Help me to get the best price on first time flat buy

rockoutrockdove

Hello MSE,

I'm a first time buyer who has found a lovely one bed flat for 98,000. It's cheap for the area due to the flats in the block being for sale only to the under 35s as a condition of the land being developed back in the 80s. Lots of flats in the building were let to tenants until the start of year when owners were strongly reminded that letting the flats out is also not allowed. As a result, there are three identical flats are currently available, all vacant possession, all at a similar price. One has been available for six months, the estate agent says due to these restrictions.

As an under 35 buyer with no need for a second bedroom in an area with not much employment, I'd imagine I have reasonable leverage to knock the price down on my chosen flat. I'm aware it'll be hard to sell in the future too, so it's important to me to get a good price.

It's my first buy, how much should I aim to take off and how should I go about it? Any advice and tips around property price negotiation? Thanks!

Levs01

Have any flats there recently sold? What was their sold price? If nothing recent to go on, I would say as it's been on 6 mths and has major restrictions that would affect the future saleability of the property you could probably go in quite low, specifying these reasons. The worst they can say is no isn't it!

rockoutrockdove

I'll go and look now. Thanks for the input!

rockoutrockdove

Only 1 one bedroom flat has sold in the last year, but 8 two bedroom flats in the same block have sold in the same time frame.

That's definitely helpful evidence for negotiation.

Levs01

What did the 1 bed go for and what was its condition, floor level (i.e. The one you like is 1st floor and the sold was 3rd etc) how long ago did it sell?

rockoutrockdove

Same floor, sold in May, the ad is definitely not in detail so I couldn't tell you if the condition is better. 98,500 was the price it sold for.

However, using the tool, the 1 beds have not been selling like hot cakes at all over the last five years. You have to go back to Spring 2014 for the next 1 bed sale, 128,000.

marksoton

rockoutrockdove wrote: »

Same floor, sold in May, the ad is definitely not in detail so I couldn't tell you if the condition is better. 98,500 was the price it sold for.

However, using the tool, the 1 beds have not been selling like hot cakes at all over the last five years. You have to go back to Spring 2014 for the next 1 bed sale, 128,000.

Which means you need to question why those flats have depreciated.....

rockoutrockdove

Certainly,

would the possible lower availability of under 35 buyers over the last few years offer enough explanation? All flats in the block need buyers to be under 35. I agree that it's a big drop but maybe this combined with the leasehold owners being more vocal about buying them to let out cut buyer interest too.

They're certainly a niche buy given the lease caveats. But I'll keep my eyes open for anything else dodgy. Thanks for the input.

Hoploz

Is there any chance the one that went for a high price might have included money to pay for a lease extension?

If built in the 1980's and sold with a 99year lease they could now be suffering from short leases (which would also affect the value) and could be expensive to renew.

marksoton

rockoutrockdove wrote: »

Certainly,

would the possible lower availability of under 35 buyers over the last few years offer enough explanation? All flats in the block need buyers to be under 35. I agree that it's a big drop but maybe this combined with the leasehold owners being more vocal about buying them to let out cut buyer interest too.

They're certainly a niche buy given the lease caveats. But I'll keep my eyes open for anything else dodgy. Thanks for the input.

But if that trend were to continue you'll find it even harder to sell in years to come.....

You say they're cheap. The must be a reason.

Hoploz wrote: »

Is there any chance the one that went for a high price might have included money to pay for a lease extension?

If built in the 1980's and sold with a 99year lease they could now be suffering from short leases (which would also affect the value) and could be expensive to renew.

I thought this.