Common Pitfalls to Avoid When Buying a Flat in the UK

Mistakes to Avoid When Buying a Flat in the UK

1. Not Understanding Leasehold vs. Freehold

Most flats sold in the UK are leasehold meaning that once you purchase a property you own it for a certain amount of time, but the land on which the property is constructed is owned by a freeholder. Conversely, freehold properties involve ownership of the land on which structures are built to make up real estate property.

There are some risks associated with leasehold flats, for instance, property with a lease term of less than 80 years is more difficult to sell and expensive to extend. In addition, both the ground rent and the service charges are high, so ensure they are reasonable.

2. Skipping a Property Survey

People often do not wish to pay for a property survey when buying a house, which is unwise. Surveys assist in identifying emergent problems, for example, structural, damp or poor plumbing. If it is an older property or one that you think might be in a poor state, a homebuyer’s report might be necessary or even a full structural survey.

3. Overlooking Additional Costs

Many buyers focus only on the purchase price and forget to consider additional costs, including:

• Stamp Duty Land Tax (SDLT)
• Solicitor and conveyancing fees
• Mortgage arrangement fees
• Moving costs
• Renovations or repairs
• Make a comprehensive budget that covers these costs upfront.

4. Ignoring Local Area Research

The flat might present a picture perfect, but what is the state of the neighbourhood? Consider factors like:

• Schools, shops and public transport facilities are some of the features which should surround the building.
• Noise levels and safety.
• Possibilities that may arise in future influencing the value of a property.
• Time your visit at different periods of the day to get the best experience.

5. Failing to Secure a Mortgage in Principle

(Mortgage in Principle) MIP allows you to know how much you can afford before you start the bid for homes and gives you credibility as a buyer. It’s disastrous to spend months looking for the right flat only to lose it to some other person due to some delay in the financing period.

6. Not Considering Resale Value

The flat may suit your needs today, but is it worthwhile to consider the resale value? Factors that can affect resale value are:

• Location and amenities.
• State of the residence and the division of space.
• Length of the lease.
• A property which would turn difficult to sell at some point in the future could become a liability.