Some Advice on Two Properties We Like

[nevets2001uk]

OK a double part question on two properties we are looking at and really like.

**** Property 1 - 2 Bed Flat on at £146,000 which is part of 8 repossed properties in a 4yr old 10 flat complex.

Great property and condition. We have had the process of buying a repossed property exlpained by the agent but there are number of sticky points on the paperwork. The properties are on with 3 agents and none seem to know the exact lease info and insurance details. Latest news is that the freeholder is absent at the moment and there may be no current buildings insurance and there is certainly no maintenance.

We were considering a very cheeky £125,000 offer but on the basis that we spend no money on mortgage valuations etc until the paper had been passed to our solicitor for review (we're hoping from the lease he can tell us the true situation). However the agent said that the bank won't consider any offers until we have a firm mortgage agreement in place. We're confident we can get enough to purchase the property (Have been offered more) but are certain that if there's no insurance in place then they won't be willing to lend anyway.

Is there anything we can legally do to find out more as besides the problems it's a great flat.

**** Property 2 - 2 Bed Flat on at £144,950 which is 1 of 3 new ground floor conversions in an older detached house. All painting, carpets and full fitted kitchen are in place. Good location.

Apparently there is no ongoing maintenance agreement but simply a 5 way split on costs (includes 2 original 1st floor flats). We are told that all work is complete including a new roof and that nothing is scheduled for hopefully 3 years. We have been told that there would be 12 months notice on planned works including the oppotunity to see the quotes etc. Does this sound like normal practice. We don't really like the idea of hidden costs but would plan to save the £100 we budgeted for maintenance per month in an ISA to use for any upcoming work. One good thing is that if we move on before work is carried out we have a lump sum of savings that hasn't been given to the freeholder.

One questions we have raised without a full answer is who would pay for lighting in the communal hallway? No answer to that yet.

Finally they say that there is no payment required for insurance but we would simply need to take out our own buildings insurance. This sounds odd as my understanding with flats is that the insurance is uually organised by the maintenance company or freeholder. Will we have any issues getting a mortgage approved if they expect us to take out our own buildings insurance. If we do, should we value purely or own flat or the entire building structure as with a 5 flat building I can see that being very expensive.

That's my long ramble over. I'm sure some of this can't be easily answered without more detail but as a noivce FTB any advice is much appreciated.

[brian]

Curious question - are you factoring in falling prices and the collapse in the market for flats overall into your finance planning here?

Simply that I'd hate to see anyone jump into buying property in the current conditions, unless they have fully prepared themselves for it as part of their planning.

2c.