Am I crazy to sell up in London?

[AnotherBoredOne]

We are fortunate and through some bloody hard work for years to have two London properties. One flat and one townhouse/development potential.

Thinking more mid to late this year, putting both on the market and concentrate on property where now living, another county.

Both houses have mortgages, we will be hit with capital gains but will still be ahead after all of this. Depending on price sold of course.

West London pre COVID a very sort after area.
Am I crazy?
Should I sit out longer? I don't want to 'desperate' sell :(

why do you want to sell?

Clear/reduce significantly debts in now home country and renovate family home.

My dh passed last year so life is no taking a different path now. We won't ever be back living in London.

It's maybe more of a question should I wait a year or two?

@AnotherBoredOne sorry to hear about your husband.
It’s tricky to know what will happen in London market. I would love to know too as also would love to sell for last year’s price if I could. Also, GBP is in a good ratio to other currencies at the moment so you get more if you buy elsewhere.

Unfortunate circumstances....sorry.....I think I would let out the flat and sell the house...there was a frenzy in my road late last year...7 houses all sold fast and now being renovated etc....i hear flats are hard to shift quickly now...but if price is right it will go fast....depends if you need the money or not...

I’m sorry to hear about your husband. Would it not be best to speak to a tax adviser to see how you can release the cash in the best way. If you only sell one property surely you won’t be hit with CGT? Then you wait a few years before selling the next.

Have you got children who might want to live in London one day? London is so hard to get on the property ladder.

@HelloDulling

Have you got children who might want to live in London one day? London is so hard to get on the property ladder.

No

Sell, I presume you have had the properties for a while. You could do with the money now & life is short. Sorry to hear about your DH. London property will probably stagnate, it already has in my area (pre covid) when you include stamp duty.

Sell the house, keep the flat. London will always be a centre for tourism, even if it ceases to be a financial and intellectual property capital in the post-Brexit post-Covid era. You’ll need somewhere to retire to, and a 24/7 cultural honeypot is ideal for that, as well as for renting out either to tenants or as a holiday rental if you need to supplement your income.

I’m so sorry about your husband.

Sorry to hear about your circumstances, it must be hard

I've recently (this summer) sold a flat, had little interest/offers despite lots of viewings, sold it for about 10% than I'd hoped & 5% lower than expected asking price : all lockdown related I think (upstairs flat, no garden)

Next door - same flat but with a loft conversion - has sold within a month on the market. 'Similar condition' according to owners, & sold for similar price to what they paid in 2015

I think price you achieve for selling depends on who views it, how much they want that particular property etc, which you cannot know. You can always put on market & not sell if offers are poor

I think that is more risky for a house as if you remarket it looks suspicious, with flats/FTBs the pool of people will likely be different a year out

so try it & see where you get to would be my advice

PS - in both cases, the London flats sold to people with v local links. My buyers were renting on the same street, next door buyers is an adult child who needs to be close to parents a few streets away.

Not everyone is leaving London. The person who gives you a good price will have v specific needs that your property fulfills - eg my flat I liked the light levels which are better than most locally, and wanted a specific grid of 5/.6 streets. My house - I really wanted a downstairs bathroom/bedroom and this house has that... so willing to pay for what I want.

Now living os and no intention of returning to the London or the Uk, so no need to keep for children.
Both will be sold just a matter of when?

It sounds to me that you might as well just sell up

No one knows what will happen and CGT and other associated costs won't go down! I would sell.

I'm sorry to hear about your husband.
In your circumstances, I would consult with some experts to see what the best way is to release cash. You have been through a lot of upheaval so have to be mindful to not rush into any big decisions. Sometimes having debt in the form of a mortgage is still more economically beneficial rather than paying other debts. On the other hand, I can understand you want to simplify your life a little bit in terms of administration and commitments, especially if you are living in another country.
You say you will never live in London again, but for example if you have uni or graduate aged children, they may want to be there to study or for a job? London is still a great city to have a foothold in.

Sorry, just saw the previous messages. In that case I would definitely sell and start the process already. There is no reason to wait.

I'd sell one now and wait- are they earning an income currently?
Then next year or even further down the road sell the other.
You get a CGT allowance every year so don't sell them both in same tax year.
Personally I'd always want a property in London. I have a small flat and am returning there (coincidentally I left London when my husband died) so buying a house. It's been a hot market where I've been looking (SW) with houses getting multiple offers and now not much available. Someone is buying these houses - there's no big exodus as far as I can tell.