Council buying property

[KimmySchmidty]

Hi there, I have got some really good advice here before so hoping someone out there might have experience here that can help. Sorry for the long post.

We own an ex-council flat on the outskirts of London, the flat has been on the market for a few months now with very little interest - we've had a handful of viewings and no second viewings or offers. I have friends with flats on the market too and they have also noted a lack of interest - unsurprising with everything going on right now.

I heard that the local council sometimes purchases property in their buildings so we got them around to value the place. They came back with a valuation which is around £15k short of what the property is currently been marketed at and £25k short of what it was first listed at. If we were to accept the offer we would probably break even based on what we paid for the flat 4 years ago and the work/improvements we had to make.

Selling to the council seems quite appealing to us in this current market as I can imagine if we sell to a private buyer they could try and knock down the asking price for things like a having to renew the lease in a few years, some work/improvements in the pipeline for the building (it's a leasehold flat). I don't think we would pay estate agent fees either - and I imagine it means we would be at the end of any chain but I could have that wrong.

I've suffered with anxiety during covid which has made being in the property difficult, exasperated by general noise, neighbours etc. We probably would have look to move homes in a year or so, but the current situation has made everything so much more intense.

I've blabbed on but I was wondering if anyone had any experience of selling their property to the council. How long does it take? have you had a good experience? I would also welcome anyone's opinion on whether we should sit on the property for a while in the hope we could sell it privately for a better price or seize this opportunity and hope we find a nice new place to live.

Thanks all - appreciate any advice here!

Family member is selling their property back to their LA.
It's been fine up to now...they move out next week.
Process: the council came and surveyed it and gave an offer.
Then family accepted and instructed a solicitor.
That's it really!
Pros: no crappy buyers to deal with, no trying to get 30% off the price before completion, no EA fees, no viewings (which in Covid-19 times is important I think) and the house will go back into social housing stock which is a good thing.
Another thing I'd point out is that EAs here are really over valuing properties atm...the LA offer is probably about right.
Good luck

That sounds great. I’d go for it. Flats are a tough sale at the moment and it seems like a pretty hassle-free option that enables you to move on.

No experience but I'd be interested to know how you get on. We're in an ex-local flat and thinking of selling in the spring.

This option occurred in particular because of the EWS1 issues causing difficulty with mortgages at the moment (we don't have cladding but have heard it can cause problems regardless), and also because it's really a FTB flat (2 beds, balcony) and again possible mortgage issues there.

But there are other pros too as pps say - no estate agents, limited people traipsing round, limits chain,
goes back into social housing stock, etc.

So please do update if you go ahead!

I've just sold my house to the local council, completed 2 weeks ago. They gave me full asking price and it was completed as quickly as my onward chain could go. There were a few hold ups with paperwork as there was about 5 different department's that all needed to speak to eachother but thats about it, and still faster than every other part of the chain!

Thanks all - appreciate the replies!
I am leaning towards taking the offer. I think we could get a higher price selling it privately at some point in the future, but I do like the prospect of not having to deal with a buyer who could potentially try and knock down the price after surveys, etc.
The council said they complete in 8 weeks which seems pretty speedy, I hope they would adjust their timescales according to any chains we might be in - but I'm not sure on that part yet. Seems like they did for @PeachandBee so that's a good sign.

I had an ex-council flat. I was the 2nd owner of it as the original council tenant bought it under right to move for about £25k in the mid 90s and then sold it to me exactly 3 years later (minimum needed to not owe council money) for around £100k. It had been a period of big house price rises but they also benefitted from the special deal to council tenants.
I lived in the property for about 4 years and when I approached an agent to value it, they mentioned an ‘organisation’ who was buying ex council properties and they bought it from me for around £150k. So it was out of council hands for 7 years and the council had let it go for £25k and then had to pay £150k to get it back......not such good use of public money!!

But back to the Q, it was very straightforward. They tend to make an offer and won’t budge on it, but if you’ve accepted it they also won’t try and reduce it at the last minute. They won’t struggle to get finance to be in a chain....it is a very good and reliable way to sell. And we know flats, especially those without gardens are hard to shift at the moment, so I’d take the offer. Do t expect to get any extra for fixtures and fittings etc and expect them to be there at the moment of completion to change all the locks.

Anyone who has an ex-LA property they want to sell....certainly approach the council to see if they’re interested. They often will be if they still own properties in the building or area as they are already the freeholder and maintaining the building and it’s often easier and sometimes cheaper than building from new with all the inconveniences it brings.