any option we have ?

labbong

I am struggling to sell my flat (got the asking price offered few times but sale never happened due to one reason or another, nothing wrong with property though). Now we are running out of time as we are emigrating to Australia on 1st Feb,2015 and don't have time for viewing and onward processes.

Flat is freehold and worth about £160 in very demanding area from rental point of view.
1. I am planning to releases equity from the flat and get buy to let mortgage on it but not sure if any bank will give me mortgage especially when I have already resigned from my job and running into notice period.

2. Rent the flat but will be paying Aussie tax on it so new return will be quite less plus I wanted to take out money from flat to facilitate any purchase in Sydney.

Can someone think of any option for us please ?

Guest101

labbong wrote: »

I am struggling to sell my flat (got the asking price offered few times but sale never happened due to one reason or another, nothing wrong with property though). Now we are running out of time as we are emigrating to Australia on 1st Feb,2015 and don't have time for viewing and onward processes.

Flat is freehold and worth about £160 in very demanding area from rental point of view.
1. I am planning to releases equity from the flat and get buy to let mortgage on it but not sure if any bank will give me mortgage especially when I have already resigned from my job and running into notice period.

2. Rent the flat but will be paying Aussie tax on it so new return will be quite less plus I wanted to take out money from flat to facilitate any purchase in Sydney.

Can someone think of any option for us please ?

Nothing to stop u selling whilst abroad, just get a solicitor before u go. Would be good to have a friend or family member pick up post, especially bills, once a week.

I don't know about Australia, but fairly sure your primary tax responsibilty would be to the uk for any rent payments.

DTDfanBoy

Drop your asking price or stick it in an auction

Suarez

I think you will find most people will not be able to get a mortgage for a freehold flat. Some of the mortgage advisers will be able to give better advice but that's what we found when searching for flats.

car0line123

Suarez wrote: »

I think you will find most people will not be able to get a mortgage for a freehold flat.

Apologies for barging in, but I don't understand that? Why not?
Freehold flat/ share of freehold flat, aren't they the same thing?

antrobus

Turning to the Council for Mortgage Lenders Handbook (CML Handbook), most lenders including well known high street lenders such as Abbey National, Nationwide and Bank of Scotland will generally not lend on a proper freehold flat.


Why lenders do not wish to lend on freehold flats
http://www.fridaysmove.com/why-lenders-do-not-wish-lend-freehold-flats/13225

EverGreen_2

antrobus wrote: »

Turning to the Council for Mortgage Lenders Handbook (CML Handbook), most lenders including well known high street lenders such as Abbey National, Nationwide and Bank of Scotland will generally not lend on a proper freehold flat.


Why lenders do not wish to lend on freehold flats
http://www.fridaysmove.com/why-lenders-do-not-wish-lend-freehold-flats/13225

Wow, I learn every day from this great forum. I feel confused still.
I have been reading too many threads talking about leasehold and freehold. Some members were complaining from the leasehold and seeking direction on how to buy the leasehold. Some were warned not to buy flats with leasehold. Where is the truth?

jonathanrolande

The freehold aspect is tricky unless you mean a share of freehold.

An auction is one route or a quick sale company (vested interest alert…I work for one!) who will buy very quickly but at a reduced rate.

If £160,000 is right, expect an offer around £135,000 but you won’t be liable for any fees such as agents/solicitors etc. It works well for some people but not all.

car0line123

ah ok, sounds like real freehold flats are in fact extremely rare. What's described as "freehold flats" by our local EA are in fact a "share of freehold", so there is a lease, but each owner has a share of it.

In practice there is no ground rent to pay, and they can extend the lease at no cost (apart from legal), if the lease is not already around the 999 years length...

it is very confusing for people like me!

labbong

Flat is not freehold but leasehold with 115 years remaining. my Apologies.