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Downsides of selling to a housing association?
sepia
Posts: 3 Newbie
Firstly, we're in Scotland in case that changes things (it usually seems to!).
We live in a small tenement which all used to belong to the HA. We bought our flat over a decade ago from someone who'd bought it from the HA. The HA now only owns one flat plus the 'fabric of the building', ie the common areas, external walls and the roof space. They are the factors for the block, generally fairly decent ones.
We've just received from them, out of nowhere, an expression of interest in buying our flat and we would love some advice about this.
We actually want to move and are about to start decorating etc to get it on the market within the next few weeks.
The last two flats that sold both had surveys that raised concerns about the roof. We're a top floor flat and don't have any problems with damp, leaks, etc but we're obviously concerned that this would come up again when we try to sell. Apparently the HA were adamant that there is no problem with the roof when it was raised with them, despite the surveys. It's a very old building and I've no idea when the roof last had any major work done to it.
The flat needs a new kitchen, the current one is clean and functional but it's old and tired.
We can see quite a lot of advantages of selling to them if they decide they want to take it further: save estate agent fees, save paying for storage for a lot of our stuff for an unknown length of time, save most redecoration/staging costs, save a lot of hassle and stress, potentially get a sale agreed quickly so we know what we can buy, the kitchen might be less of an issue as they may want to replace it anyway. The biggest thing is the roof: since it's their responsibility to identify repairs needed and they've had it drawn to their attention twice and said nothing needs done, it surely can't be used as a haggling point? It's a lovely flat and a nice area, but properties don't sell quickly here as it's quite far out, and it's a bad time of year to sell anyway (so presumably a good time to buy?).
We assume they'll be looking to pay an absolutely rock bottom price, although a friend of a friend who works for a different HA in our city says that her HA generally offers close to the valuation amount from the home report, because they're so desperate for housing stock right now.
So I think what I'm asking is: what are the downsides and potential pitfalls we need to be aware of? We're hugely inexperienced in all this as this flat is the only one we've ever owned, so we would really appreciate any advice.
Thank you for reading my very long post!
We live in a small tenement which all used to belong to the HA. We bought our flat over a decade ago from someone who'd bought it from the HA. The HA now only owns one flat plus the 'fabric of the building', ie the common areas, external walls and the roof space. They are the factors for the block, generally fairly decent ones.
We've just received from them, out of nowhere, an expression of interest in buying our flat and we would love some advice about this.
We actually want to move and are about to start decorating etc to get it on the market within the next few weeks.
The last two flats that sold both had surveys that raised concerns about the roof. We're a top floor flat and don't have any problems with damp, leaks, etc but we're obviously concerned that this would come up again when we try to sell. Apparently the HA were adamant that there is no problem with the roof when it was raised with them, despite the surveys. It's a very old building and I've no idea when the roof last had any major work done to it.
The flat needs a new kitchen, the current one is clean and functional but it's old and tired.
We can see quite a lot of advantages of selling to them if they decide they want to take it further: save estate agent fees, save paying for storage for a lot of our stuff for an unknown length of time, save most redecoration/staging costs, save a lot of hassle and stress, potentially get a sale agreed quickly so we know what we can buy, the kitchen might be less of an issue as they may want to replace it anyway. The biggest thing is the roof: since it's their responsibility to identify repairs needed and they've had it drawn to their attention twice and said nothing needs done, it surely can't be used as a haggling point? It's a lovely flat and a nice area, but properties don't sell quickly here as it's quite far out, and it's a bad time of year to sell anyway (so presumably a good time to buy?).
We assume they'll be looking to pay an absolutely rock bottom price, although a friend of a friend who works for a different HA in our city says that her HA generally offers close to the valuation amount from the home report, because they're so desperate for housing stock right now.
So I think what I'm asking is: what are the downsides and potential pitfalls we need to be aware of? We're hugely inexperienced in all this as this flat is the only one we've ever owned, so we would really appreciate any advice.
Thank you for reading my very long post!
0
Comments
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Get the flat valued by an EA and then see what the HA offer....0
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My LA is currently buying homes in the area and we always pay market value. Of course, there is often a difference between market value and what the owner thinks a property is worth....
Personally, I'd let them value it and make an offer. If you're not happy with the offer, got to the RICS website and find a local surveyor to do an independent valuation. Then compare the two and use yours as a bargaining tool.0 -
If the price is right it could be a very good option for you. Potentially more flexible about when you leave and less likely to nit pick after a survey.
As above, get it valued, deduct any potential costs, and find out the terms and how much the HA are offering.0 -
Thanks very much for your replies, they're greatly appreciated.
We have to get a home report even selling privately so that will have a valuation which we'd been thinking of as pretty much set in stone, but we hadn't thought of speaking to an estate agent to get their thoughts so thanks for that tip.
Now we just have to see what happens, it's perfectly possible they won't want to go any further but it's reassuring to have your feedback if they do
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I'm not sure that some posters understand that because this is in Scotland the seller pays for the valuation (Home Report) not the buyer.
I'm curious about the HA owning the fabric of the building. Do the deeds to your property not mention owning any of the communal areas? For example for my building I own 1/3 of the roof, 1/3 of the communal ground floor, 1/2 the communal first floor landing and 100% of everything from there on up (except the roof).0 -
My husband's put all the paperwork away somewhere safe and I'm loath to go rooting for it, so this is just from memory, but I do very clearly remember reading that they own the external walls and I think the roof space and close. It left me with quite a weird sense of owning this flat that's just kind of floating in space I don't own.
Yes, as sellers we pay for the valuation, sorry, I should have been clearer about that!0 -
We have to get a home report even selling privately
No you don't - the regulations only apply to properties which are marketed publicly. You do need to get an EPC (though that's only really enforced if the buyer asks to see it!).I do very clearly remember reading that they own the external walls and I think the roof space and close.
Unless something very odd is going on, no they don't - all the flat owners will own these in common.0 -
Also in Scotland
My son owned an ex council flat in a block of 6
The council still owned the 2 ground floor flats . They also owned the communal entrance, landings and stairs.
When the stair was damaged by fire the council repaired it.
My other son owns a flat in a privately owned block and shares the communal areas.0 -
The council still owned the 2 ground floor flats . They also owned the communal entrance, landings and stairs.
When the stair was damaged by fire the council repaired it.
Social landlords are normally factors of "their" block (at least for as long as they still own any flats) which means they manage maintenance of the common areas - but their share of ownership is only in proportion to the number of flats they still own.0
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