Should I go to auction?

flowerpower55

I’ve posted before about my problems with trying to sell my shirt lease property.
I have 63 years left on the lease, been trying to sell for 6 months. Also in the last month the freeholder has written to us saying he is selling the freehold.
Been speaking to auctioneers and today is the deadline for the December auction.
We are in financial difficulties due to the flat being empty and need to sell but I’m worried it won’t sell and I’ll end up with all the fees anyway. I really don’t know what to do.
I’m in a sold agreement with my agency but can give them 2 weeks notice from Wednesday and the auction is after that date.

eddddy

flowerpower55 wrote: »

I’m in a sold agreement with my agency but can give them 2 weeks notice from Wednesday and the auction is after that date.

It doesn't work like that.

It's the date of introduction that counts. And the date of introduction is typically the date of viewing.

So if anyone views the property in the next 2 weeks (because they want to bid at auction) and then buys it at auction, you'll have to pay the EA's fee.


You should read your contract with your EA and/or you could phone the EA and check.


FWIW, in my experience, December is generally a bad month for selling at auction. There are fewer auction buyers around.

Tom99

flowerpower55 wrote: »

I’ve posted before about my problems with trying to sell my shirt lease property.
I have 63 years left on the lease, been trying to sell for 6 months. Also in the last month the freeholder has written to us saying he is selling the freehold.
Been speaking to auctioneers and today is the deadline for the December auction.
We are in financial difficulties due to the flat being empty and need to sell but I’m worried it won’t sell and I’ll end up with all the fees anyway. I really don’t know what to do.
I’m in a sold agreement with my agency but can give them 2 weeks notice from Wednesday and the auction is after that date.

Presumably you do not have the money to extend the lease?
The fact that the freeholder is selling may be a good time to negotiate a lease extension as the freeholder can take money from you as well as selling the freehold.
If you don't have the money have you made clear to your EA that you are willing to serve a section 42 notice so that a buyer can extend the lease without waiting 2yrs.
If you do decide to auction make sure the option for you to serve a section 42 is included as it may bump up the price you get a bit and make the property more attractive to cash buyers.

flowerpower55

I have emailed the freeholder today actually about a lease extension, just to see what they say.
Maybe I should forget the auction for now and just drop the asking price further.
I have said I will serve the notice for the extension if required.

supa34

A short lease period means the leaseholder will get get more money for it. In 63 years they own the land and what's on it!! You will struggle to find someone who will buy house with 63 years on as they won't be able to sell it on. My house had 800 years and I pur hased it for £1000. How much do oyu think yours is worth?

Slithery

flowerpower55 wrote: »

I’ve posted before about my problems with trying to sell my shirt lease...

I'll rent your shirt for 50p a week, what colour is it?

AdrianC

OP's previous threads about this property:
https://forums.moneysavingexpert.com/discussion/6009668/selling-flat-and-extending-leasehold
https://forums.moneysavingexpert.com/discussion/6057582/buying-freehold-selling-flat
https://forums.moneysavingexpert.com/discussion/6064320/don-t-know-what-to-do-%EF%B8%8F

It's been let, and the lease seems to have lost a decade in the last week.