Severe retirement flat selling problem.

Trusting_Fool

ILW wrote: »

Can you not find out what others have sold for recently?
Bear in mind that retirement homes with their limitations and often very high service charges, are different to the general housing market.

Others are on for £124, I bed with access to patio, another 1 bed for £115k, cant remember the spec, my fathers is 1 bed 2nd floor with no balcony.

BitterAndTwisted

No, not what others are being offered for sale at. What other properties have actually sold for in the last three months.

Trusting_Fool

BitterAndTwisted wrote: »

No, not what others are being offered for sale at. What other properties have actually sold for in the last three months.

Sorry, er none I believe,Idont know.. Express estate agency bought along a search from the Land Registry which stated 4 had sold in the previous 2 years nothing spectacularly different to my advised valuation.

Sorry last 3 months, none I would guess, better try to find that Land Registry document again, I think Ill phone them tomorrow.

Trusting_Fool

dopester wrote: »

What is it on for now? Offers over £96,000 ? No withdrawn from market because I had a tenent, who left.



I'm just wanting you to get a better deal than £30K now, and £40K at some undefined point in the future, in which because the property is still in Peverel's name, you can't be sure they won't just rent it out themselves for decades, or be taken over by another company, or some other event, and contract not enforceable. Dead on the button,..

And asking you to weigh up the issues with renting it out. Any idea of the potential rental value? Agent's fees if using an agent. What you are likely to come out with after service fees, periods of void ect?

£475 realistic rental,£175 service charge PLUS whatever Peverels add on on top in yet another covenant clause. 7% to estate agent who will take care of all maintenance issues internally

Also it occurred to me, when was the last time you visited the retirement apartment? Do you have a key and access now? You're having trouble in accepting the value might be considerably less than what your father bought it for. You have to come to terms with that.

I thought I had by dropping 30% asking price.

Thats way more than the national average, you dont see headlines ..house prices drop 50% . Lowering it to £75K asking price, and were you to get it, is better than the deal you're being offered at by retirement apartment management company, imo.

Undoubtably, thanks for your concern..

Thought the highlighted quote would be broken up with my replies, my reply is in with your bold. Sorry for confusion.

dancingfairy

O.k so it seems you a) sell it for 75k and walk away with the money (minus the 3-4k you owe in fees) and spend it on something/invest it and remember your family.
b) pay 4k and rent it out for how long? how much are you realistically likely to make in a year - what's the rental like? is it better than the selling market?
c) get some legal advice on where you stand with the transfer of the names and also advice re where you stand with the bills not being paid - although this could open up family rifts and cause more problems.

It's likely house prices will recover but how long will they take to recover? will you be able to let the flat out? will you have maintenacy issues/voids/ managing agents problems to deal with?
Can you raise 4k? a loan/overdraft/cards etc? can you afford the repayments? can you come to a deal with Peverall?
If you can't afford to pay the 4k and take the long view perhaps cash in hand would be better?
Sadly your father did what he though best at the time and you are now stuck in a very awkward position.
df

Bandhia

Trusting_Fool wrote: »

Sorry, er none I believe,Idont know.. Express estate agency bought along a search from the Land Registry which stated 4 had sold in the previous 2 years nothing spectacularly different to my advised valuation.

Sorry last 3 months, none I would guess, better try to find that Land Registry document again, I think Ill phone them tomorrow.

You could save yourself a phone call and have a look at Rightmove's House Prices section - enter the postcode of the flat in question, press enter, then set the search filter "Sold In" to "All Years" and press "Find House Prices."

http://www.rightmove.co.uk/house-prices.html

It does take a while for sales to show up there, but I have seen some from December 2010 and even Jan 2011, so it's worth checking out.

As for the reduction in price - not really surprising, I'm afraid. I'm looking at houses in my area selling for around 40% off their peak (2007/8) prices...one just round the corner from me actually managed a clean 50% off its 2006 price when it sold back in December of last year.

This is when they do sell, mind you - there are some houses round my way that have been up for sale for 2 years+ (no, I'm not kidding.) The difference between the ones that sell, and the ones that don't? The ones that do sell have been realistically priced - i.e; massively reduced.

My advice, for what it's worth - if you're really keen on selling it soon, you need to price it VERY keenly, especially if similar flats are for sale nearby.

Good luck, whatever you decide

Trusting_Fool

Thanks for the link, Ill have a look later.

Jan 2011...200k...probably 2bed

Sep 10 180k.........."

Last one bed feb 2010.. 136k

Yeah, Ill be onto Peverels oin the morning. To be fair to them, they are always very sympathetic over the phone.

Solicitors likewise.

I I got an offer of £75, 80k then Id probably bite their hand off, but 30, then a speculative promise of maybe 40..no way.

Thanks to everyone who has taken the time to reply to my tribulations...

Running_Horse

My wife's grandparents paid £180,000 for their retirement flat.

Today I looked on Rightmove and saw them offered at £125,000.

Luckily, no one is sitting waiting for their inheritance, so nobody worries about the value.

It's only money.

PasturesNew

When it's my turn, I plan to rent a retirement flat ... then blow all my money before I go ga-ga.

LisbonLaura

HAMISH_MCTAVISH wrote: »

You have an asset.
At the moment, the asset is worth less than it was 4 years ago, at some time in the future it will almost certainly be worth more.

In nominal terms if TF waits long enough, could be so HM.

In real terms almost no chance.

'Asset' returning to a sustainable price level in GBP, but GBP depreciating.

Rent it out (do you have the stomach for that?) & tough it out.
Or dump it; but do you know where to put the proceeds for best protection?