How much should a parking space cost in Hove (when DS2 already owns a flat in the block)(13 Posts)
Can I ask you for your opinions on the following please? Sorry it's a bit complicated:
DS2 owns (with a mortgage) a 2 bed flat in Hove in a small modern block. Half of the flats have parking spaces allocated. His does not have a space.
A flat in the block is just now up for sale. DS2 called the estate agent and offered to buy the parking space (only) of the flat that is for sale to add to his flat.
There was no response after a day or two, and he was uncertain as to whether his suggestion was passed on so DS2 emailed the owner of the flat who he knows enough to say "Good morning" to and had a reply to the effect of "What would you want to offer for the space?"
DS2 currently parks on the road under the residents' parking permit scheme at a cost of approx £130 a year. He had to wait 5 months to obtain a permit as there is a long waiting list. In the meantime he rented a space for £50 a month which he told me was a bargain as he needs a car to get to work.
A parking space would undoubtedly make DS2's flat more valuable, easier to sell eventually and be more convenient for him than hunting for a space every night when he comes home from work. It's less than 10 mins walk to the sea so a busy part of Hove.
An article I found suggests that a parking space adds 5% to the value of the flat which in this case would mean it should cost around £15k (flat is worth approx £300k).
Of course it's a leasehold flat so the permission of the Freeholder would need to be obtained too.
Has anyone been in a similar situation, what happened and does anyone have any opinions as to what to offer? Does £15k sound right?
Presumably the value of the flat for sale would be a little less but the current owner might actually make more money by selling the flat and the space separately and the new owners (if they didn't want that space) would still get the flat, a bit cheaper and and with a slight reduction in Stamp Duty.
Residents can buy visitor's permits for parking on the street BTW (although it's not that easy to find an actual space).
I know he is very lucky to be in this position. Your advice please?
Buy the space. A close relative has a 2-bed flat in Hove and two allocated parking spaces. She rents one of them out to someone else in the flat and that covers the service charge for the year.
Not Hove but another (cheaper, less desirable) seaside town we live in. Converted Victorian school house. Spaces owned by bigger flats and gradually sold off. Parking wasn't a major issue on the road and the space was still £5,000 to buy. And that was 10 years ago. So I don't think your £15,000 sounds at all unreasonable - sure someone will say it's low
A space in Rottingdean sold for £15k in 2012 according to The Argus, so it may be low.
Easy way to find out is to call 3 or 4 local agents and ask them for comparables.
Bear in mind that the vendor will probably want a premium on top of the going rate, to make up for the risk and extra legal fees of selling their flat separately to the space.
You may also need to factor in the freeholders fees.
Normally your soul, so that's quite reasonable.
Parking in East Sussex is a bloody nightmare.
Can your son find out how much the value of a flat without a space is and then look at the difference to how it has been priced with the space.
Selling a flat with no parking could make selling the flat a lot harder if the parking is such a nightmare so I guess the owner would want to make sure its not going to cause him issues.
Buy the parking space.
The residents permits are a joke; they don't limit them according to numbers needing to park.
This was one of the main issues that drove us to move.
It became increasingly difficult during the six years we were there.
Having moved out 8 months ago the difference is shocking when we go back to visit.
Some new-build flats near me in Leeds had the option of underground parking for £15k per space (flats varied from £100k to £350k), so given that Hove will be more expensive than Leeds then £15k for an outdoor space sounds about right.
Incidentally, the flats at the end of my road always sell straight away if they have parking but hang around for ages if they don't (and the ones with parking sell for more anyway), so it's well worth doing.
Thank you all for sharing your thoughts. Much appreciated.
One of my friends bought a garage in Hove for £12k a couple of years ago, so it sounds about right.
You need to check whether the owner can sell it. Some spaces are demised (let) with the flat on its long lease; others are on a personal licence that is terminated when the flat is sold and then licenced to someone else.
Assuming it is let as part of the other flat, you are right that consent would be needed to transfer it to your DS. He would need to take a separate lease or to do a surrender/regrant of his existing lease (as it would be increasing the area), so would need a lawyer and the consent of his mortgagee (if he has one). The landlord may also charge a fee for consent and will wants its legal fees to be paid, as will the bank.
Value - it would need a valuer who specialises in parking in the area to advise on the correct amount, esp given the parking issues in the area. However, the seller cannot be forced to sell, and so if he has an unrealistic figure in mind, he will be entitled to stick to it.
All the above being said, I think it's a v good idea if a price can be agreed and if the landlord agrees - will definitely be useful and enhance the value of your son's flat!
we've advised him to go for it. Starting by offering about 11k. An agent in the area who knows the block (but isn't one of the 4 who is selling it) told us this morning that it should be 10k at the max, another one said one sold for 12k a few years ago.
I'll post an update if anything happens.
Thanks again for all your advice. My OH was extremely surprised that there such a good number of responses.
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