, particularly buildings which have "deck access" to front doors via a vulnerable long communal balcony. They might also call it 'social housing'. Click here to see balcony deck access products. It is possible to get a buy-to-let mortgage on an ex-council house. FCA authorised and regulated mortgage experts. Right to Buy Mortgages offer discounts to buy your home if you are a council tenant. 24-7 Mortgages and KPM Financial Services is a trading name of Kevin McGee, a mortgage broker not a lender and insurance intermediary. I am assuming the lender will want the deeds changed before lending. CGT is all due on her if you do not have a share in the property. Select the one that looks best to you and work with a broker to submit a mortgage application including information on your incomings, outgoing, deposit and credit score. Loans; Personal Loans. Getting a mortgage for an ex-council house might not be as smooth or easy as it would be for a . Right-to-buy put 2.5m former council homes into the property market and many are spacious, well built and a good deal - but beware the traps. Right to Buy is an affordable housing scheme open exclusively to council property tenants (and some housing association tenants). The most common type of concrete housing was Pre-Cast Reinforced Concrete. The introduction of 'Right to Buy' in the 1980s transformed the private market for ex-council housing in the UK and since then, many former council flats and houses have . As well as getting more space, ex-council properties are significantly cheaper; the Royal Institution of Chartered Surveyors (RICS . The remortgage pack includes: current service charge account balance and statement (including ground rent) Since its introduction in 1980, the Government's Right to Buy scheme has helped millions of people living in council housing to purchase the homes they currently rent and start to store equity in their property by paying off a mortgage rather than continuing to pay money to their landlords. Follow Us. Many are undergoing regeneration which could mean . Remortgaging your ex-council property. About 300 houses. Annual rental income / property value (x 100) = 7.2%. Her cost for CGT purposes will be her 50% share of the cost in 1990 plus the value of the other 50% share inherited in 2015. Signing a three-year rental agreement with the housing . without permission from the council first. One of the biggest pros of buying an ex council house is that they tend to be much cheaper in comparison to other similar-sized properties. However, some people may be put off by the Right to . Show the Council a contract of sale of the old house and then they issued consent to sale of the ex council house. I'm sure there are many decent ex-council areas around the country, houses where it's not immediately obvious of the history. North London; South London; East London; West London; Helpful Links. An experienced broker will talk you through a list of lenders offering ex-council house mortgages and the best rates they can find for your financial situation. A young man managed to buy his 46,000 ex-council house by taking out a mortgage - with his mother. 23 Jan 2012. Between 1945 and 1955 around 20% of new housing was system-built, amounting to some 500,000 units, with a further 750,000 units being . I disagree with right-to-buy but it is an option for you. Right on the Edge of a country park, 200 yrds within the Birmingham city boundary with Worcesetershire. The Section 157 restriction is a life-time covenant and stays with the ex-council property irrespective if you are the first buyer or subsequent ones. A two bedroom ex-local authority property in good condition in Southfields will typically sell for between 380,000 and 400,000. Postby Jholm Wed Jun 09, 2021 9:53 am. However, it adds additional complexity. you've had a . A lot of council houses (around here anyway) have concrete cancer. Thirty years . We have been in touch with the council to get the restrictive covenant varied and they have come back with a price including legal fees. You're able to secure an ex-council home mortgage with Lending Expert. Housing, mortgages, debt and related issues. right to acquire for some housing association tenants. Tenants like the extra space and especially the good . A fee of 350.00 will need to be paid to the Council before the application will be processed. Some of the other flats paid 15,000 last year and now have demands for another 15,000," says Whitehouse. Since the Right to Buy Scheme was introduced in 1980, around 2.6 million council homes have been sold to tenants. If you've applied for a new mortgage or to borrow more money, or if you're a lender or solicitor and your client is remortgaging, then the mortgage provider may need information from us. 1,000 - 5,000 Loans; . 2 minutes drive to . with a spouse, civil partner or other joint tenant. Over 1072 mortgage products. we've been viewing some ex-council houses and want to know what are the Pros and Cons of buying this type of property. Niche Advice is not a Mortgage Lender but a Broker that offers appropriate advice to mortgage applicants with potentially problematic properties including those with balcony access. However, it will be hard to find a mortgage lender as they usually consider ex-council property and structures made of concrete to be difficult to resell. They are also made of sturdy structures but lack the . If you're looking at purchasing an ex-council property, please be aware that it must be valued at over 150,000 if you're buying in London and the Southeast. Qualifying tenants upon meeting specified length-of-tenancy requirements are automatically given the right to purchase their home, with discounts available of up to 82,800, increasing to 110,500 for qualifying properties in London. 101 Smart Ltd is a registered limited company in England (Reg No 5294196). 2 Kiing sized bedroomed house, Assured tenancy with Hyde housing, wheelchair accessible so all good sized rooms, solar panelled for cheaper fuel costs , combi boiler, loft with fixed ladder, double glazed windows..Pets allowed, back garden, own parking.Beautiful quiet village with schools, train station , bus stop thriving village community centre all in walking distance. However, it was during the post-war period that production stepped up a gear. If you qualify, you can buy your home: by yourself. The 21-year-old only needed 24,470 home loan but he'd just . The other was . The biggest upside to buying an ex-council house is that they tend to be far cheaper than comparably-sized properties, within the same area. If you've applied for a new mortgage or to borrow more money, or if you're a lender or solicitor and your client is remortgaging, then the mortgage provider may need information from us.