Can't see a way forward

wilsonrp

My wife owns a flat that we have been trying to sell for some time so we can buy a house.

It was never really suitable for both of us and the neighbours who are also the freeholders are difficult.

The flat has a covenant on that stipulates that it cannot be sublet without permission - and you've guessed it - the freeholder won't give us permission.

This is because the freeholder knows we are struggling to sell primarily due to lack parking and is using this as leverage to try and buy the flat for a somewhat embarassing sum.

We've managed to get temporary reprive from this living situation by putting my wifes sister in the flat (as the covenant doesnt apply to family members). We are renting elsewhere.

We are intending to start a family so need to try and find a way to move forward with the minimum financial impact.

We can afford to purchase a house without the sale of the flat (as there is no equity there) but obviously this would be risky if the flat became empty as we have to move back in or pay 2 mortgages.

Have seen the companies online offering 7 day purchases of your home etc but by my calcs we would lose at least 20k down.

I can't see a viable way forward right now so would be grateful for any advice on offer.

Many thanks

GAH

Firstly do not sell to one of those companies you have mentioned, you certainly won't get a fair price.

How long have you had the property on for?

SOunds like you need to freshen things up, new agent and dropping it to a realisitc price to sell.

Its obv going to be no good to an investor so needs to be targeted at the right buyers.

Alternatively you could put it up for auction, but the majority here are invesotrs.

G_M

1) ignore the freeholder permission requirement, and let out the property. Will they really go to the time and expense of a court case to obtain an injunction against you? Plus many leases say "not to be unreasonably with held"... does yours? Even if not, you could use this as a defence if it did go to court

2) start making life intolerable for them so they want you to sell/move. A few late parties? Are the neighbours above/below you? If below, remove the carpets and take up earobics.

3) Offer to sell to them. Wait till they've paid out for mortgage application fee, solicitors fees, survey/searches etc, then change your mind/up the price

4) Go through the lease with a fine toothcomb and find examples of how the freeholders are failing to abide by the lease. Write letters demanding they..... and...... and.....

5) Sorry - can't think of any other ways to fight dirty!

Conrad

The reason any property struggles to sell is because it's price is not in line with what the property offers. Get the price right and alighned to the features it offers, and you'll have a buyer.

It's like saying my car wont sell because it deosn't have electric windows - it will sell, but you need to sell it for the price that cars without electric windows sell for.

Otherwise stay put, pay down the mortgage and move later.

bonusprize

g_m wrote: »

1) ignore the freeholder permission requirement, and let out the property. Will they really go to the time and expense of a court case to obtain an injunction against you? Plus many leases say "not to be unreasonably with held"... Does yours? Even if not, you could use this as a defence if it did go to court

2) start making life intolerable for them so they want you to sell/move. A few late parties? Are the neighbours above/below you? If below, remove the carpets and take up earobics.

3) offer to sell to them. Wait till they've paid out for mortgage application fee, solicitors fees, survey/searches etc, then change your mind/up the price

4) go through the lease with a fine toothcomb and find examples of how the freeholders are failing to abide by the lease. Write letters demanding they..... And...... And.....

5) sorry - can't think of any other ways to fight dirty!

^^^ brilliant!!! ^^^

tbs624

Have a chat with someone at http://www.lease-advice.org

As G_M says consent should not be unreasonably withheld. It sounds pretty unreasonable to me for a FH to withhold consent especially if the end result is that they can get the property at a knock down price.

Have to say that the mean streak in me rather loves G_Ms no 3. I'd go with No 4 too.

G_M - "fatfinger syndrome" strikes - "earobics" helps kids with learning difficulties. I presume you mean the jump around stuff usually undertaken in hideous lycra clothing ie "aerobics" Repetitive Zumba with those rattly things can be good too

Seriously though, I'd be wary of the noisier suggestions as if the FHer makes formal complaints to the EHO etc then these will of course have to be declared on the SPIF, flagging up that there is a potential neighbour problem.

OP - not everyone needs parking space slap bang outside. Can you give the property some sort of wow factor, and/or highlight good public transport links (if any?) Or could you research private garages to let/buy nearby? A friend actually bought a garage near his property and said that he more than recouped his costs via the eventual selling price of the two.

wilsonrp

Guys,

Thanks for the advice so far, and the humour.

The flat has been off/on the market for a couple of years now and I'm 99.9% certain we would have sold it 20x with parking due to the feedback we've had on viewings.

It's also in a highly desireable road within it's postcode and seems to rank very favourably against what else is available. The decor etc is modern but there are probably a couple of improvements we can make.... however you just lose the will after a while. Particularly when the FH controlled exterior is a mess.

I also know about the normal lease wording 'consent should not be unreasonably withheld' and I've been told this covenant is different although I confess I have not actually seen it so this will be something for me to go and investigate.

Feel free to keep it coming....If nothing else at least I'll laugh

hazyjo

Can we see a link? How many years left on lease? What are the S/C costs like? Is there any parking with it at all? Double yellows/no parking all around? Main road?

Jx

GDB2222

wilsonrp wrote: »

Guys,

Thanks for the advice so far, and the humour.

The flat has been off/on the market for a couple of years now and I'm 99.9% certain we would have sold it 20x with parking due to the feedback we've had on viewings.

It's also in a highly desireable road within it's postcode and seems to rank very favourably against what else is available. The decor etc is modern but there are probably a couple of improvements we can make.... however you just lose the will after a while. Particularly when the FH controlled exterior is a mess.

I also know about the normal lease wording 'consent should not be unreasonably withheld' and I've been told this covenant is different although I confess I have not actually seen it so this will be something for me to go and investigate.

Feel free to keep it coming....If nothing else at least I'll laugh

I think that you should consult a solicitor about the consent to let. What other posters are telling you, and this is my understanding also, is that consent cannot be unreasonably withheld even where the lease is silent on that point. It is often stated in the lease, but that is intended as a reminder for the people reading it, and perhaps to make assurance doubly sure.

irishcol

I find it hard to believe that a flat is not selling purely down to the lack of parking. A significant number of people don't drive, eithe rbecause they can't, don't want to or can't afford to. If the property is reasonably close to public transport, then it will sell IF it's priced correctly.

As hazyjo says, if you can provide a link, then we can advise further on suggested marketing strategies etc.

I suggest you forget about the neighbour for now. It's a bit of a red herring. If you have a mortgage (which it sounds like you do), then you probably can't let it out anyway without changing the mortgage and paying a higher rate. It's also unlikely you're in a financial position to get a second mortgage, if there's no equity in the current house.

So, focus all your energy into selling the flat.

BitterAndTwisted

It's the tatty exterior that's deterring viewers and not the lack of parking. Not everyone has a vehicle or always needs it to be parked directly outside off the street.

My advice would be to sell it for whatever you can get for it and cover any negative equity from savings and then start again. Property-prices are unlikely to be going anywhere upwards soon. If this relative is likely to be wanting to rent for some time I'd be tempted to sit tight if the rent covers the mortgage, but with a leasehold property every year that passes means the flat is worth less and less and the more expensive extending said lease becomes. The price of extending the lease would be in the hands of these unfavourable freeholders as well.

I wonder what price they would agree to purchasse it from you is?