Help!!!!!! Received low offer

HappyMJ

What could it achieve on the rental market?

I'd wait for a better offer.

I'd even pull it off the market and just let it out myself and wait a few years before considering selling. You can switch the mortgage to a BTL mortgage.

£65k maybe £400 a month is a 7.4% gross return which is very good. There's even properties for rent at £450 a month which would make it a 8.3% gross return.

I'd seriously consider doing that.

moneyistooshorttomention

jonnyspendthrift wrote: »

We so have, paid £80k spent about 8k on it. I'm not sure if she is trying to get us to accept less, as she is, ' thinking about it over the weekend' but really wants it, it's a guessing and waiting game!! estate agent said they may reduce their fee if this investor offers £64k..

Two things:

- this being an investor, rather than a home-owner, that is "thinking about this over the weekend" would get translated by me into meaning "I've got a couple of other houses I'm planning on seeing too - and I will tell them the same tale"

- EA said they "may" reduce their fee = translated into "Can I have you will reduce your fee and put that in writing?"

alchemist.1

If you think the property is worth more, reject the offer and wait it out.

DandelionPatrol

HappyMJ wrote: »

What could it achieve on the rental market?

I'd wait for a better offer.

I'd even pull it off the market and just let it out myself and wait a few years before considering selling. You can switch the mortgage to a BTL mortgage.

£65k maybe £400 a month is a 7.4% gross return which is very good. There's even properties for rent at £450 a month which would make it a 8.3% gross return.

I'd seriously consider doing that.

This is of course an non starter if OP does not have the money for another property. And 7.4% or 8.3% return is fairly meaningless if they have to spend £400 or £450/month on renting somewhere else. They might as well stay.

PasturesNew

Is that you on Google streetview when the car went past? What's that machine for?

ancientofdays

Looks good inside, you have very obviously ensured that it is shown in good condition and the sunny day makes it look fresh and airy.

I can't spot if it is freehold or leasehold on the initial details or brochure and that might be important to many buyers. That could be just me, have had a bad night so if so, please accept apologies.

motherofstudents

I never like 'offers over' and would just ignore it. All you can do is hold out for the amount you want but you risk a long wait. You could do with a ftb coming along who can afford the mortgage but doesn't have cash to make improvements. The house looks lovely inside and as people have already said, investors will want to pay the minimum they can get away with.

moneyistooshorttomention

Must admit that I've never yet checked whether houses are down as freehold or leasehold when it came to deciding which ones to view in the first place. I just assume "Flat = leasehold. House = freehold" - though I have gathered subsequently that there are such things as leasehold houses and would have spotted that during "fine toothcomb" looking at house details after I had viewed them and was wondering whether to offer on them or no.

motherofstudents

My house is leasehold as are the vast majority in the area. It is the norm so it doesn't put people off. It is £5 per year and a lease of 999 years. In other parts of the country it may be a problem.

moneyistooshorttomention

motherofstudents wrote: »

My house is leasehold as are the vast majority in the area. It is the norm so it doesn't put people off. It is £5 per year and a lease of 999 years. In other parts of the country it may be a problem.

Out of interest - is that £5 pa set in stone? - as in whoever the leaseholder of your house is is unable to raise that amount for inflation or get themselves a "real" increase on it. Basically - just a peppercorn level and will gradually get to be even more of a peppercorn level with every passing year? or could that "leaseholder" turn round and send everyone letters saying "I've decided its now going to be £200 pa folks and that's that = no argument"??