Sale falling through - what shall we do with this complete turkey of a flat?

Davesnave

I know in the rural development close to me there's a similar situation with regard to communal areas outdoors, with no legally effective way to collect fees and manage their upkeep. Most of the properties themselves are well-maintained, so it seems madness that owners cannot agree to put something in place to cover the appearance of the surrounds.

This situation has pertained for over ten years now, and despite changes in ownership, it persists.

Talk to people individually and they appear to see sense, especially since 2 properties have not sold this year, despite large reductions. However, there's nothing on the horizon to suggest that anything's about to change.

I would get shot, either with a price that will tempt an investor, or via the auction route.

rachael88

Could you not advertise as cash buyers only for a month before putting it in an auction? I've seen a few properties that are listed like this, always around 50k less than other similar properties and they seem to sell though I have no idea what issues they have.

quantumlobster

Get rid.

Life's too short.

Also, being a landlord is a lot of aggravation and commitment for what, in this case, might be very little reward.

seven-day-weekend

Put it on the market 'cash buyers only' with a price to reflect this.

If no takers after six weeks, auction it.

The situation with maintenance is only going to get worse, it will be even harder to sell.

ginger_chocolate

Thanks for the replies so far everyone. Seems like most people agree with me that getting rid of it asap is the way to go. OH is still unconvinced though. Neither of us really cares for the idea of being a landlord, but the idea of having to sell for half what he bought it for really sticks in his throat (which I totally understand).

It's just a shame the other flat owners are so resistant to banding together to solve the problem and that there isn't anything we can just do by ourselves.

Just out of interest, what would happen if we literally couldn't sell at all? Does that ever happen?

quantumlobster

I suspect that all that would happen if you never sold it at all or let it out, would be nothing. It'd just sit there, costing you council tax and insurance money.

And then something would happen, and you or your insurer would be on the hook for a big bill.

peachyprice

Just get rid.

It's a lemon that could end up costing you more in the long run as landlords than your oh would 'lose' if you sell it.

What happens if something needs doing in the communal areas that you, as landlords are legally obliged to fix to make the place safe for your tenants but the other owners refuse to contribute to?

SeasideSally

I'd try it on the market as 'cash buyers only' at an attractive price, then put it into an auction if that didn't work.

Perhaps if the other leaseholders wanted to sell and couldn't, they'd start to see the benefit of sorting out the management issue. But personally, I wouldn't hold my breath.

What price would you put on getting on with your life and leaving this burden behind? I'd take the financial loss and be glad I got shot of the place.

saajan_12

Lower the price enough and it will sell. Through an auction, many potential bidders won't have viewed or conducted surveys so will assume the worst ie falling apart.. Overall after the discount for 'unknown' problems, plus auction fees, plus the expectation of gettign a bargain at auction would mean you get a lower overall price.

I would just sell through an EA as usual, but lower the price significantly and advertise as 'cash buyers only' if you don't get any bites.

Renting gives you a yield on the capital tied up in the flat.. money you can't put towards your new property deposit, meaning you have to borrow and so pay interest. After the extra interest, the rental profit will be much less, plus you have the ongoing headache of repairs, tenant changeovers etc.. As LL the buildign issues would still be your problem and if its such a nightmare to live in, you'll have frequent tenant changeovers.

LandyAndy

ginger_chocolate wrote: »

Thanks for the replies so far everyone. Seems like most people agree with me that getting rid of it asap is the way to go. OH is still unconvinced though. Neither of us really cares for the idea of being a landlord, but the idea of having to sell for half what he bought it for really sticks in his throat (which I totally understand).

It's just a shame the other flat owners are so resistant to banding together to solve the problem and that there isn't anything we can just do by ourselves.

Just out of interest, what would happen if we literally couldn't sell at all? Does that ever happen?

How much is 'half'?

If it's £250k I can see his point. If it's £25k not so much.