Costs to consider
If you are thinking of buying your home, it is strongly advised that you work out your current monthly outgoings as a tenant and compare that with the costs of being a homeowner. You can find out more through GOV.UK - Costs to consider.
The MoneyHelper is an independent organisation set up by the Government. They provide free, impartial advice on a range of financial matters. This includes tips and tools to help you -
- budget
- choose a mortgage
- work out whether you can afford monthly repayments
Buying a flat
If you buy a flat or maisonette you become a ‘leaseholder’ which means that you purchase the property on a long-term lease. This allows you and your family to live in the property for a fixed time, usually 125 years. We own the building, and we are responsible for the upkeep of it and the communal areas and facilities, but not the inside of your home. As a leaseholder you pay your share of these costs, these are known as service charges. There are 2 kinds of service charges -
- annual charges - are for services provided and day to day maintenance
- major works service charges - are for when a lot of repair or refurbishment work is needed. You may have to pay for major works service charges whenever your block is repaired or refurbished. Sometimes these charges can be as much as several hundred pounds each year or even several thousand pounds if your block needs major repairs such as re-roofing, cladding or new windows
More information about buying your council flat is available on the Government Right to Buy website.