Different ways you can sell your flat
Selling your flat isn’t a daily occurrence and therefore it is always worth stopping to consider the various options you have when the time comes to sell.
Perhaps you have already tried to sell your flat with an estate agent and not been successful in securing a sale. When you have signed up with a high street estate agent or paid your fees for the services of an online estate agent, they can often “take their foot off the gas” having successfully secured a property listing or use sneaky tricks along the way. It is then a waiting game whilst you wait for offers to come forward for your flat, which are often at a lower price level than your asking price. This can take some time and is rather out of your control.
Property auctions can offer you the certainty of that all needed sale, however the purchase price remains unknown until the time of the actual auction. We discuss the pros and cons of selling at auction further in our website guide and are happy to talk through how this may apply to selling your flat successfully.
In recent months there has been increased interest in selling flats fast and looking to move to larger houses with gardens. The LDN Properties flat buying service can provide you with the certainty of a sale in a time scale that suits your needs. We strive to provide you with an indicative offer within an hour of making your request and are happy to discuss the sale of your flat further on 020 7183 3022.
Leasehold management pack for selling your flat
When selling your leasehold flat, a key package of documents that you will need to provide to your buyer’s solicitor is a “management pack”. The UK Government website also discusses the information you will need to provide for a leasehold property when selling a flat. The management pack can sometimes take a matter of weeks to prepare, therefore it is essential to request this from the freeholder / managing agent as soon as possible.
Costs when selling your flat
Selling a flat is broadly very similar to selling a house, however there are often some additional costs to consider over and above the usual costs you may incur during the sale of a house. Some of the following charges may be applicable to you:
- Conveyancing fees – Selling a leasehold flat often results in additional charges from your conveyancing solicitor. This is often due to some of the complexities that arise when dealing with a leasehold property. Read more to find out exactly what a conveyancer will do for you when selling your flat.
- Management pack – There is a cost to obtain the management pack from the freeholder / managing agent with the cost ranging from £100 to £500+.
- Service charge and ground rent – Both of these charges continue to be payable until the actual day of completion. Even if you have sold your flat and exchanged, you will still be liable for these charges until the day of completion.
- Retention – Since certain current service charges may not actually be known at the time of selling your flat, you may find that a “retention” is requested. This basically means that your solicitor will retain an amount from the actual sale proceeds of your flat for a period of time until the outstanding charges are actually known.
- Deed of covenant fee – This is a document which your buyer will sign agreeing to comply with the terms of the lease. The freeholder / managing agent will provide this document if required and usually at a cost.
The type of flat you are selling
In the UK you can find many different types of flats throughout the country from new build flats through to mansion block flats. When you are thinking of selling your flat it is always a good idea to consider exactly the type of flat you have, as different flats can have specific considerations that may affect the speed, complexity and value achieved when you sell.
Basement flat
Owning a basement flat can have certain advantages and disadvantages, but one important fact to know is that it can sometimes be harder to sell this type of property compared to others. But this hurdle can be overcome depending on the method that you use to find a buyer. Read our guide to selling a basement flat for further information.
Ex-council / ex-local authority flat
Owning a council flat can have pros and cons, but one key fact to know is that it can sometimes be more difficult to sell this type of property compared to others. If you are looking to sell an ex-council / ex-local authority flat it’s possible to find a buyer quickly if you follow some simple tips. We have written a comprehensive guide to selling a council flat full of useful information.
Converted flat
This is characteristically a larger older house that has been split up into 2 or more flats depending on the size of the initial house. Given the age of these houses and the fact they were not designed to be flats means that sound insulation between the flats can sometimes be quite poor. When you need to sell a converted flat, one of the most common concerns for any buyer is that of shared maintenance costs in the building (such as communal staircases and corridors, roof repairs and shared responsibility gardens). If these costs are managed well with a consistent maintenance programme in place, there is often not too much concern.
Purpose-built flat
The most common type of flat being constructed today, these are built with the sole purpose of being flats. Depending on the location of the flats, you may find the ground floor is used for commercial purposes such as shops or restaurants. If you wish to sell a purpose-built flat, you typically don’t come across too many issues during the sale process as these often have a management company in place and mortgages are readily available. Issues are more likely to arise in smaller blocks of flats or when the commercial units are used by businesses that pose a greater fire risk, such as launderettes and dry cleaners.
High rise flat
High rise flats, also known as tower blocks were constructed typically between the 1950’s and 1970’s throughout the country and often in major city areas. Selling a high rise flat can be somewhat tricky and often they sell at a reduced price when compared with other standard types of flats. Certain high rise blocks of flats have concerns relating to fire safety for which obtaining a mortgage can be more complex, as fewer lenders provide mortgages against high rise flats.
Mansion block flat
Often found in London, these are Victorian and Edwardian blocks of flats often across 5–7 floors. Being purpose-built, they are considered as conventional flats, however given the age of the buildings there are a number of issues that may become apparent when you want to sell your mansion block flat:
Service charges – Given the age of the building, the service charges to maintain the building can often be quite steep and ultimately reflects in the sale price
Lease length – Short leases are quite common in mansion blocks and can directly affect your sale price as well as mortgage availability for any buyer
Lifts – Lifts are not always commonplace in these buildings and can reduce the choice of buyers available
Maisonette
Maisonettes are often duplex flats, however the key identifying feature of the often-confused maisonette flat is that it has a private front door to the flat with no communal areas in the building. With no communal areas to maintain, service charges are often lower than purpose-built and converted flats. When the time comes to sell a maisonette flat, you will typically find few specific problems that slow the sale down.
Penthouse flat
Penthouse flats are often found in a purpose-built block of flats and are highly desirable given the open plan and high level living such flats offer. When you look to sell a penthouse flat, it is important to be aware that service charges can often be somewhat higher than other regular flats in the building and buyers will bear this in mind when making an offer.
Duplex / Triplex flat
Duplex flats and triplex flats are straightforward flats across 2 or 3 floors in a building with a staircase contained in the flat. These are often found in purpose-built blocks of flats or as a converted flat. There are generally no further issues faced when selling a flat like this as they are in all senses a conventional flat.
Studio flat
A flat with a shared living room and bedroom is known as a studio flat. The bed may fold up into the wall or be placed in the living room. These flats provide affordable and compact living with low outgoings. The issues faced when you are looking to sell a studio flat is that they appeal to a smaller market and often mortgage lenders don’t provide financing for these purchases. Read our guide to selling a studio flat for further information.
Retirement flat
Retirement flats are often purpose-built blocks of flats, however there is a minimum age restriction for living in these buildings, often over 55 or 60. Selling a retirement flat can be quite difficult for a number of reasons:
- The age restriction reduces the size of the sale market available
- Often the ongoing service charges are very high since these blocks typically have on-site wardens and additional services
- When the flat is sold there are often transfer fees to be paid that are worked out as a percentage of the actual sale price
Freehold flat
A true freehold flat is an extremely rare type of flat and is often confused with “a flat with a share of the freehold”. With freehold flats, there is no legal means of allocating the costs of shared building features such as roof maintenance. Consequently, mortgage lenders often don’t provide financing for these flats and when it comes to selling a freehold flat the market of buyers is quite small.
Selling your flat with a short lease
Selling a flat can sometimes be a complicated process, and you might be concerned that having a short lease flat could pose a potential hurdle to finding a buyer. However, that’s not the case, and indeed you will find that it can be relatively simple to sell your flat with a short lease.
What is a short lease?
Short leases are called such because their duration remaining is typically 80 years or less, compared to conventional longer leases of at least 100 years but often many more.
Lease length and the effect on the value of your flat
80 years remaining on your lease is considered to be the “magic number” under which the value of your flat will start to fall and the premium payable to extend your lease will increase. With a lease length of less than 80 years remaining, half of the marriage value becomes payable for any lease extension of your flat.
Is it possible to sell a flat with a short lease?
Some observers believe that flats with short leases are harder to sell because they do not give mortgage companies long-term security over the future of a property, as the freeholder might decide not to renew the lease once it expires or indeed charge you to extend the lease. For this reason, you can expect the overall value of your flat to decrease every year, starting at the 80-year mark. For example, the flat will be worth more to prospective buyers when it has at least 80 years remaining on the lease rather than at 20 years remaining.
You have several choices for selling, ranging from auctioning your flat to working with a property buying company, but the correct option will hinge on a host of considerations.
Before deciding on how to sell, you can seek advice from free and independent associations that can talk with you about your situation and ways that you could sell. These groups include the Association of Leasehold Enfranchisement Practitioners and the Leasehold Advisory Service, who will both give you good impartial advice at no cost.
Can I extend an existing lease before selling my flat?
In the majority of cases the answer is yes, however you should also consider if you should extend your lease before selling. As long as you have been the legal owner of the flat you are selling for at least 2 years, then you are entitled to request a lease extension for a further 90 years. To do this, you would serve a section 42 notice on your freeholder, however be sure to seek professional advice before doing so as there are a number of cost implications to be considered.
If you have owned your flat for less than 2 years, you can still seek a lease extension by negotiating directly with the freeholder. Again, professional advice should be taken in advance of this.
Which choice is right for selling my flat with a short lease?
Thankfully, you have a few options for selling your flat with a short lease, each with pros and cons depending on your individual needs (whether it’s financial, time, or something else).
Everyone’s situation is different, and you’ll need to consider every possible factor from cost to timing and beyond, but the takeaway is that there is certainly a market for selling short lease flats.
How quickly can you buy my flat?
As professional flat buyers, we can turn around the sale of your flat in a matter of a few weeks or sooner if required. Our flat buying process is just the same as how we buy houses and we work to provide you with a personalised indicative offer within an hour. If you would like to proceed, we get working straight away to prepare our formal offer alongside the necessary conveyancing work. To ensure we can move ahead as quickly as possible, it is important for your solicitor to work in a timely manner to provide all necessary legal documentation without delay. We can discuss the key steps in more detail with you to help you complete the sale of your flat just as soon as required.
Why sell your flat to us?
Everyone has their own personal reasons for selling their flat to a professional homebuyer. LDN Properties are experienced in buying flats of all types no matter what the reason. We will always offer you a personalised service and commitment to buy your property in a timescale that works for you.
Our specialist team are more than happy to talk through any questions you have when selling your flat, please give us a call.
How much can LDN Properties buy my flat for?
We buy flats throughout the UK, ranging from mansion block flats in London to high-rise flats across the UK and everything in between. Our offer price will depend on various factors relating to the flat you are selling and we will always discuss any issues with you in detail.
Call our buying team today at 020 7183 3022 to discuss your property further and request a free, no-obligation estimate for your flat, or click to Request your Offer.
