Underpriced neighbour affecting me

[theoriginalgin]

I own a flat in London. I bought it 3 years ago for 380k.

Given the market i dont expect to make any money on it, but I dont expect to loe anything either. I've had 2 valuations from separate estate agents in different areas for it this week and they both value it at 400k. No problem.

However, there is 1 other flat in my building which is the same spec as mine. They are unique as they were built with the option to adapt for disabled access and are therefore signficantly bigger than standard flats. Over 800 sq ft 1 bed flats in fact.

However, this person has theirs online on rightmove with a different agent for 370k. That's a massive underpricing given that nobody is paying asking price right now.

So I called up the agent advertising it. Turns out its been on the market for rent OR sale since october. It's now tenanted with another 4 months to go until 2m notice can be given. Mine is not tenanted (family member staying there while we decide what to do) so no chain or tenant issues, but i would hope its a more attractive prospect... however I'm not sure - maybe people would wait 6 months. What do we think? Is it worth trying to get 380k for it?

You won't know until you list it.

People want "move in ready" properties now, so I suggest you have your property staged by a professional, and paint it in a colour the stager suggests.

Estate agents valuing something at 400k doesn't mean that's what they think they will achieve.

In London things are going for 20% less than asking price. Agents value high so they get the property.

If the other flat has been on since October at 370, and not sold, then how are your agents justifying 400?? If 370 was undervalued then it would have sold ages ago, surely?

Some people just have to take a hit if they want to move and not wait it out, prices go up and down.

I've sold at a loss before, but the next one was cheaper and with all the money I saved on rent i financially didn't lose at all.

But some people really have an issue with selling something for less than they bought it for.

The current mortage is 1350, rent yield is 1300 (which the relative is paying).

Mine is not tenanted (family member staying there while we decide what to do)

So your relative is paying you rent (the mortgage) - do you have it in writing that they will leave as soon as you sell?

Renting a house without a contract
Simply, a verbal agreement is as legally binding as a written Tenancy Agreement (however, I would never advise to enter any agreement without a written contract). As soon as a landlord allows access into the property and accepts rental payment, a verbal contract is formed.

and

www.citizensadvice.org.uk/housing/renting-a-home/tenancy-agreements/

A tenancy agreement can be made up of:-
express terms. These include what is in the written tenancy agreement, if there is one, in the rent book, and/or what was agreed orally
implied terms. These are rights given by law or arrangements established by custom and practice.

Being a property suited to a disabled person, might put buyers off, e.g. handrails, accessible baths etc. Your usual first time buyers would prefer a swanky pad. It's also gigantic for 1-bed and has enough sq footage for a 3-bed.
What's the lease like? Would you be allowed to maybe change the layout to create another bedroom + get rid of the disability-friendly features? That would make it more valuable and sellable.