Persimmon won't part exchange on an apartment

GemChiefSaver

Doozergirl wrote: »

They don't part exchange on anythiung they feel to be a bad investment - difficult to sell on. Ex-council have always been on the list, looks like new build apartments are as well in certain areas.

Define 'bad investment' - anyone who dares mention the word 'apartment'??

for starters, my apartment is not a 'new build'. It is not city centre and not specifically aimed at 'young professionals'. 3 of the other residents here are over 50.

C_Mababejive & pinkshoes - suppose it depends on what your priority is when buying a property. I could buy a 3 bed semi within 1/2 mile for around £100k but it would not be on a street i would ever choose to live in.

Well, guess i'll go back to my 'slave box' now!!!

sonastin

The problem with taking an apartment in part-ex, which doesn't apply to houses, is the services charges. If they can't sell the apartment quickly, there is an ongoing liability for the developer. If they can't shift a house, it doesn't cost any more than the financing of the capital.

mark5

5 miles from where I live developers have built a huge development of apartments and seem to be struggling to sell a lot of them. I think they just over estimated what the demand would be in a small city in SW Wales.
Correctly priced houses are selling in the area but the flats dont seem to shift no matter how far the prices fall.

C_Mababejive

neverdespairgirl wrote: »

There are some seriously expensive flats within a mile or so of where I live:

For example, £12 million on the banks of the Thames overlooking St. Paul's:

http://www.primelocation.com/uk-property-for-sale/details/id/BLSA5803534

Indeed...very nice..but we are not comparing like with like.

The developers' cunningly created aspiration is a pied de terre overlooking the Thames,the reality is a cheaply constructed,over priced box on a reclaimed brownfield site.

timmyt

GemChiefSaver wrote: »

Hi!

We have been keeping a close eye on a persimmon development near to us. Today we went to see the show home and get further details on the site plan and the properties available. We were hoping to part exchange our 1 bed apartment, but the Sales Executive on site said that persimmon don't part exchange on apartments. Does anyone know why?

Our apartment was valued at £115k last year, we currently owe £85k on the mortgage and looking to buying a 3/4 bed house for around £200k.

I am really frustrated at the moment, and just wondered if anyone could shed any light or if anyone has had similar experiences?

Thanks for reading

too difficult to sell on. too many of them around.

never buy leasehold, as you don't own a home, you are still renting, and someone actually owns the freehold above you

<sebb>

timmyt wrote: »

too difficult to sell on. too many of them around.

never buy leasehold, as you don't own a home, you are still renting, and someone actually owns the freehold above you

Most people would always choose to own a house over a flat, but sadly the reality is that not everyone can afford to.

Person_one

<sebb> wrote: »

Most people would always choose to own a house over a flat, but sadly the reality is that not everyone can afford to.

I wouldn't, I quite like the compromises of a leasehold flat. I can decorate my own way and no one can evict me as long as I pay the mortgage but I don't have to worry about the roof or the drains or the pointing!

Doozergirl

Person_one wrote: »

I wouldn't, I quite like the compromises of a leasehold flat. I can decorate my own way and no one can evict me as long as I pay the mortgage but I don't have to worry about the roof or the drains or the pointing!

No, but you do have to worry about the massively inflated bill.

Doozergirl

GemChiefSaver wrote: »

Define 'bad investment' - anyone who dares mention the word 'apartment'??

for starters, my apartment is not a 'new build'. It is not city centre and not specifically aimed at 'young professionals'. 3 of the other residents here are over 50.

C_Mababejive & pinkshoes - suppose it depends on what your priority is when buying a property. I could buy a 3 bed semi within 1/2 mile for around £100k but it would not be on a street i would ever choose to live in.

Well, guess i'll go back to my 'slave box' now!!!

The fact is that Persimmon won't take yours in part-exchange. If you wanted them to take it then I'd refrain from calling it an 'apartment'. The only people that call them apartments are EAs and people sucked in by the marketing.

Perhaps it's quite simply the fact that it is a leasehold property and therefore more complicated and unpredictable with service charges and cost of upcoming work and they don't want the risk of that either.

Either way, it's a risk for them. If the price of your one bed 'apartment' is comparable to that of a 3 bed house, It most definitely is a risk. There is not a wide market for flats that cost the same as house. If it's that easy to sell on again, then you should be selling it yourself as it's certainly not MSE to part-ex.

terrierlady

developers dont p/x they try to do a back to back sale with flats/apartments the previous poster has explained leasehold is problem,all developers have rules on part exchange could be age of the property, location, price you want all equate to the part exchange price which is at a rough guide 92% of open market price.most developers require you to be trading upwards of some 25-30% so like for like is not possible either or downsizing and receiving cash back.