How I Bought a New Build Flat in London at 25 🔑
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- Опубліковано 6 чер 2024
- How I bought a flat in London at 25 - it’s a £315k 1 bed new build flat that I got through the shared ownership scheme. In this video, I talk through how I saved up a £22k deposit, how much I pay monthly for bills, and how much it cost in total to buy a new build off plan flat in London (after taking into account deposit, solicitor fees, mortgage broker fees, etc)
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My Empty London Flat Tour:
• I BOUGHT A FLAT IN LONDON
My Moving In Vlog:
• MOVING INTO MY FIRST A...
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Shared Ownership Calculation from the Government site:
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Timestamps:
00:00 Intro
00:12 Main Figures: Property Price, Deposit & Mortgage
01:15 Monthly Figures: Rent/Mortgage/Service Charge/Bills
01:57 Why I Bought this Flat
03:05 Shared Ownership Calculator
04:08 Pros of Shared Ownership
05:14 How I Saved £22k for the Deposit
08:13 How Much it ACTUALLY Cost to Buy This Flat (Reservation Fee, Mortgage Broker Fee, Solicitors and Other Fees)
11:05: Conclusion
Thank you for being so open and transparent, this has really helped motivate me to continue my saving journey!
Congrats on your new flat!! 🎉 Literally going through the process due to complete next week. I’m so happy I came across this video because your costs are so similar to mine and it’s so warming to see someone breakdown everything in a positive manor, especially when so many people are against shared ownership. Wishing you all the best on your journey 🙏🏾
This is awesome to see! Well done !
So proud of you Ela, this is so inspirational.
So kind of you, thank you!! 🥺😊
such a helpful video! congrats girly 🥳
pls make more videos like this 🫶
Congratulations on the purchase of your home. So much detail in this video. If anyone was curious about shared ownership, this is a video to watch 🎉
Thank you for being so transparent!
This is amazing, thanks so much for the breakdown Girl! It's so helpful because I steered away from this when people were telling me it was a bad idea because of the rent element. Will definitely consider it again going forward 😊 So happy for you and glad yourself and your Boyfriend are getting settled into your first home together. Exciting times ahead 💕
Thank you so much girl! 🥰 Ahh true, loads of other people don't like shared ownership because of the mortgage and rent thing, but I think it's a really good option if your goal is to eventually own 100% 🤞 good luck with your flat search!
this popped up on my feed and the second you started speaking i was like “wait… i recognise her o.O”, did a quick scroll through your vids and realised i used to bingeeee your vids when i was in college and preparing to go to uni (back in 2016) 😭 must’ve watched your first semester/uni experience vid with joyce about three times.
just had to say it’s crazy to now see this vid and see how you’ve grown from those freshers vids to now, well done!!
vids like yours kept me motivated and determined to get into uni when i otherwise really couldn’t be bothered to revise so thank you. i’m now working to likewise achieve home ownership soon so looks like you’ve once again become an inspo of mine 😁 all the best x
Shared Ownership is a minefield and a total scam tbh. You need permission (not guaranteed) to rent out SO flats if circumstances change. Also service charges are uncapped and the rent portion goes up in line with RPI +1& (RPI is currently over 9%) every year....and even if you only "own" a portion of it you are liable for 100% of any maintaineance costs. Every time you staircase you need to pay both your own and the Housing Associations fees . When you want to sell it the HA has the final say on valuation and who you can sell it to which narrows your market. You are limited in your remortgaging options with the banks too when it comes to that. Finally interest rates are not coming down anytime soon and as it's Leasehold you do not "own" anything but a longterm arrangement to occupy the place.
PLEASE RESEARCH FULLY BEFORE JUMPING INTO IT
This video is really helpful,thanks for sharing you experiences 💯
Such a joy to see your face!!!! Congratulations on the house must be so so much work and change, keep going 😍💃🏾👏🏽
Thank you so much, that's so kind of you ❤️ Hope you're doing great!!
@@Streetorvintage I am 💗 been watching since I was at uni in 2018 so your any video brightens my soul, appreciating your whole self x
My first time on your channel but congrats on this girl, living in the UK is not easy right now and thanks for the video.
Thank you so much. This was sooo informative. May God Bless you xxx
Congrats, that's an amazing accomplishment.
this is youtube, this is transparency and great advice, thankyou!
It is great to have a place of your own - no doubt. However, as a Lease-Holder, you don't own a single brick of that flat, all u own is contents within it. Also, you're liable for SC (which will increase year on year) for as long as you're going to live there. If you do the maths, at your current rate of 207/pcm, in 10 years time, just the service charge will cost you a staggering 25k 😮. 1 Piece of advice: Avoid/Don't Buy a Flat! (if you can - obvs not always possible) P.S 250/pcm for bills is a very low estimate, given the current energy prices etc.
how 207/pcm for 10yrs adds up to 298k?
that 25,000 over 10 years is used for property management meaning maintenance of the exterior and common interior spaces. even if you buy a freehold, you still have building maintenance costs - whether to replace a roof of an old terraced house, water pipes, mould issues, painting etc.
Amazing achievement, thanks for the breakdown. Would love to see a video about investments with your salary instead of just putting everything in a savings account, which you said you don't recommend x
Thank you girl! ❤️ That's a really good idea, I'll film an investment video next and show exactly how I'm saving/investing nowadays xxx
Thanks for the motivation 😁❤
Great informative video. Obviously people who don't live in London out here critising you for buying a flat and on shared ownership don't understand how hard it is to buy here so mad props to you! Just wondering what zone in London you live
Congrats on getting on the property ladder 👏
Thanks! Proud of us ❤️
Wonderful, thank you 😊
thank you soo much for this video
First off.. Great video! Started watching your credit boosting vid then watched another 5 in a row 😆.. so my question, as you own 25% (once you staircase) how much would you be allowed to rent it out for roughly in the current market and would you be able to rent it out NOW if you needed to without having staircased? Or do you have to pay off the full amount first being able to do that? 😊
I’d love an educational video on shared ownership
Also, do you think there’s a difference between banks for lifetime ISAs? If so a video on that would be great
I'm interested to know how you feel about it all now a year in and with your view on stair-casing. As you know, as the value of the property increases, so will your share, but then so will the amount needed to pay to own more. A lot of people are very very critical of the shared ownership scheme and when it comes to selling it can be a nightmare
Thank you for sharing! I'm currently living in a flatshare whos looking to have my own apartment in London by myself. Do you have any good tips on how to get started?
Congratulations on the property however I was just doing the numbers on this and it doesn't seem to add up because basically your service charge is over 65% of your mortgage at £207 and £309 and your service charge is almost 40% of your rent.
Basically if we do this quick maths and make a few assumptions that your service charge won't go up in 10 years(its will because its unregulated) and your rent won't go up too (but it will as the property value goes up in value the rent will increase)
24k in service chrages
54k in rent
34k in mortgage repayment
which mean you've paid 79k in rent and services (ridiculous )
79k-34k = 45K (you'll never get back EVER )
okay plus your deposit 22k (when you sell)
loss net £23k
I'm sure you're very aware that every time you staircase you pay based on the new value of your property and you also have to pay your solicitor mortgage broker fees again as well as all the secret fees that came the first time again. (so if let say your property goes up 20%) its more expensive to buy and you'll be subjected to the whole how much percent you can buy crap which limits your ability to staircases 100% totally (which doesn't remove you from the service charge )
I guess the good news is that you're splitting it with your boyfriend so at least it's affordable (right now) and when you sell you might have enough money to go on and buying over the house elsewhere probably lord know it will be more expensive then.
These numbers demonstrate that it's not really a good deal(for the long term) and I don't think you should hold it as an investment property
At the same time I know people promote shared ownership as the only way getting on the property ladder but you can see very clearly as a very heavy cost and the only winners are the people who sold the house because one they will get their house back eventually by the long game
for example £207 Service charge per month * infinity (you'll pay till you sell and then someone will pay and so on so forth) * every flat in your apartment block.
sorry if I sound impertinent but the truth
hiya, thank you! You are right in that if I were to only keep my share of 25% forever, it is an absolute rip off. However, my salary has increased by 70% since the time I reserved this flat in 2022. I am able to staircase to 100% right now, however, I am just waiting till the end of the year for the interest rates to go down and then I will be staircasing to 100%.
Once I have staircased to 100%, there will be no rent charges, only mortgage and service charges. Although, yes, the service charge is expensive and will definitely go up every year, that's a cost I do not mind paying as the location of this particular flat is ideal for me and I would rather pay more for this flat in my dream location than less for a flat that's far away from my family.
Also, I plan on living in this flat only for 2-3 years, and then, my partner and I will be buying a home together and renting out this flat. If I were to rent out the flat, I would make a profit as my mortgage+service charge payments monthly will be less than the rent I charge in the future.
I agree that shared ownership is not for everyone and can work out to be a waste of money for most people. However, in my personal situation it is ideal as I can staircase to 100% soon and then rent out the flat for a profit in the future
@@Streetorvintage how are you going to staircase to 100% and rent it out, are you going to staircase to a buy to let type mortgage? i.e. 25%+ deposit. How are you expecting to find 100kish for the buy to let deposit + a deposit for a new family home in 3/4 years?
@@JimmyBob708 Yeah that's what I was thinking. Is it even possible to go straight from a 25% shared to a Buy To Let with 25% deposit? I suppose it is if like you say you have the deposit!
EDIT - the 25% now would be £78,750 to turn it into a Buy to Let plus fees it would be close to £100,000 (not a million miles away) alone, but in two or three years due to the increase in value it will be well north of £100k easy. Then a deposit for a family home, if the flat is £315k then a family home must be £500K in the area, say a £50k 10% deposit plus fees. Probably need £175k minimum to do what has been described I would think.
@@JimmyBob708Shes lost fam 😂😂😂
@@usefulrandom1855 Share ownership doesn't let you rent a house this means you can't go straight to buy let house. You need to deal first with a residential mortgage to get 100% of shares then you swap a residential mortgage to buy to let. If she looks to buy in London house you look at around £500.000 She needs just a 5% deposit which means she needs £25000 add 3k moving and legal works on top you need to have £28000 but she pays stamp duty aswell because this is second house and another house is let to buy if you use stamp duty calculator £500.000 house you pay £27.500 on top yours deposit says in total £55000k then 4 years is equal 48 months that equal £1145.8 If she salary 40k per month she need put almost half monthly incomes to safe that money in 4 years. Plus you never know maybe in 4 years you need a 10% deposit as minimum or maybe rates go even higher
Hiiiii!! Eagerly waiting for your next upload elakiya.. love from Tamil nafu
Hellooo, well done on getting your dream house!🥰
Could you please tell me where it's located in London?
I'm hoping to buy a shared ownership next year in Canada Water (but the prices are not released yet) and im wondering how much that would be. Is yours in zone 2 as well? Shall I expect similar prices?x
Thank you☺
With buying a share- can I work towards owning all of the property with any property or not?
Hi thanks for the very informative video, what is the company name of your housing association, as some are very good and some are very bad?
Shared ownership is the worse way to buy. It seems cheap initially but in the long run.......
well done
i think you missed out the etsy expense tracker link in your description!
Ahh yep thank you, I'm just making the final improvements on the tracker and then will put it up - should be out soon 🤞
What area is your flat located?
Congratulations, I'm in the middle of process to buy a share ownership flat and like you said is a good idea for someone that will increase salary in future
Good luck with yours - How's it going so far? Would you recommend Shared Ownership? Thank you ;)
@@sofinasim6463 I just bought it, yes I recommend it but you need to choose a good area with possibilities of growing 😉 and you should check all details in contract. If you have a good job with possibilities of increase your salary I recommend it if not don't do it, because you will never staircase in future. I bought 55% so is easy staircase in future to 100%.
@@brendagomez1933 Thank you Brenda! Congratulations on your new flat!! :)
A lot of people piss on SO. It's better than fucking renting. You can get so much more with SO than renting. SO is not for ever. It's a start.
Can you buy it if you from another country?
waiting for the pros and cons vid
is there not issues with increasing service charges and limitations to even minor changes that can be done? I have heard 'shared ownership' can be tricky .May be I am wrong. by the way are you Tamil origin? On a different note you have an amazing financial maturity for your age.
If it's not too late since this was almost a year ago, consider buying a regular house rather than staircasing to 100%! I am in the exact same position - started at 28% on £38k, salary has increased and can now afford 100%. I am selling and just had offer accepted on a house instead. Reasons: leasehold sucks, your flat is a newbuild, and will have fallen in value, 100% sale is harder to sell at profit than a share. I am making a small profit on my share, since my overall value has gone down - this would be a BIG loss at 100%.
Thank you so much for sharing this, this is perfect timing as I have been in two minds between selling the flat to buy a house or trying to buy a house and staircase and rent out the flat! Huge congratulations on buying a house, that’s an incredible achievement 👏🏾👏🏾👏🏾 all your points are facts and since moving into the new build, the service charge and leasehold aspect has made me question whether shared ownership was the right thing to do. When you bought your house after selling the flat, were you classed a a first time buyer again and so did not have to pay stamp duty? 🙏🏾
@@Streetorvintage I will have to pay stamp duty, £5,750 on my freehold house but it is worth it to no longer be a long-term tenant (leaseholder) at the mercy of a landlord who can increase your charges at any time for any reason. I did a full market value election for stamp duty on the shared ownership so would not have had to pay when I staircased, either - I bought during the stamp duty 'holiday' in 2021. I'd make a MUCH bigger loss trying to sell it at 100%. This flat is 5 years old and there is a 100% 2 bed like mine who has reduced her price by £30k and it is still sitting on the market for the past 6 months. At 28%, many people could afford a lower share and I had multiple offers at asking price - I'm in the process of selling now with £14,300 profit (you can keep all the profit above the RICS valuation). I'll post a vid about it soon when I get to the other side -- selling shared ownership is an absolute PAIN. Good luck! You seem super smart and it'll work out for the best for you!
Ahh right I see, thank you for letting me know! Yes definitely worth it and better having a freehold house, hoping to follow in your footsteps soon 🙏🏾 I have set up alerts on rightmove so will try and buy a house by end of this year/start of next year I think after saving some more. That’s incredible you made a good profit on your flat too, so good you hadn’t staircased to 100% 👏🏾 huge congratulations again and hope moving into the new house and everything else goes smoothly 😁
I think people on here are out of touch with what we have to go through these days, to buy house for peanuts compared to now is not the same, great achievement and well deserved!
Oooh u said it will be a rental property in 2years u mean u will rent it out after the full term mortgage payment
Is this mortgage only in your own name? Or did you do a combined mortgage with two applicants?
Yep this mortgage is under just my name - our next property will probs be a combined one or under my bf's name
First of all congrats on purchasing your home - it looks beautiful.
I am guessing you bought the apartment alone and your bf now lives with you ?
If so please male sure you have an agreement in place as to what rights he is acquiring by paying half of the costs as you have stated.
Whats staircase?
You can contribute a certain amount e.g. 5% of the property value. And each time you get back that percent. So now she has 25% ownership and the property developer has 75%, if she contributes 5% every year she gains 30%, 35%, 40% etc. Until 100% is hers.
Your video says you bought a flat, and within a few seconds you describe how you haven't bought the flat at all!
would you put 100k down if you had it?
Good question
nope, I would use that as a deposit on a house rather than a flat for sure. I'd invest the remainder
@@Streetorvintage invest in what? whats hot right now?
so you wouldn't 100k down into the house?
Welcome to leasehold nightmare . You are young enough to recover from it
But by the nor
Does your boyfriend pay his fare share? Does that cause any argument?
"I lived with mummy and daddy to save the deposit". Don't even have to watch this video to know this how she did it.
Loool I give my mum a lot of money every month - amount would have been equivalent to the same rent I would pay if I did a house share in greater London with random people
£315,000 is a ridiculous amount and it’s shared ownership? You don’t own this flat unfortunately
Lool she knows she doesn't own it. And yeah I'd agree it's expensive but that's expected for a new build unfortunately.
It’s in London 😅
title is a bit misleading you didnt buy a flat you bought a small percentage of a flat
Chill😊
Thats a lot of money for a flat, and you don't even own it outright.
Why not use that money and invest in multiple properties (houses) outside of London?
Shared ownership is the biggest scam 😂😂😂😂 You are deluded.
Sorry to say but YOU are LOST 😂😂😂