Severe retirement flat selling problem.

Trusting_Fool

Inhereted a reirement flat 4 years ago, valued £147,000, no sale 2years ago £120,00, December..offers over £96.

OK...lets rent, well the flats not in my name, they want arrears on maintenance charge,.. £3k, plus 1% of property value..£1k before it can be transfered.

I attempted to obtain a charge or remortgage, minimum £25k if I got a tenant, ...well thats another issue.

Anyway thats the background.....Thursday I get a call from my executor saying I have a week to think about Peverells by back scheme, whereupon...

£30k now, possibly another £40k when its sold.


How discusting is this...?

Value ...2008..£147

projected.......£70k..maybe.

So what do I do..?


Please, this is affecting my health.

withabix

Peverells...say no more!

However, we are in a recession and despite how much the elderly may want to move into these places, they can't sell their own houses to start with.

My mum is in a development in Lytham St Annes (not Peveralls!), but that has only sold about 70% in 3 years since it opened.

Trusting_Fool

Yeah duly noted, and took the long term view of renting. Im being forced to do this because of outstanding charges, which I can pay off when I well ...you read my quandry.

silvercar

Is there any other inheritance that you could use to pay off the arrears? Or an unsecured loan?

Given that you have inherited, is there anything stopping you renting it without the name transfer?

Trusting_Fool

My partner was made bankrupt before I met her, unfortunately.

Never enough money, it was paid from estate for two years, then, what with every thing..


Renting see..thanks, some one gets it. That was my plan, but it needs to be in my name and its stalemate...

Peverrells wont put it in my name untill I pay them £4000...

PasturesNew

I noticed two retirement flats round my way have dropped in asking price today, bringing them both down to half their asking price last August.

How many other retirement properties are in the area? At what price? How long have they been for sale for? How many times have their prices dropped?

For renting, you could put it on cheap, stating that you want a year's rent up front.

Trusting_Fool

PasturesNew wrote: »

I noticed two retirement flats round my way have dropped in asking price today, bringing them both down to half their asking price last August.

How many other retirement properties are in the area? At what price? How long have they been for sale for? How many times have their prices dropped?

For renting, you could put it on cheap, stating that you want a year's rent up front.

Really ..? Thats horrible, are you sure, 50% in a year..?

Im 100 miles away so dont know much about prices.

Had intended to take a more long term view and sell when prices were more bouyant.

PasturesNew

Trusting_Fool wrote: »

Really ..? Thats horrible, are you sure, 50% in a year..?

Im 100 miles away so dont know much about prices.

Had intended to take a more long term view and sell when prices were more bouyant.

I've no idea where you are, but to prove what I said is true ... here are the two:

August 2010 £99,950: http://www.rightmove.co.uk/property-for-sale/property-30943856.html

Feb 2011 £79,950: http://www.rightmove.co.uk/property-for-sale/property-32681357.html

Today both reduced to OIEO £50k.

Trusting_Fool

Yeeesshhh, speachless,

Thanks for the link.

LisbonLaura

The pain of the correction (or recovery) to sane prices after the liar-loan, irresponsible, generation-wrecking, abundant wholesale money market years is really starting to show.
TF, it might be wise to get out now rather than be chasing the market down for years to come.

dopester

"Discusting?" The value has fallen. Probably could have gotten out if cutting it to an attractive market price four years ago, instead of so close to the value you believed it was worth.

So you didn't want to pay 1% to the complex to transfer it into your name? You wanted just one commission at sale to go through to a buyer. That's understandable. However now 4 years down the line, £3K maintenance charges racked up.

I'd have lots of questions to ask about the buy back scheme. What happens if they choose to rent it for 10-15+ years? That's not a sale is it, so no £40K to you as per the agreement. You'd get nothing until sold (on the surface of things). What if company goes into liquidation? (I know Peverel already undergoing some big changes) Can you be sure the agreement doesn't go up in smoke with it? Lots of questions like that.

Maybe you should try and hold them off a bit longer and sell at a bargain price, or one that at least attracts attention of the market, the current market, as it is today? I don't know what asking price that might be.

Check this one bed retirement apartment in posh Alderley Edge. If they'd put it up for £85K/£79/£75K in May 2008 they'd have probably sold it.

07 February 2008: £114,000
22 March 2011: Guide Price £59,000

http://www.rightmove.co.uk/property-for-sale/property-5778309.html

Many people who were planning to go into retirement apartments are also recoiling from having to sell their houses at lower prices that they were told they were worth around peak. So perhaps fewer people in the market compared to boom times for retirement apartments? Also some criticism in newspapers of the charges some retirement apartment providers charge. Tough market.