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Trampa501

Buyers Of Cheap Ex Council Flats Landed With 50K Bills.

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The potential of 5 figure repair bills on large blocks need to be explained in person to council tenants who are considering buying their flats. On the other hand, maybe councils should disallow RTB in large blocks like these.

Two flats I have my eye on are on the market in large brutalist blocks. The sellers both want £110k apiece for them, which are horrendously overpriced. Imagine getting a £40k bill on top of that. :blink:

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So they bought a flat at a massive discount in leafy Oxford and now they are whinging as the block has to be maintained.

Aren't they just paying a bit of their massive discount back?

I could sympathise with later buyers but not the original council tenants who bought.

And how much has the price of the flat gone up by since 2012?

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So they bought a flat at a massive discount in leafy Oxford and now they are whinging as the block has to be maintained.

Aren't they just paying a bit of their massive discount back?

I could sympathise with later buyers but not the original council tenants who bought.

And how much has the price of the flat gone up by since 2012?

This. Caveat Emptor. They chose to trade a secure tenancy at a reduced rate for the glittering riches of 'home ownership' in the housing obsessed Uk.

If they didn't read the terms of the leasehold, more fool them.

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No-one with half a brain would buy one of these leaseholds without understanding the responsibilities they have to undertake. Oh... my sister has just got her foot on the ladder with a RTB flat, letting go of her lifetime tenancy which I told her would likely be worth more than the 50% discount she received. Still I'm the fool who rents and missed out on the mad gains in the London market.... You can never go wrong with property, innit!

With both my sisters building towards their BTL empires, I should have a choice of who I rent from in my old age.... just as long as they can afford the maintenance bills. :P

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Where did they get the money from to buy these in the first place? IIRC it's more or less impossible to get a mortgage on ex council flats in tall buildings.

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This. Caveat Emptor. They chose to trade a secure tenancy at a reduced rate for the glittering riches of 'home ownership' in the housing obsessed Uk.

If they didn't read the terms of the leasehold, more fool them.

Spot on, anyone who hasn't worked out that owning leasehold is really owning or that predictions of future costs aren't worth the paper they written on is liable to get shafted.

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It's bad to get a bill for 10s of Ks, but normally these local authority maintained buildings have much lower maintenance fees than an equivalent private sector development. Must suck that they will be living alongside people who are getting it done without a massive bill.

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In December, councillor Linda Smith told the Oxford Mail that a £50,000 bill “may sound frightening” and explained that the council was offering leaseholders payment plans of between one and three years, with three years interest-free – £50,000 split over three years is £1,389 a month.

Aside from the issues re the RTB only in Oxford! Does one not have £1,389 spare a month for 3 years?

Ramping up RTB on naff properties and moving the repair costs onto the new owners. Interesting angle. I had thought RTB extension was to get the decent prop's into the hands of landlords + votes. I suppose can unload the dross elsewhere.

Edited by Ash4781

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From the guardian link


Council tenants thinking of taking up the right to buy their home have been warned they could end up being virtually bankrupt by eye-watering major works bills from their local authority freeholder. The issue affects people who have bought former council flats on the open market, as well as right to buy owners.

Take, for example, the plight of 50 leaseholders in Oxford. In January, in the latest twist in an eight-year saga, Oxford city council presented them with a £50,000 bill for refurbishment of their tower block. Not £50,000 between them, but £50,000 each.

That type of problem has been in the news from time to time ever since right to buy was first introduced. The homes get offloaded and then the council's cronies make a fortune from freshly discovered need for repairs etc - not the council's problem anymore.

People buying that stuff should remember the old saying - buyer beware.

Edited by billybong

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£50,000 per flat to do routine repairs on an existing fairly simple structure... How much would it cost just to knock them down and rebuild?

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Wait for the bills for the new build high-rise flats to come through the door £50k will look like a bargain .....acrylic /silicone render/insulation systems are a disaster waiting to happen the same can be said for most of the PFI hospitals/schools built in the last ten years or so using these systems

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I don't have any sympathy. I'm looking at houses for sale at prices that are £100,000 more than they were bought for, with no improvements, in some cases as little as 18 months ago.

The papers aren't up in arms about that.

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Aside from the issues re the RTB only in Oxford! Does one not have £1,389 spare a month for 3 years?

Ramping up RTB on naff properties and moving the repair costs onto the new owners. Interesting angle. I had thought RTB extension was to get the decent prop's into the hands of landlords + votes. I suppose can unload the dross elsewhere.

Provided they use the money wisely, I'd have no problem with councils making a few quid on communal repairs on leasehold RTB properties - sadly using money wisely and councils are two concepts that tend not to go together.

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I don't have any sympathy. I'm looking at houses for sale at prices that are £100,000 more than they were bought for, with no improvements, in some cases as little as 18 months ago.

The papers aren't up in arms about that.

Absolutely! How can a 1950s 3-bed semi be "worth" £250,000 when it's 65 years old and at best "patched up" with odd repairs, or worse, left to wear and tear through the decades. It's as if houses never ever age and "HPI forever innit" even if you have to deal with mold and dampness, crappy single glazed windows, crappy noise and heat insulation with the walls etc. Face it - even houses have a shelf-life.

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I don't have any sympathy. I'm looking at houses for sale at prices that are £100,000 more than they were bought for, with no improvements, in some cases as little as 18 months ago.

The papers aren't up in arms about that.

But £5 on a monthly gas bill and, oh my god, wouldn't the papers be all over that injustice!

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