Selling to a neighbour.......

EKAndrew

Hi All,

I'm looking for some advice..............here's the story!!!

I currently live in a ground floor 2 bed flat - I need to sell this as our family has outgrown the space.

There is an "older" lady who lives on the top (2nd) floor who has problems with her knees and I know she definitely would prefer a ground floor flat. We are very fortunate that everyone in our block gets on and we are a friendly bunch.

Ideally, I would like to sell my flat to her (privately - to save on estate agent fees). My flat is mortgaged. I presume her flat is owned outright.

If she was to sell her flat to buy mine..............how would this work???

I understand that she would have estate agents fees etc and I dont think its fair that she would need to take the hit, when I would be selling to her privately. I would like to do everything possible to maintain a good relationship and to make sure things are as fair as possible.

As mentioned earlier, I have a mortgage which is roughly around what the current market value is. I would need her to pay this amount, so that I can clear my mortgage. (Obviously I would like to make a profit, but most importantly I would like to end up without negative equity)

Her flat has a bigger 2nd bedroom than mine, however my flat is very much more modern that what she has.

How do we go about this? to make sure no one gains more than the other and no one loses more than the other???

Ultimately, her flat must go up for sale first and sell before she is in a position to purchase from me. (I would be more than willing to be very flexible with dates)

We live in Scotland if it makes any difference!

I hope I have made this as clear as possible!

Thanks in advance for any advice / assistance you can provide!!!

googler

EKAndrew wrote: »

If she was to sell her flat to buy mine..............how would this work???

Assuming you're moving somewhere else, then she should put hers up for sale, once she has an offer or agreed sale on hers, the two of you agree the transfer of yours, and you go looking for somewhere else.

I understand that she would have estate agents fees etc and I dont think its fair that she would need to take the hit, when I would be selling to her privately.

I don't see why you should pay some or all of her EA fees, when she'd be in the same situation whether she bought from you or from someone else.


As mentioned earlier, I have a mortgage which is roughly around what the current market value is. I would need her to pay this amount, so that I can clear my mortgage. (Obviously I would like to make a profit, but most importantly I would like to end up without negative equity)

You need to get a surveyor's valuation on your property, and use this as the basis for the selling price.

How do we go about this? to make sure no one gains more than the other and no one loses more than the other???

She'll get whatever the public will pay for hers. Armed with this and the surveyors valuation for yours, the two of you have to decide what she'll pay you. You then need to decide what you want, or can, move to with this amount. You can try batting figures around in advance, but if she can't achieve the figure you've assumed for her flat, all the following figures have to change.

Ultimately, her flat must go up for sale first and sell before she is in a position to purchase from me. (I would be more than willing to be very flexible with dates)

We live in Scotland if it makes any difference!

She'll need a Home Report for selling hers to the general public. You won't need one if you sell privately to her, without any marketing.

Apart from this, she'll need an EA or Solicitor/EA to market hers and act on her behalf for the conveyancing. You'll just need a Solicitor for the conveyancing between the two of you, and for offers and conveyancing on your onward purchase.

Does this help?