Will i regret a studio flat as a first home?

[Benbay001]

Hi
By the end of the year I plan to have bought my first place of my own, but my budget is limited.
For all intents and purposes im single (long distance relationship) and rarely have friends over and if I do its one at a time.
I generally play computer in the evenings so don't need much space for a sofa etc.

I have a budget of £110k to spend in Southampton.
This opens up some 1 bed flats, but they are generally st areas.
Where as the studios are in nicer areas but for the same money.

I think I could happily live in a studio but everyone tells me im mad and will regret it.
Does anyone have any opinions?

Thanks in advance.

[Voldemort]

There's a reason the tv show is called 'Location, location, location.'

And always remember how easy a property will be to sell on when you decide to/earn enough to move on.

[otherman]

I guess you'll only regret it if it's unsaleable later. How popular are they?

[kiethton]

Studio's are a lot harder to sell on and can be more of an issue to raise a mortgage against - all key considerations.

How much longer would you have to continue saving if you were to get the extra (£10k/£20k?) to make the jump to a 1 bed in the same area?

[ghost83]

Even though you’re buying, a flat is usually leasehold!

So make sure it’s freehold!!!

Also I’d rly go for a house of some sort and even rent it out in the future

[TooMany2cvs]

ghost83 said:

Even though you’re buying, a flat is usually leasehold!

So make sure it’s freehold!!!

A freehold flat? How does that work, then...?

[Andy-SP2]

I bought a studio flat back in the 80s and it was a great little place.

It had a fold down bed that was built into the wardrobe and it worked a treat.

It was on Bursledon Green ( Southampton) and I paid £25K for it

[FerdiZ28]

Are you a hunter?

If so, don't underestimate the amount of space taken up by pelts, and the fact that any butchery you may do/are planning to do in the future can sometimes be at odds with a normal life, when forced to share the living space with the carcasses.

Just a thought to perhaps bear in mind.

[daddy cool]

TooMany2cvs said:

A freehold flat? How does that work, then...?

You own a share of the freehold, along with all the other flats.

Can be a PITA getting a mortgage on one unless the management company has been set-up properly.

[TooMany2cvs]

daddy cool said:

TooMany2cvs said:

A freehold flat? How does that work, then...?

You own a share of the freehold, along with all the other flats.

Exactly.

You own two things... You own a leasehold flat, and you (separately) own a share in the company that owns the freehold of the entire building and leases the flat to you.

[Johnnytheboy]

Back to the OP's main question: I'd buy a st flat in a nice area.

And yes definitely get on the housing ladder. Much more satisfying paying a mortgage than rent.

[daddy cool]

TooMany2cvs said:

Exactly.

You own two things... You own a leasehold flat, and you (separately) own a share in the company that owns the freehold of the entire building and leases the flat to you.

...which I think everyone realises if you say "freehold flat".

[DonkeyApple]

Benbay001 said:

Hi
By the end of the year I plan to have bought my first place of my own, but my budget is limited.
For all intents and purposes im single (long distance relationship) and rarely have friends over and if I do its one at a time.
I generally play computer in the evenings so don't need much space for a sofa etc.

I have a budget of £110k to spend in Southampton.
This opens up some 1 bed flats, but they are generally st areas.
Where as the studios are in nicer areas but for the same money.

I think I could happily live in a studio but everyone tells me im mad and will regret it.
Does anyone have any opinions?

Thanks in advance.

Moving is expensive. It’s well worth considering that future cost and comparing it to the price gap between a studio and comparable 1 bedder. How much longer will it take you to accumulate the additional deposit requirement to get a 1 bedder instead and what can you do to your monthly finances to help allow a lender to lend you more etc.

And then what’s the downside to delaying the purchase so as to get what you want and what is actually going to be cheapest over the short to medium term?

For example, Sod’s Law is that within a year of purchasing your meet a long term partner and need a more suitable property which will mean taking a financial bath in fees and transaction costs when if you’d planned ahead that risk would be negated.

It’s also worth contrasting rental yields and ease between the two property types. As a young person your career or life path may take you away or your circumstances change quickly so which property type is easiest to rent out and to the higher quality tenants?

Also as a very crude rule of thumb, in an economic contraction a nice property in a crap area will get hit harder than a crap property in a nice area so compromising your location choice isn’t always a good idea.

[talksthetorque]

How much more is a two bed?
Rent the spare room out to a friend/random serial killer with smelly feet and get their rent to pay for the difference.
Ok, you have to share, but the flat will be much easier to sell and if you do decide to rent the whole thing out later you get a better class of tenant in a two bed*





*normally

[TooMany2cvs]

daddy cool said:

TooMany2cvs said:

Exactly.

You own two things... You own a leasehold flat, and you (separately) own a share in the company that owns the freehold of the entire building and leases the flat to you.

...which I think everyone realises if you say "freehold flat".

No, they think you mean a flat that's owned freehold.

Lots of people "realise" things that are completely wrong, then look surprised when they find out the reality.

[Funk]

TooMany2cvs said:

daddy cool said:

TooMany2cvs said:

A freehold flat? How does that work, then...?

You own a share of the freehold, along with all the other flats.

Exactly.

You own two things... You own a leasehold flat, and you (separately) own a share in the company that owns the freehold of the entire building and leases the flat to you.

I had questions about doing this and received some excellent advice - it may be helpful for those with any queries.

https://www.pistonheads.com/gassing/topic.asp?h=0&...

[Dr Mike Oxgreen]

TooMany2cvs said:

ghost83 said:

Even though you’re buying, a flat is usually leasehold!

So make sure it’s freehold!!!

A freehold flat? How does that work, then...?

Whilst it's perfectly possible to own a flat on a sort-of freehold basis (by becoming a shareholder or director of the company that owns the freehold on the overall building), it's a little unusual and sounds a bit of a faff to me. It also can't possibly give you the full freeholder privileges that you get with a freehold house.

There's absolutely no reason to avoid buying a leasehold flat - it's by far the most common way of doing it.

Would I buy a leasehold house? Probably not.

And to address the OP's question, if you like the studio flat and the area it's in, and you think it'll sell on when you want to, then there's absolutely no reason not to. Getting on the property ladder is rarely a bad idea!

Edited by Dr Mike Oxgreen on Monday 19th February 11:42

[Funk]

Dr Mike Oxgreen said:

TooMany2cvs said:

ghost83 said:

Even though you’re buying, a flat is usually leasehold!

So make sure it’s freehold!!!

A freehold flat? How does that work, then...?

Whilst it's perfectly possible to own a flat on a sort-of freehold basis (by becoming a shareholder or director of the company that owns the freehold on the overall building), it's a little unusual and sounds a bit of a faff to me. It also can't possibly give you the full freeholder privileges that you get with a freehold house.

There's absolutely no reason to avoid buying a leasehold flat - it's by far the most common way of doing it.

Would I buy a leasehold house? Probably not.

And to address the OP's question, if you like the studio flat and the area it's in, and you think it'll sell on when you want to, then there's absolutely no reason not to. Getting on the property ladder is rarely a bad idea!

Edited by Dr Mike Oxgreen on Monday 19th February 11:42

For flats it's standard (and far better to own than not to). As per my previous post I bought a share of my freehold a couple of years back and recommend it.

I would never buy a leasehold house - there was a lot in the news recently about how onerous this is and a massive backlash coming against sharp practices by housebuilders who've done this.

[TooMany2cvs]

Funk said:

I would never buy a leasehold house - there was a lot in the news recently about how onerous this is and a massive backlash coming against sharp practices by housebuilders who've done this.

The problem there isn't leasehold per se - a 999 year peppercorn lease is damn near the same thing as freehold.

The problem is either very short leases (but <80yr is usually unmortgageable anyway), and especially leases where the ground rent rises much more sharply than likely inflation. The really problematic ones can even double every 10 years. But who would be so daft as to fall for that...? I mean, it's written down in writing in the written lease, after all... Oh, people don't read things themselves, and just blindly use the solicitor the developer recommends...? Uh-huh...

[Codswallop]

Is the kitchen in a separate area?

Would be a deal breaker for me as I enjoy cooking, but wouldn't want the smells and vaporised oils misting all over everything else.