Selling with 88 years lease remaining

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Selling with 88 years lease remaining

    First time seller (London) with approximately 88 years lease remaining. I have two questions :
    1. Extend lease 5% of asking price
    2. Agent 'A' said no need to extend lease as the 'leasehold reform' and I should get the asking price if not 1 % less but no lower. Agent 'B' & C' 'now' tell me if lease not extend it will sell at 10% less than asking price.

    Bearing in mind Agents on comissions. The Property has been with Agent 'A' for 9 months and the asking price was 10% higher than the current market at that time and I have told them to reduce it and now they have 4 viewers in two weeks.

    Any thoughts on agents comments?

    #2
    In my experience most first time flat buyers are totally ignorant of all aspects of leasehold so it probably won't affect price much. If anyone is bothered you can always serve section 42 notice and transfer the extension rights with the flat.

    Comment


      #3
      I agree with your comment about First time buyers - unfortunately, the agents are not passing this information on. Thank you for the tip about ' transfer rights' - would you know what is the costs involve? and legal fees as I have not found a solicitor yet.

      Comment


        #4
        Is the property located in London near to a tube station ? Its best to appoint an estate agent with shop on the high street near to tube station entrance.
        The estate agents can be appointed on "sole agency" basis ( lower commission) or you can appoint several agents on "multi-agent basis" ( at higher commission ) to the agent which finds the buyer.

        Comment


          #5
          With 88 years unexpired this would not present any problems for a purchaser , most lenders insist on a minimum of 50 years unexpired on the lease after a mortgage term comes to its natural maturity , in the intervening period the purchaser will have the option after the qualifying period to purchase an extension to the existing lease.

          Comment


            #6
            The procedure for statutory 90 years lease extension is a legal right given to every leaseholder after 2 years .

            The free guides on "statutory 90 years lease extension" and "valuation of cost of lease extension" can be downloaded from LEASE ( www.lease-advice.org ). The cost of lease extension is higher for leases fallen below 80 years term due to addition of 50 % marriage value.

            If your property has been with Agent A for 9 months and no buyer found , you should terminate A and look for a different estate agent with shop on the High Street near to Bus or Tube station.

            Agents B and C may be correct in saying if lease is not extended , the sale price may be 10% below the asking price because most buyers do not want the problem of "struggling for difficult lease extension".

            Comment


              #7
              Originally posted by Gordon999 View Post
              Is the property located in London near to a tube station ? Its best to appoint an estate agent with shop on the high street near to tube station entrance.
              The estate agents can be appointed on "sole agency" basis ( lower commission) or you can appoint several agents on "multi-agent basis" ( at higher commission ) to the agent which finds the buyer.

              Agent A is on high street and independent agent - they 'seem' to have sold decent amount of properties but not mine, I gave them another week - still not much as changed and 'lots of words but no action'. I need to find a decent agent but not easy as I am unsure how to determine how to select one.

              Comment


                #8
                Originally posted by Gordon999 View Post
                If your property has been with Agent A for 9 months and no buyer found , you should terminate A and look for a different estate agent with shop on the High Street near to Bus or Tube station.
                ".
                Thanks for the link to the fees. Agent B is also on the high street who seems reliable during valuation, however, not able to put things in writing and I am not too keen on the terms of the contract, again I am unsure how to choose one that can sell, after being with Agent A. I understand multi agent is more expensive but my other concern is the 'introduction fee'..

                Comment


                  #9
                  Are you selling a property , occupied by rental tenant who is not allowing viewings ? Are you selling a property in poor condition and needs the TV house doctor's help ? Are you selling a property located in area that is not safe at night or too fare from a London tube station ? Are you selling a property in a high rise block ? Service charge too high ? Ground rent doubling up every 10 Years ? These are all negative points to make finding a buyer more difficult

                  If your flat has negative points and not in good decorative condition, you should not expect to get the highest price which only a brand new flat can achieve .

                  What commission rate does Agents A and B quote you for "sole agency basis" and "multi-agency basis ?

                  Comment


                    #10
                    Originally posted by Gordon999 View Post

                    If your flat has negative points and not in good decorative condition, you should not expect to get the highest price which only a brand new flat can achieve .

                    What commission rate does Agents A and B quote you for "sole agency basis" and "multi-agency basis ?
                    All 3 agents state that my property more at a first time buyers (believe the lease needs to be over 90 years) or for investors (bargains) hence, the challenge. There is another property (in my development) listed yesterday, asking price is £25K more! I hope mine will get sold as previously mine was at the higher end.

                    Agent A = 1 % all in
                    Agent B = 1.25% + VAT (and a lot of tie ins and additional fees)
                    Agent C = 2% + VAT (does not cover my area but it is piggy packing on other properties, currently have 2 properties in my area)

                    I need to find another agent - thinking of using multi agent but concern having to but all of them a few (due to clause on 'introduction fee'

                    Comment


                      #11
                      Update:
                      Agent A. 2 weeks = 1 viewer. Extending the lease costs around £8K + legal fees.
                      Agent B & C no go
                      I am looking at the other agents - Agent D is selling a property on my development and I was going to instruct them but they are unaware the property is on their books, and no call backs. Is this the norm ?
                      I am struggling to find an agent.

                      Being a first time seller not sure what to do.

                      Comment


                        #12
                        What type of location is your property in ? Big city suburbs ? in small town ? in small village and no bus service ?

                        What is the annual ground rent and service charge payable ? any central heating ? safety in street at night ? internal decoration good or poor ?

                        Check free newspapers in your local library for adverts by local estate agents ? Check zoopla.co.uk website for agents selling in your area

                        Comment


                          #13
                          When choosing an estate agent , they will quote their charge for finding the buyer under "sole agency " basis for 2-3 months period or under "multi-agency " basis.

                          Multi-agency basis means using several agents but only one company finding the buyer gets paid the sales commission.

                          Comment


                            #14
                            Gordon999 Appreciate your replies.

                            Property has Electric heating.in a cul de sac - quiet area in SE London, 5- 7mins walk to bus stop and 15mins walk to main train station,
                            Ground rent is £95pa and Service Charge is £1000pa
                            I am going to try one more agent! The person on the phone seem to be aware of their properties, the only thing is they do not have any of my property in stock but the comparsion property are a lot cheaper than mine! I am thinking is it a good time to sell.. but I should.

                            My concern is all the clauses in the contract, 'introduction' fees. Good to know about the fees regarding multi agents!

                            Comment


                              #15
                              Agent D's vaulation is £10K lower than the Agent B and C - I can now see why they can always acheive their target asking price as it is low. Is there any reason why I should not ask Agent A to reduce the price ?

                              Comment

                              Latest Activity

                              Collapse

                              Working...
                              X