Can't sell 1 bed flat in Eastcote, Middlesex

GDB2222

"and the difference is made up by the deposit that my brother would have got back from the flat. Obviously that's the sticking point, so I think it comes down to whether the deposit can be beefed up by c. 40k for a handful of days, while the flat sale goes through and then my brother's share will go back to the person that puts that extra money in."

I think that's wrong. The extra cash is not needed. It just gets netted off by the solicitor when the sale goes through. In other words you and your siblings are paid out as follows:
You: £130k + £52k
Your brother: £6k (plus £46k ploughed into the purchase)
Other sib: £52k

As I said above, the buyers will need SDLT as well, which is quite a lot.

GDB2222

kazzamunga wrote: »

My bro is first time buyer and it's below 300k so no sdlt for him, I guess? I said 46 because I know we're not going to get the full 52 each once estate agent and legal fees and potential deed of trust costs are deducted

You will pay the estate agent? Does he have sole selling rights?

I don't understand SDLT for joint transactions like this. Sorry.

kazzamunga

Ok thanks a lot that's really helpful, will look into the sdlt implications.

kazzamunga

I think so re estate agent, will double check though.

diggingdude

Is brother really happy to do this? Has he thought about what he would do in 2 years time once Brexit and Megxit are done when family want money back? madness

[Deleted User]

I'm not saying it's impossible but I can't imagine the pool of lenders willing to have one legal owner (who is responsible for paying the mortgage) and three beneficial owners is that big. It's something your brother will need to look into sooner rather than later.

kazzamunga

bouicca21 wrote: »

I’m a bit late in on this one, but I think the target market might be a single retired person rather than a young professional. Ground floor plus parking makes it attractive to someone downsizing.

I no longer know the Ruislip/Eastcote market, having decamped many years ago to the other side of London (and crossed the River), but I do know that the market generally in London is volatile. Some properties are going instantly for near asking price, others just hang. Also when the market is in post-bubble state, it’s the 1 bed flats that tend to take the hit.

I agree - and I think what we're coming up against is that retired people aren't very good at downsizing (if you're used to a house can you make a home out of a one-bed flat?), so they view a one-bed, have the money for a two-bed so think why not.

Definitely volatile - in fact, I'm finding that everywhere I look. For no reason at all, one house will be on the market for less than a week, and another will be on for 6 months. And it defies all the usual logic. I saw a house that needed a complete gutting sell in a couple of months because it had a decent garden, but another one that was a much nicer house hung around for 6 months and dropped its price twice. I also saw a 3 bed house that had been made into a 2 bed (which seems pretty undesirable according to most sources) sell within a week. The decor was nice and stuff, but yeah.

I think some people have been lucky, and we definitely haven't. But I certainly wouldn't see a 1-bed flat as a viable investment option in the future, so, lesson learned!

Cakeguts

I don't understand all the extra work in trying to get this flat to stay in the family. If you are willing to sell the flat to your brother for £286k which you say is a "fair" price why not just sell it on the open market for £286k and then your brother gets to choose his own next flat? I don't understand the emotional attachment to this particular property? Your brother is only ever going to get his share whether it is sold to him or whether it is sold to someone else. This does not benefit your brother in any way apart from not having to move it will just shift a problem flat onto him.

need_an_answer

Cakeguts wrote: »

I don't understand all the extra work in trying to get this flat to stay in the family. If you are willing to sell the flat to your brother for £286k which you say is a "fair" price why not just sell it on the open market for £286k and then your brother gets to choose his own next flat? I don't understand the emotional attachment to this particular property? Your brother is only ever going to get his share whether it is sold to him or whether it is sold to someone else. This does not benefit your brother in any way apart from not having to move it will just shift a problem flat onto him.

My view is its Dad who wants to keep the property and potentially as hes a senior member of the group his view carries more weight.

I totally get emotional attachment,I've well documented on the board over the years that one of my rental properties is exactly that,an emotional attachment an expensive hobby,call it what you like.

In this situation dad cant support the property on his own,TBH the family never really could support it individually,it always had to be financed collectively for whatever reason it was purchased in the first place.

It does seem as if the plan now involves shifting the mortgage from one sibling to the more compliant one which again seems to suggest a desire to keep it in the family rather than sell to an unconnected person on the open market..

If the family are truly willing to accept an offer of around £286k then in some ways a £295k asking price is still too high to generate a lot of interest...maybe they should have bitten the bullet and gone for £290k.

Playing devils advocate here...but I wonder if the offer came in at £286k from a private buyer if it genuinely would get progressed or in the back of someones mind that's the price that's the price for a family transaction.

GDB2222

Cakeguts wrote: »

I don't understand all the extra work in trying to get this flat to stay in the family. If you are willing to sell the flat to your brother for £286k which you say is a "fair" price why not just sell it on the open market for £286k and then your brother gets to choose his own next flat? I don't understand the emotional attachment to this particular property? Your brother is only ever going to get his share whether it is sold to him or whether it is sold to someone else. This does not benefit your brother in any way apart from not having to move it will just shift a problem flat onto him.

It’s not really a problem flat. They just have to find the right price.