What’s wrong with this property

GDB2222

I can see older flats, in good condition and with long leases, for around 30% less. 

But if you have done the research on newer flats, then you have answered your own question. Just bear in mind that the older flats were once new.

Ybe

GDB2222 said:

I can see older flats, in good condition and with long leases, for around 30% less. 

But if you have done the research on newer flats, then you have answered your own question. Just bear in mind that the older flats were once new.

That is very true. I always wonder how much you can push a developer for discount wise. I guess if they’ve already cut the price quite significantly from what they had before (which was very overpriced), they’re unlikely to give more than 5%.  

Prices in the area vary wildly too. 1 beds listed everything from 300k - 400k. 

Herzlos

The problem when negotiating a price with developers is that they want to keep the sale history price higher, so you may need to come up with some other way to get a discount such as deposit or stamp duty contributions. 

There's no harm in you saying that you've got a mortgage lined up, no chain, and are willing to sign now but you're only wanting £350k (or whatever) to change hands. It won't cost you anything and worst case they say no or counter offer. 

ReadySteadyPop

Ybe said:

Thank you for all your help, it’s very useful and I’m learning so much. 

A question on the new build at the former Homebase site - If I can get 5% off on these flats, would that bring it in line with market value? Or would it still be overpriced? I remember these initially being priced starting at 420k when they were first released at the end of last year. Now starting price is 380k so if I can get 5% off which is apparently standard with big developers, that would take it down to about 361k. 

https://www.taylorwimpey.co.uk/new-homes/north-finchley/the-tramworks?utm_source=google&utm_medium=cpc&utm_campaign=TWNT%20-%20The%20Tramworks%20-%20Search&infinity=ict2~net~gaw~cmp~TWNT%20-%20The%20Tramworks%20-%20Search~ag~Finchley~ar~706588395258~kw~new%20property%20finchley~mt~p&gad_source=1&gad_campaignid=21496349279&gbraid=0AAAAADyYQbEBTsGM-FVRcuZ4iEHNFuAd_

So around a 60k reduction, you can see for yourself that "market value" is a very fluid concept, you just don`t want to be in the group that borrowed 420k for flats with doubtful re-sale value.

ReadySteadyPop

GDB2222 said:

I can see older flats, in good condition and with long leases, for around 30% less. 

But if you have done the research on newer flats, then you have answered your own question. Just bear in mind that the older flats were once new.

30% less, wow. The OP really needs to be careful here.

Ybe

ReadySteadyPop said:

GDB2222 said:

I can see older flats, in good condition and with long leases, for around 30% less. 

But if you have done the research on newer flats, then you have answered your own question. Just bear in mind that the older flats were once new.

30% less, wow. The OP really needs to be careful here.

Why? Those 30% less flats are ex council

GDB2222

Ybe said:

ReadySteadyPop said:

GDB2222 said:

I can see older flats, in good condition and with long leases, for around 30% less. 

But if you have done the research on newer flats, then you have answered your own question. Just bear in mind that the older flats were once new.

30% less, wow. The OP really needs to be careful here.

Why? Those 30% less flats are ex council

The ones I saw on Rightmove were not public sector. Perfectly nice flats, dating from the 1930s. 

You really need to go and look at say 10 or  20 flats before making any decisions about buying, or even thinking about it any more. It would help you understand what is on the market, and you can then decide whether you want to pay the considerable premium for a recently built home.

At the moment, you are just going round in circles. 

GDB2222

For example, this is a two bed apartment, 600 sq ft, 100 year lease, for £275k asking price. 

https://www.rightmove.co.uk/properties/1616183272 bedroom flat for sale in Beech Lawns, London, N12

You really need to be asking yourself whether you want to pay an extra £80-90k for a smaller one bedroom apartment which is newly built. 

There could be some issue with the flat I’ve mentioned, but unless you make enquiries you won’t know. 

Ybe

GDB2222 said:

For example, this is a two bed apartment, 600 sq ft, 100 year lease, for £275k asking price. 

https://www.rightmove.co.uk/properties/1616183272 bedroom flat for sale in Beech Lawns, London, N12

You really need to be asking yourself whether you want to pay an extra £80-90k for a smaller one bedroom apartment which is newly built. 

There could be some issue with the flat I’ve mentioned, but unless you make enquiries you won’t know. 

I don’t think that’s comparable - it’s from the 1930s, EPC E, 102 year lease, needs modernisation, has a section 20 major works notice on it. 

Herzlos

ReadySteadyPop said:

GDB2222 said:

I can see older flats, in good condition and with long leases, for around 30% less. 

But if you have done the research on newer flats, then you have answered your own question. Just bear in mind that the older flats were once new.

30% less, wow. The OP really needs to be careful here.

And a Skoda costs less than a Bentley. I'm not sure what the point is here.