There are lots of different types of properties to consider if you want to invest in London. Many people will look solely at the private market. However, there is another option that could be very interesting; ex-council houses. They could prove to be great assets for investors. As one of the top names for managing the investment properties Haringey has, Finefair Ltd can help here.
What are they?
As you can probably tell from the name, ex-council homes are properties that were formerly social housing. There was a wave of building these properties in the 50s, 60s, and 70s to provide more homes in London. However, in the 80s the Government decided that council tenants should have the right to buy these properties. As a result, many are now in the hands of private owners.
There is a bit of a stigma about investing in ex-council homes. But, looking beyond this, they can be fantastic assets. They can provide a number of advantages, including:
Affordability
Generally ex-council homes are more affordable to buy. In some cases, they can be as much as 20% cheaper than private properties in the same area. This can be a great way to buy homes in areas with very high prices, especially locations in Zone 1 and 2.
Locations
There are council housing developments all over the capital, even in Prime locations like Chelsea, Kensington, and Notting Hill. As a result, buyers have the chance to purchase properties in great areas, close to prestigious newer developments and amenities.
Designs
While some people criticise the design of some council estates, there are many that have excellent designs. In fact, some of the buildings are iconic today. In most cases these homes were built for living in. Therefore, they tend to have larger rooms and more space. Plus, they generally have solid walls and floors.
Upkeep
One of the biggest advantages of ex-council homes is they tend to be in good condition. While in the council’s hands, they take responsibility for upkeep and maintenance. So, the properties often have a better history of repairs and upkeep.
What about the cons?
While all of the benefits above make these attractive investments, there are some important things to keep in mind. Whether you are looking at the investment properties Haringey has to offer or target other parts of the city, when it comes to ex-council assets, you need to think about:
Mortgage issues
There are some ex-council properties that can be tricky to mortgage. For example, you may have some issues with non-standard buildings, high rises, and properties with cladding. The main issue is that some lenders may be reluctant to lend if there isn’t a history of re-saleability. They can also be apprehensive if there are any safety fears.
Potential
Most investors want properties that have the potential to earn them a nice income for years while also increasing in value. Sadly, ex-council homes tend not to increase in value as much as private properties, even if they are in the same area. There can also be some limits on the ability to change the layout or extend these properties. But, they can be great rental assets that offer long term income.
Charges and other costs
A number of ex-council homes are leasehold properties. As a result, the council still owns the ground they stand on. That means the leaseholders are liable for a number of charges, including a service charge, ground rent, and maintenance fees. These extra costs can put pressure on the owner, especially if the building needs major repairs. It is always wise to enquire about the costs before investing. Plus, you should always check the length of any leasehold.
Ask us about the investment properties in Haringey
Finefair Ltd can give investors the very best support. We can look at different properties all over London to see what kind of potential they offer. Then, we can advise clients about what they should do. Plus, we can arrange everything from portfolio management to guaranteed rent.
So, if you want access to some of the best resources and a team that has info about the investment properties Haringey offers, speak to us. We are a team you can rely on to help you achieve your goals.
