selling our flat and New Builds - what would you do?

tootiemac

Hi All,

Looking for peoples advice on 2 questions:

1. We bought our first(FTB) Flat in early 2014 and it appears there was some fibs on the sellers part about other residents. We are a 7 in a block property and though we were told that 3 others were owned it appears they are all owned by the council.
This has given us problems because there are some tenants who do not care of the building as they should and every repair that needs done we get a vote but it never counts because the council have the other 6.
We have had various issues ranging from constant loud music, a suspect drug dealer and the most recent a new couple who fling everything out their windows and into our garden.
The last straw was last week when one of them smashed in the entry door because they forgot their key.
We now really want to sell but worry that we’ll lose money. So the question is what do we have to disclose and what don’t we?

2. Looking at a new build just along the round (wont complete for another 6-10 months) but this is 2x the value of our current property, so doubling the mortgage unless we extend the years.
The question is sell buy ourselves or use their help to sell scheme and possibly have to go into temp rental?

Sub question – anyone that has bought a New Build, what was the value increase after 5 years, did it drop like a new car does, did it recover within those 5 years.

Pixie5740

Unless you've reported your neighbours to the police and/or council I don't think you have to declare anything to potential vendors. It's an "I'm all right Jack" solution really that many people seem to go for. Instead of tackling the problems people try and offload them on to some unsuspecting vendor. So the previous owner probably didn't have to tell you anything and in turn you probably won't have to tell your buyers. However, if there is rubbish being lobbed out of windows and a smashed in door entry system your buyers should be able to figure it out.

If you can use the HTB EL scheme and have a get out plan then I would use it. It will lower your LTV meaning better mortgage interest rates.

As for the future value of new builds it very much depends. Not all new builds lose value, some increase due to location, location, location.

tootiemac

Thanks @Pixie5740!

Unfortunately most of the issues have resulted in Police and council attendance (read here what you will), we are considering contacting the council and asking if they’d like to buy it.
My view is to them getting an owner out of their hair who refuses to pay for any of the damage (because tenants don’t pay so they report everything) and getting a big property back in their portfolio is a good thing.
We have a figure we’d sell for but not had it valued yet.
We’re just wanting out we’re at our wits end with the tenants but I don’t want to offload it on others but telling them would definitely mean we wouldn’t get what we want (need) for it.

In terms of new builds they all look small and nowhere near the amount of storage cupboards we have 
I know the value is a bit of a mystic meg thing but I just assume there will be a decline in value after intial purchase and then it will start to increase slowly again.
We can use the HTB scheme and they have a scheme to help us sell our house but people are putting worries in my head that we are jumping to much in mortgage.

Pixie5740

I've dealt with some crappy neighbours myself in the past. In fact some boot bought the flat below mine towards the end of last year. I don't think she has even moved in yet and she has already !!!!ed me off and the couple with the flat below her's. Nowhere near as bad as your scenario but, oh to have a detached house.

Not all new builds are created equally. Some builders are better than others and even then quality can vary dramatically from build site to build site. I remember a friend of mine looking at new builds in Dunfermline and one builder didn't include cupboards, they were an optional extra.

tootiemac

Thanks Pixie5740! (again)

We plan to , if we can sell ours, employ someone to complete a "snag" report to make sure we get exactly what we're paying for.

i think our biggest worry is actually managing to sell the house.
i keep thinking "who would want to buy this" but then we did didn't we.

then people (family) keep worrying me about increasing the size of our mortgage. Any opinions on taking a slightly longer mortgage? the standard here is 25 but if we take 30 the increase is smaller.
i know it cost most in the long run but who nowadays stays for 30 years.

sammyjammy

You do understand that if you buy a new build its likely a large number of them will be for Social Housing?

eddddy

Just FYI - when you sell your current flat, the standard questions you are likely to be asked include:

2.1 Have there been any disputes or complaints regarding this property or a property nearby? If Yes, please give details:


2.2 Is the seller aware of anything which might lead to a dispute about the property or a property nearby? If Yes, please give details:

It's not mandatory for you to answer these questions, but if you don't, the buyer (and their solicitor) is likely to be very suspicious.

If you do answer them, your answers mustn't be misleading. If the buyer is worried by your answers, they might ask more questions.



But... you should have seen answers to these questions when you bought the flat.

Maybe you didn't notice them or read them. So maybe your buyer won't notice them or read them either. (Although their solicitor might point them out, if they sound bad.)

tootiemac

@eddddy We did see these and in fact they stated they knew nothing of any issues with properties. Hence why i stated i think we we're lied to but i think its too late to raise it now.

we have had the police and council out several times and this is my problem because i cant lie (i just cant) but it will reduce the value of our property.

@Sammyjammy where do i find this out? i've looked everywhere but it doesnt show any social houses to be included.

lee111s

sammyjammy wrote: »

You do understand that if you buy a new build its likely a large number of them will be for Social Housing?

Hardly.

On our estate there's 10 out of approx 700 houses, and they're tucked away in the far corner.