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Buying a flat

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  • 30-12-2014 5:18pm
    #1
    IamtheWalrus
    Closed Accounts Posts: 6,075 ✭✭✭


    I am living in London for 5 years now and would like to buy a flat.

    I am a contractor. In the last 2 years, I have had unbroken contract stints (the previous 2 years I had 2 breaks, one 3 month and one 4 month).

    I am paying silly rent on my 1 bed flat.

    Can anyone tell me the pro's and con's of buying a flat in London? I am likely to get into negative equity?

    Am I right in saying that all I need to be concerned about is paying my mortgage? I have a deposit and stamp duty already saved.

    Is there anything else I need to take into account?


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    #2
    BrokenArrows
    Registered Users Posts: 7,498 ✭✭✭BrokenArrows


    You will need to be concerned with the leasehold and management fees for the apartment complex.


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    #3
    IamtheWalrus
    Closed Accounts Posts: 6,075 ✭✭✭IamtheWalrus


    BrokenArrows wrote: »
    You will need to be concerned with the leasehold and management fees for the apartment complex.

    Can you elaborate on that please?


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    #4
    Mint Sauce
    Registered Users Posts: 29,293 ✭✭✭✭Mint Sauce


    IamtheWalrus wrote: »
    Can you elaborate on that please?

    Annual fees for maintance of communal areas, services etc. Can vary depending on appartments/complex. As for negative equity, did London ever experience a drop, only a slow down I think.

    Dont forget council tax, although assume you have already been paying that, plus solicitor fees.


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    #5
    Ponster
    Moderators, Recreation & Hobbies Moderators Posts: 10,912 Mod ✭✭✭✭Ponster


    I think that as a contractor you may have to fork out a larger deposit rather than a salaried worker. I have no solid info as I won't be going down your route for another 12 months or so but it's the info received from colleagues.


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    #6
    BrokenArrows
    Registered Users Posts: 7,498 ✭✭✭BrokenArrows


    IamtheWalrus wrote: »
    Can you elaborate on that please?

    Basically in the UK owning property does not mean you own the land that it sits on. This is more common in apartments.

    hoa.org.uk/advice/guides-for-homeowners/i-am-buying/leasehold-v-freehold-whats-the-difference/


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    #7
    Playboy
    Registered Users Posts: 2,923 ✭✭✭Playboy


    These guys might be able to secure you a bigger mortgage by using your day rate in calculating your repayment capacity.

    http://www.contractormortgagesuk.com/


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    #8
    Louche Lad
    Registered Users Posts: 1,090 ✭✭✭Louche Lad


    There's a lot of useful stuff on this UK forum: http://forums.moneysavingexpert.com/


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    #9
    NoCrackHaving
    Registered Users Posts: 535 ✭✭✭NoCrackHaving


    Mint Sauce wrote: »
    Annual fees for maintance of communal areas, services etc. Can vary depending on appartments/complex. As for negative equity, did London ever experience a drop, only a slow down I think.

    Dont forget council tax, although assume you have already been paying that, plus solicitor fees.

    Early 90's property crash was fairly heavy 20-30% of value knocked off in London from 88/89 peaks and didn't recover until 95.


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