Property Developer Wants Our Flat - Help Please

chelskigirl123

Hi Guys and Gals

I could really do with some advice, its a bit of a long story but will try and keep it brief.

We live in a two bed flat which is in the heart of a heavy area of development of "luxury apartments". Walking distance to the station which is only 25 mins from Waterloo and pivotal to train travel to most of the country.

The block consists of 2 shop premises and 4 flats (two on two). Both of the shop premises are owned by the same person who runs a business out of one of them and he also owns two of the flats which he rents out. He has been slowly buying up the block over the years probably with a view to retiring after selling to a developer. There is also a drive down the side with parking for 6 cars at the rear. the other two flats are owned bu us and one other independant owner.

I bump into him occasionally and he has cassualy asked whether we want to sell him the flat and he actually has another property that we were very interested in but he is a bit of a shark and is only interested in a deal that is best for him rather than one that works for all of us.

On Friday we received a letter from a local Quantity Surveyor asking if we would be interested in selling the lease of the flat to their client who "has extensive funding available for such a purchase" with no fees to us. a similar letter has been sent to the other independant flat owner.

WE know that they are not working on behalf of the other business man so this is obviously a property developer who is looking to buy up the whole block.

We don't really need to move but would love to as we have a 5 year old and would love a garden and an extra bedroom for the possibilities of extending the family but we are just not in a position financially to do this now or in the forseeable future and not being young parents time is running out.

I guess my question is does anyone know how Property Developers work and would it be feasible for us to say exactly what we want on the property front. We are not greedy by any means but would like to know where we stand?

These people are shrewd business men and we are just a nice family loooking for somewhere better.

any advice or shared experiences would be useful.

Many thanks

Chelskigirl

Doozergirl

I don't think they'll be offering you anywhere else to live, just paying your legal fees by the sound of it.

If you do consider selling, you must have your flat valued by three estate agents and work out what it is worth on the open market before you even consider an offer. If there are two parties interested, then I seriously suggest approaching both of them and instigate a bidding war between them.

Once you have a firm offer, then you can visit an independent mortgage broker to see what you can afford to spend on your next property.

Whatever you do, do not agree to exchange and complete on the same day if they ask you to. Your solicitor will advise against it anyway but a property developer should have no need to do this.

never_enough

Agree with doozergirl. Work out things for you, your finances are the most important. Work out where you want to go, what you can afford, factor in removal costs, fees etc. Saving EA fees is a bonus, but not if they're going to offer less than market value. Also keep an ear open to find out if the other flat is sold. It could put you in a better bargaining position, but ultimately they are in business. Your interests are probably not high on their agenda!

clutton_2

have a l ook on your local council planning website to see if anyone has applied for planning permission to build on this site or to redevelope it. if they have (you should have been notified, but this sometimes slipes thru the nett) you can then work out how large a development it will be, and price your asking price accordingly.

densol_2

Sounds like they want your flat more than you want to sell. This would be even more so if the other flat owner agrees to sell leaving just you as the one they have to negotiate with. As said above get prices on your flat, but the flat may be worth more to them than just the market value.

You need to pitch it right- too greedy and they may tell you to get lost- too cheap and you may be left wondering could you have got more.

Sounds like you are in a win win situation - keep that in mind and negotiate like a professional - Good luck !!

chelskigirl123

Hi

thanks for your emails. Man coming on Weds - any more advice?

freebo_2

Doozergirl wrote:

Whatever you do, do not agree to exchange and complete on the same day if they ask you to. Your solicitor will advise against it anyway but a property developer should have no need to do this.

Very good advice and I totally agree, if you agree to exchange & complete on the same day there is a good chance that the developer will try to drop your price at the last minute, knowing that you are already committed to your new property and quite possibly fully packed up too. Please have a MINIMUM of 2 weeks between exchange and completion.

mustrum_ridcully

There was a Human Rights act case a few weeks ago where some woman was being forced to sell (compulsory purchase order) for a redevelopment, she got the CPO overturned. More details at: http://news.bbc.co.uk/1/hi/england/merseyside/5384472.stm

Basically it'll be very difficult to force you out.

So I'd guess you're in a very good position when it comes to bargaining, if I were you I'd get as much money as you possibly can. If the development is going to be a build them cheap sell them for a lot 'luxury' flats then ask the price not of what your flat is worth but what one of these luxury flats is worth.

Doozergirl

What 'man' is coming on Wednesday?

Please post back with what happens too and we'll try to guide you through

Welcome to MSE by the way. :wave:

alzeebub

Some good solid advice already posted here, you gotta love this site

It sounds like you're in a great position as you can hold up whatever developement plans the developer has. I know you said you're not greedy but this is a golden opportunity to sell your property for more than it's currently worth. Bear in mind that the developer will quite likely make an obscene profit on the whole job, why not take your share!

chelskigirl123

"What 'man' is coming on Wednesday?"

The Director of the Chartered Surveyors who sent us the letter to discuss what is on offer from his client.

We definitely won't sell ourselves short as we won't move into somewhere the same size for teh sake of it as it's too much aggro.

Thanks for all your advice, will let you know what he says.