Advice on problems related to buying flat in 49yr old chinese walk up

Posted by jlc (202 days ago)

Am interested in buying a specific flat in Sheung Wan-however the building is 49yrs old...(lease is until 2063). I went to HSBC and they point blank said they do not offer mortgages on buildings of this age due to problems/resale value etc...(flat asking price is 2.9mill they value property at 1.9mill!!) I am aware other banks will offer a mortgage as long as i can put down sufficient cash. However, after my hsbc 'chat' i am now a little cautious that maybe buying into such an old building would not be so wise. Any advice would be much appreciated. Are there any specifics i need to look into? I intend to buy to live in, at least for a few years but, as with so many, i hope this purchase to be a future investment.

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Posted by walkup (199 days ago)

The first call is your own assessment of the property and the overall quality of the building and whether it is 'special' enough for you to continue with the purchase. If it is, then check with another bank. Re valuation it is not unusual for there to be some distance between the asking price and the bank valuation and 2.9->1.9 Yes that's how it can be, but HSBC is often more 'cautious' than other banks.