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Original poster

Would selling my share of the demised loft space reduce the value of my flat?

39 replies

Ellax · 19/02/2021 15:03

My flat is on the 1st floor and I have share of freehold. The flat above me (top floor) wants to buy the demised loft space off me so she can add another floor. I’m looking to sell. Would selling this to her reduce the value of my property? The loft space can only be accessed through her flat anyway...

OP posts:

RubyViolet · 19/02/2021 15:18

Following. Interested to hear how this works and how you calculate the value.
Sorry l can’t add anything useful.

RubyViolet · 19/02/2021 15:20

One thing l do know is that your percentage of the freehold reduces so any service charges, insurance costs reduce too as it should be divided by size sq foot.
So you should make some money from the sale and reduce your running costs.

PresentingPercy · 19/02/2021 16:28

Yes. The flat isn’t as big! Less versatile. So less desirable

Flamingolingo · 19/02/2021 16:31

Tough one. I can’t say for sure. Usually I would say losing storage is a bad thing, but it doesn’t sound like you can readily access the storage and then there would be the issue of securing anything you did arrange to put there anyway.

It possibly will devalue the property, but if she compensates and covers legal fees then I can’t see an issue.

Covidcorvid · 19/02/2021 16:33

If she adds another floor will it turn a possible bachelor pad sized flat into a family sized one? Will it increase the chances of noisy toddlers running above your head in years to come?

titchy · 19/02/2021 16:40

@PresentingPercy

Yes. The flat isn’t as big! Less versatile. So less desirable

Her flat stays the same size! It's the flat above that wants to buy the loft space.

Original poster

Ellax · 19/02/2021 17:00

My main concern is that I’m trying to sell the flat. Accepted a low offer as desperate to sell. Would happily sell my share of the demised loft space before selling to recoup some of my losses but I don’t want to do it if it then will compromise me selling the place.

OP posts:

Covidcorvid · 19/02/2021 17:09

I really wouldn’t risk the sale, the buyer will go nuts. And demand a significant drop in price. You’ll end up losing anything you’ve gained with all the hassle.

TomDickAndHarrods · 19/02/2021 17:24

I would talk to the Estate Agent - and if you even consider this get a RICS approved surveyor to give you a valuation and a report on the implications. At her cost.

If I was in the middle of buying a flat and the vendor did this, I would pull out. The process would be complicated unless the timing of the 2 transactions are exactly in sequence.

When is your buyer hoping to complete?

NachoNachoMan · 19/02/2021 17:28

Can't you sell your flat as it is, and let the new buyer go through that hassle?

NoSquirrels · 19/02/2021 17:32

Sounds like a major hassle if you’ve already agreed with a buyer, and if I were that buyer I would be livid and probably pull out for all the reasons of flat above me gaining in occupants etc.

TomDickAndHarrods · 19/02/2021 17:35

@NachoNachoMan

Can't you sell your flat as it is, and let the new buyer go through that hassle?

But then the buyer gets the capital - having bought the flat at a knock down price!

OP - can you seek advice from a surveyor and your solicitor. Find out how much money is on offer. If it is well worth it to you, you could get an 'overage' clause put into the sale - which says that if any part of your share of the freehold is sold within a year you get 50%.

Then your buyer has an incentive to put up with the extra wait, and you get half the money.

But if you are close to exchange and your buyer wants to complete in time for the SDLT deadline then your buyer will probably not want any delays. Maybe they are a FTB and the SDLT doesn't affect them?

Palavah · 19/02/2021 17:41

Why wouldn't your buyer expect to reduce their offer by the sale price of the demised loft space?

hgaj · 19/02/2021 17:44

To a new buyer I don't think it really changes the value but if I was your buyer I would reconsider my offer as:
If I'd already seen the lease then I'd already be expecting that to be what I was buying
I'd be scared of building works disruption
I'd be worried that this may complicate the sale and delay things

Bluntness100 · 19/02/2021 17:46

Ok that changes it, you can’t sell it when you’ve already accepted an offer from someone on the flat. You need to tell your buyers.

Andthenanothercupoftea · 19/02/2021 18:04

Selling a proportion of a property is likely to be as much hassle as selling a house - similar legal processes etc so it's likely to add a significant amount of time on to the sale. Also as others have said that buyer has made an offer based on certain elements, of course they would seek a reduction if that changes.

RainingBatsAndFrogs · 19/02/2021 18:09

Yes, I wouldn't want to have my sale delayed by loft-buying, swiftly followed by major works going on over my head and the communal hall being a depot for building materials, etc, and then possibly a bigger dwelling upstairs - more people, family, teens, flatshare....

Either find out what the loft space is worth and take the money and run...and hope you can find a new buyer, or keep hold of your sale and leave new buyer to negotiate if they wish once they have moved in.

Jarstastic · 19/02/2021 19:19

I wouldn't get involved. The owner of the top floor flat can negotiate with your buyer later on.

I'm confused on why you are describing it as demised loft space. If the top floor flat owner wants to pay you for it, it sounds like it isn't in their demise but they want it to be. But it doesn't make sense that it's in your demise as you say you don't have access to it.

SendMeHome · 19/02/2021 19:25

You can’t sell the loft space when you’ve agreed a sale and not expect the buyer to either drastically renegotiate or pull out.

Bluntness100 · 19/02/2021 19:37

Agre, you either need to cancel this sale, and then proceed to change the title deeds. Or tell the buyer the sale has changed and you’re doing this, expect them to renegotiate and for it to be delayed.

Hallyup5 · 19/02/2021 19:38

It's pointless selling the loft space now, unless you're happy to wait for another buyer. If you sell it now, you buyers would be sensible to reduce their offer by the amount you sell the loft for. After all, it's money they would be losing out on if they aren't given the opportunity to sell the loft space themselves. That's if they don't walk away first. Sounds like you'll subject your buyer to inevitable building work if you sell it too. That'll put a lot of people off.

Bluntness100 · 19/02/2021 19:38

Why do you keep calling it demised though? Doesn’t it mean to be transferred?

Spindelina · 19/02/2021 20:54

Is there a ground floor flat which also has a share of the freehold (and presumably therefore of the loft space)?

mumsy27 · 21/02/2021 03:55

as they share the freehold, the loft and air above, subsoil belongs to all freeholders.
it is quite common for top flat to offer to purchase the space, only accessible from inside top flat.

Viviennemary · 21/02/2021 10:13

If I was the buyer I certainly would drop out. The risk of building work going on for months. And losing storage. How can you do this in the middle of a sale and after you've accepted an offer. Is it even legal.

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