most tax-efficient way for grandparents to move

jpowell79

agrinnall wrote: »

As Clapton says, reduce the price so that the flat sells and then you don't have to go through all this. You say you think the valuation is already reasonable, but as you aren't a potential buyer your view is of little importance, the only view that counts is that of the people who might want to buy it, and clearly they think it's too expensive.

The problem is if they take any less, then they can't really afford to buy in the area that they want to move to.... £230,000 is already at the low-end of the scale in Upminister, so if they sold at say £200,000 they won't be any better off.

jpowell79

...plus surely people would be putting in lower offers if they felt the price was too high?

Someone did offer £220,000 in Christmas, which my grandparents reluctantly agreed, but the guy couldn't get a mortgage so it fell through.

Savvy_Sue

jpowell79 wrote: »

In terms of property locations. The inherited 2-bed flat is about 2 minutes away from the Elephant and Castle (not the nicest area in the world, but excellent transport links and is getting ready for a huge renovation project over the next 5 years) hence the flat value is quite high.

I'd have thought that was a prime site for the Olympics though: what are the transport links like?

Although maybe it's the Olympics putting people off ...

jpowell79 wrote: »

If they further reduce the property, it may help with the sale, but I think the value is already reasonable.

A property is only worth what someone is prepared to pay for it. There's a new build down the road (on the site previously occupied by public conveniences so we call it 'the toilet house') which had an open day last year, followed by signs all round inviting 'best offers by ...' Presumably the vendor's idea of a best offer wasn't the same as potential buyers, because those signs soon changed to 'for sale' - and I've seen no interest at all!!!

agrinnall wrote: »

As Clapton says, reduce the price so that the flat sells and then you don't have to go through all this. You say you think the valuation is already reasonable, but as you aren't a potential buyer your view is of little importance, the only view that counts is that of the people who might want to buy it, and clearly they think it's too expensive.

Harsh but true.

jpowell79 wrote: »

The problem is if they take any less, then they can't really afford to buy in the area that they want to move to.... £230,000 is already at the low-end of the scale in Upminister, so if they sold at say £200,000 they won't be any better off.

Would they be better off if they were buying just for themselves, rather than looking for somewhere you could live too?

As for being sure people would make a lower offer if they thought it was overpriced, then I'd say (from someone who hasn't done a lot of house buying!) that maybe they think it's SO overpriced that what they'd offer wouldn't be considered. Or maybe the agent is putting them off making lower offers. Or maybe there's some flaw with the property, which could possibly be improved.

Is it worth changing agents? Discussing a changed strategy?

jpowell79

Savvy_Sue wrote: »

I'd have thought that was a prime site for the Olympics though: what are the transport links like?

The transport links are excellent. Elephant and Castle Tube station sits on both the Bakerloo Line (Waterloo, Charing Cross, Oxford Circus) and the Northern Line (London Bridge, Bank, Kings Cross), plus there is the Rail Station (15 minutes to St Pancras for EuroStar) and buses that go to pretty much everywhere.

According to the TFL website, it takes 21 minutes to get from Elephant and Castle to Stratford, so not a million miles away.

Savvy_Sue wrote: »

A property is only worth what someone is prepared to pay for it.

I agree with this, but it makes no sense to take a silly offer. The flat was valued at something like £217,000 before it was renovated (brand new modern kitchen and bathroom units replaced with new tiles) and they spent well over £15,000 doing this to help with the sale, so accepting £220,000 really is as low as they will go.

If you look around the elephant and castle and find a 2-bed flat that is less than a 5 minute walk from the tube and rail station, that's less than £220,000, I would love to see it! If you do find one, its probably in need of a major renovation!

Savvy_Sue wrote: »

Would they be better off if they were buying just for themselves, rather than looking for somewhere you could live too?

Well they wanted an extra bedroom as we have a big family, so its nice for them to have a spare room if people wanted to stay over in the future, so its not just for my benefit!

Savvy_Sue wrote: »

Is it worth changing agents? Discussing a changed strategy?

This may be a valid point. I wasn't overly impressed with the photographs they took of the property. I don't think they really really do it justice, especially the kitchen. They went with KFH as they were told they were very good, but I am not so sure.

getmore4less

jpowell79 wrote: »

The problem is if they take any less, then they can't really afford to buy in the area that they want to move to.... £230,000 is already at the low-end of the scale in Upminister, so if they sold at say £200,000 they won't be any better off.

Untill it is sold they can't afford anything in the new area.
Untill it sell they can't know what they can afford in the new area.

If you go with the plan and they eventualy sell for less what happens then?

What is this costing to sit empty, council tax, heating etc.

Could you move in till it sells.