Staircasing thoughts

itsthelittlethings

Had someone round to value my flat, they suggested staircasing as they said a buy to let might be interested in it. I very much doubt that the return on a studio at £250 would be worth it and I don’t like the idea of some bloodsucking landlord making money by charging a miserable tenant £1500 monthly to live in one room.

Have I missed anything? If anything, the only appeal of my flat is that it’s cheap (I pay no rent). I feel like paying £359/ month for twenty years just isn’t worth it.

I know that I struggle to save but am good at paying committments (paid religiously towards my car when I had one).

Thoughts? Questions?

Emmia

Are you planning on moving? Ultimately what a new owner does with the flat after you've sold is up to them.

vic_sf49

Why would you staircasing, make a "buy to let interested" in it?

If you sold, doesn't a new buyer have the option to buy at your percentage, or higher / full at initial purchase? 

Or have I totally misunderstood? 

sgthammer

This isn't definitive, but from what I've seen, shared ownership schemes typically don't allow BTL for reasons which are pretty obvious. So the only way Sheriff Fatman would want the OP's flat is if OP staircased up to the full value first, voiding the restriction.

That said, there are certainly people who'd jump at the chance of a cheap studio flat even if they did only own a percentage, especially if there's no rent payable on the remainder (which is not how I thought that worked). I suspect it's the impact on the estate agent's commission that's prompted the staircasing idea. Might a private ad be more likely to reach the target market?

itsthelittlethings

The problem is, it’s such a lovely flat I can’t get better around where I live. But I am ready for a change!

I would also like to increase the value of my property owning, although I suppose that’s not really what it’s about.

itsthelittlethings

vic_sf49 said:

Why would you staircasing, make a "buy to let interested" in it?

If you sold, doesn't a new buyer have the option to buy at your percentage, or higher / full at initial purchase? 

Or have I totally misunderstood? 

I wonder if you have to own for a certain length of time before you staircase. Yes I guess an investor could always staircase themselves.

i might just get a new carpet and get the kitchen and bathroom done. Not sure that would add much value though.

vic_sf49

If I was selling, I wouldn't bother.

It's a lot of hassle to change bathrooms and kitchens, and you're very unlikely to make a profit from it.

Emmia

vic_sf49 said:

If I was selling, I wouldn't bother.

It's a lot of hassle to change bathrooms and kitchens, and you're very unlikely to make a profit from it.

I have to agree with this. As long as both are clean and serviceable I'd stick with what you have.

I might repaint the rooms to freshen them up a bit, and fix any obvious issues but that's about it.