Selling a flat in London/Price drop

[ilovesouthlondon]

If you're selling (or trying to sell) a flat in London (particularly 1 beds with no garden) how low have you had to drop the price? Is it a different experience for new builds vs ex local authority and how long did you have to wait for the sale to complete? Are balconys better than no outside space at all (probably a buyers question)? Experiences please!

I am hopefully going to comleteon the sale of my 1 bedroom flat in East London in the next few weeks. Cash buyer, no chain, it willhave taken about 10 weeks from start to finish if it all goes to plan. No garden, very spacious interioir, good condition but nothing fancy. Lots of victorian features as it's split level top floors of a victorian terrace. It also overlooks a small park.
It was on the market 18 months ago (I decided not to sell it as tenant was a friend and aked to extend lease for a year) and has sale agreed for the same asking price now. So no drop in price. Lots of viewings and four serious offers.

That sounds good only 10 weeks on the market (have I got that right)?

It was on the market for 5 days before I accepted an offer, so it sold really quickly.
It will have taken ten weeks, if all goes to plan, from offer accepted to completion.

A key issue is if they have cladding and are high rise. If so I think some cannot be sold at all at present. it is a massive issue.

we are selling a one bedroom retirement flat in a complex in essex at the moment (MILs probate sale) put it on at 120k several months ago and have just reduced it to 110k as due to covid no interest and still costing lease money out of what is left of her estate

I’m hopefully buying a one bed flat in south London (offer has been accepted) and I offered 30k under what it was advertised for. The agent had advised they wanted a quick sale. I’ve seen others that have been on the market for over a year, on rightmove they’re starting to be reduced by about 20k I reckon. Also depends on the lease length, there were others I liked but decided not to view as the lease was under 100 years. This one I’ve offered on has a communal garden but very small bathroom and bedroom, lease is 180 years though so a big bonus

BIL put a one bed period flat in zone 1 on the market in November. They've had two viewings and reduced by £50k. It's a gorgeous flat but a tiny roof terrace and not in a particularly nice part of east London. They're desperate to sell but they've had no interest at all. Would have been different 18 months ago, but people don't need to live so close to the city at the moment.

The cladding on new builds and the fact that people no longer want 1 beds is a problem. These are huge drops in prices (50k)! Whilst house prices are going up! I wonder what will happen when some people have to come back?

Had our one bed period flat surveyed for remortgage, and it was valued at £60k more than we bought it for 18 months ago. We’ve replaced kitchen and bathroom, but not spent that amount doing it

There’s a big difference at the moment between estate agent valuations & actual selling prices on London flats. EA’s massively overpricing in many cases.

@A1b2c3d4e5f6g7 when you say "surveyed" do you mean you had an estate agent round?

@DavidsSchitt sorry wasn’t clear, no a surveyor for the mortgage company. Was worried about downvaluations - one bed no private outdoor space in London. Was valued £60k up.

Actually the valuation by the surveyor was what we were told was a realistic quick sale price by an estate agent in the area a month or two before. However we also had some silly ones who thought we could get £100k plus more than we paid for it 18 months previously

And so wanted to put it on the market at £130k more, to achieve £100k more. And yes we’ve been looking in London also and seen some big markups by agents that don’t make sense

@ilovesouthlondon on the buyers side as we are kind of looking now, we want another flat in London, no new builds, no ex local, and we do want a balcony or a garden. Not keen on shared terraces or gardens, so a balcony or terrace would be preferable to us

Online I looked at a one bed in a block in London which looked lovely for my son), same price as the £350k 2 bed terraced house with garden he bought last month at end of the same tube line. The one bed however came with a £8500 a year for at least 2 y ears !!!!! service charge due to the whole block needing very expensive new windows. Not surprisingly there are quite a few for sale in that block and no one will buy them.

@Xenia wow no wonder! Some friends of ours in new builds are having huge issues with cladding and cannot sell or remortgage right now. They might have huge bills to replace the cladding also.
I also think the new builds don’t hold their value. Around here the fancy new build ones with huge service charges are the ones I see really being reduced. That and ones which aren’t done up nicely - agents said people are increasingly wanting move in ready. So we are looking at ones in poor states that we can redo to our taste and hopefully add value

The cladding scandal is obviously a disaster for lots of people who are now unable to sell.

I don't live in London anymore but my understanding from friends is that the prices of flats with no garden are falling significantly. I was speaking to one friend recently who said that two friends of hers had secured London properties (one flat, one house) for a huge discount on the asking price >20%. Obviously not the case universally but flats in London generally are not in as much demand.

In my building (SW London) 4 apartments sold in the last few months. They have a generous balcony ,communal garden plus underground car park and congierge. Newly built few years ago .

@10:11A1b2c3d4e5f6g7
If you dont want ex LA or new build what are you looking for? Victorian conversion?

@windmill26

That's interesting. I wonder if they sold at asking price?

@blue25

There’s a big difference at the moment between estate agent valuations & actual selling prices on London flats. EA’s massively overpricing in many cases.

Yes, this - I checked out some sold prices for our area recently, and two houses that I remember seeing before with asking prices of £1.25m sold for £1m in December, and one asking £950 sold for £825. South London/Herne Hill area. They were on the market for a couple of months, but less than six months, and looked very nice inside.

[quote ilovesouthlondon]@windmill26

That's interesting. I wonder if they sold at asking price?[/quote]
I think so.Not cheap either ,we are talking £490K for a 1 bed apartment and £630K for a 2 bedroom. They generally sell quickly but these 4 went like "hot cakes" ...I think the stamp duty holiday had a lot to do with it.

@ilovesouthlondon I love conversions of any kind - warehouse, school, other industrial also

Looks like it just depends in the flat then!

In our area lots of the blocks (mine included) are still sorting out EWS1 certificates.

The blocks who have completed the process and have the paperwork are shifting fast as those who want to buy have a very limited pool to choose from.

Nothing in my block can be sold at the moment if a mortgage is required as the lenders won't lend without EWS1.

Those who don't need a mortgage are savvy enough to realise that it's a buyers market and try to force the sale through at very low price which none of the vendors are accepting so all the flats that were for sale have been taken off the market.

However, the decrease in rental income in central london may force some of them to sell at a reduced price soon.

I've watched a flat in a block I looked at to buy have it's advertised rent drop from £415 / week to £360 in the estate agents window that I walk past daily . It's still available to rent.