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    • NickBane27
    • By NickBane27 14th Apr 18, 7:17 AM
    • 1Posts
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    NickBane27
    Selling share of loft before moving
    • #1
    • 14th Apr 18, 7:17 AM
    Selling share of loft before moving 14th Apr 18 at 7:17 AM
    Hi

    We’re looking to move house soon, ideally within the next 6 months. We currently live on the ground floor of a two flat period conversion. We own the share of freehold, and the loft space is not demised to either flat. The upstairs neighbours own the other share of freehold.

    Our upstairs neighbours have hopes to convert the loft to expand their flat. To that end, they have approached us to sell them our share of the loft space. They have no plans to convert the loft in the short term - they say they don’t have the money at the moment and would still need planning permission - but would like to acquire the loft so that they have the option in the future.

    My questions are:
    - when we sell, would we have to declare that the neighbours are planning major building work?
    - if we do have to declare it, is that likely to more than offset any money we get for the loft in the way of reduced sale price?

    Thanks
Page 1
    • eddddy
    • By eddddy 14th Apr 18, 10:27 AM
    • 6,328 Posts
    • 6,185 Thanks
    eddddy
    • #2
    • 14th Apr 18, 10:27 AM
    • #2
    • 14th Apr 18, 10:27 AM
    My questions are:
    - when we sell, would we have to declare that the neighbours are planning major building work?
    Originally posted by NickBane27
    You don't have to volunteer any information about the planned building work. But you must not give misleading answers to any pre-contract enquiries.

    TBH, as your buyer will become a joint freeholder, I suspect they will see that consent to convert the loft has been granted, before they buy.

    - if we do have to declare it, is that likely to more than offset any money we get for the loft in the way of reduced sale price?
    Originally posted by NickBane27
    It depends on...
    • how good you are at negotiating, and hence what price you achieve for the loft space
    • how savvy your buyer is, whether they could have negotiated a better deal than you

    For example, if you could sell your 50% share of the loft-space for £20k... but your buyers are more savvy than you and better negotiators than you... and could have got £50k for it... you might be worse off by selling it first.

    But the opposite is also true.

    But, on balance, I think most flat buyers won't be very savvy about this kind of stuff - so I'd be tempted to sell the loft space myself first.
    • Tom99
    • By Tom99 14th Apr 18, 11:31 AM
    • 2,068 Posts
    • 1,392 Thanks
    Tom99
    • #3
    • 14th Apr 18, 11:31 AM
    • #3
    • 14th Apr 18, 11:31 AM
    I can't see any problem with what you want to do, you would just agree a variation of the upstairs lease.

    Another option would be to sell your freehold share to upstairs.

    You would need to make sure the lease on your flat was saleable so maybe alter that to 999 yrs at £0 ground rent.

    That should be even more attractive and valuable to upstairs as they would not then require any joint permission to convert or extend.
    • Shedman
    • By Shedman 14th Apr 18, 1:34 PM
    • 150 Posts
    • 81 Thanks
    Shedman
    • #4
    • 14th Apr 18, 1:34 PM
    • #4
    • 14th Apr 18, 1:34 PM
    If you sell the loft space who will then have responsibility for the roof (especially if the other flatholder actually builds the loft conversion)?

    At the moment I am assuming that as the loft is not demised then both of you, through the service charge, contribute to its (and the roof's) maintenance.

    If I was going to buy your flat knowing that the other flat had the right to use the loft for a conversion and potentially cause issues with the roof (without them having sole maintenance responsibility for the roof) then I would be fairly concerned and would probably reduce any offer significantly or walk away.
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