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Original poster

Should I sell my London flat at a loss or wait it out?

68 replies

ShimmyingThroughTheChaos · 08/08/2023 17:22

I've just received an offer on my flat in Zone 4 in London for £255,000. I bought the flat for £275,000 in 2016. It's 5 mins from a train station, 15 min journey to London Bridge and about 10min car journey to "nice" places like Blackheath and Greenwich. It's a very large split-level ex council property with 88 years on the lease.
It's in decent condition and we have received very favourable feedback from viewers on the condition and the amount of space, but only one offer so far (this one). However I am aware of the lease length issue, plus there's the fact that flats are now less desirable than they used to be post COVID and the cladding scandal (even though we don't have cladding , but I think it has spooked would-be buyers of flats across the board).
I'm leaning towards just taking the hit and moving on with our lives but DH thinks I'm being too pessimistic.
For context we are selling because our family has grown and the flat is just too crowded for all of us. We are looking to upsize in our (perfectly nice but unfashionable) suburb, and we can still afford to do this even if we take a hit on the sale price of the flat....
Please help!

OP posts:
megansmarkle · 08/08/2023 17:22

Do you have money to wait it out?

Almahart · 08/08/2023 17:26

If you can afford to move and have a better quality of life now then I think I would do that. I don't know what is going to happen, but remember if prices do go up again, then the gap between your flat and the bigger place you want to buy will increase.

Original poster
ShimmyingThroughTheChaos · 08/08/2023 17:26

We can wait it out but I'm worried the market is going to deteriorate further.
Since the pandemic DH's mental health has been in a bad way, and he has been vocal about how much he hates the flat and how he doesn't want our son growing up on a council estate (I owned the flat before I married him and he moved in). So that creates a bit of pressure to sell up and move. I guess it's a question of what premium we put on mental well-being really...

OP posts:
Scentedrose · 08/08/2023 17:27

Depends how long it's been on for & how desperate you are to move, also whether the buyers are in a strong position & able to move quickly & additionally whether you've found anything?

Almahart · 08/08/2023 17:28

Also, the lease isn't going to get longer, so at some point you may well have to find the money to extend it.

Original poster
ShimmyingThroughTheChaos · 08/08/2023 17:28

We've been on the market since May and have found a house that we should still be able to afford that I think could be The One... If an offer is accepted. There seem to be no shortage of suitable houses coming up at competitive prices in the local area

OP posts:
Lastqueenofscotland2 · 08/08/2023 17:29

With a fairly short lease I think it’s only just going to become less desirable

LegendsBeyond · 08/08/2023 17:29

I’d move. The longer you wait, the more of an issue the lease will be.

Sewerdrain · 08/08/2023 17:31

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AmandaHoldensLips · 08/08/2023 17:32

If I were you I would take the hit and move. Property is always "swings and roundabouts" and with a relatively short leasehold like that I'd take the money. Also, reading the papers this weekend, predictions are that the property market is going to be rough going for at least another year.

CatherinedeBourgh · 08/08/2023 17:33

It's 20k over 7 years. That's less than 250 pounds per month on top of your mortgage. Would it have cost you less than that to rent over that period?

The lease will need extending soon, and that's going to cost a bit. Will you get it back if you hold on?

TheYearOfSmallThings · 08/08/2023 17:39

Usually I would advise staying long enough to extend the lease, because that will be putting lots of people off. But since your husband evidently hates living there and you say it is much too small (for 3 people, despite being very large?) and that you can afford to take the hit, it might be best to sell now just to move on.

Hopefully your husband can contribute substantially to the purchase of a place that he feels is good enough for him...

usertaken · 08/08/2023 17:40

Just move.

1 offer in 3 months kind of indicates the asking price is too high. Was the asking price £275k as well?

Staying doesn't necessarily guarantee that you will get any more money, maybe you could, but also you might get even less.

Considering the next move is to a house and the current situation is affecting someone's mental health, money seems a secondary consideration here.

Seen this happening all over London really, a lot of the flats bought 2016-2019 don't attract the same price as they did. Some are slightly less (ie 5-10%) but you see the sellers trying to save face and not sell it for less than they paid.

25sheets · 08/08/2023 17:42

I wouldn't think twice. Prices are only going one way for some time to come. Sell and enjoy your new life/home. You've lived in your flat for some time and have been paying rent to the bank. It's what lots of people do. Enjoy your new life/home.

Sprig1 · 08/08/2023 17:59

I would move. A bird in hand and all that.

good96 · 08/08/2023 18:16

If you can afford to buy your jew desired property with the offer on the table right now, it would make perfect sense to just accept the offer.

user1471538283 · 08/08/2023 18:19

I would sell it now as quickly as you can

I sold my last house at a loss and I'm still upset at losing the money but my mental health couldn't take much more.

Go now and stay somewhere long term.

RudsyFarmer · 08/08/2023 18:21

I think I’d accept that as so many people have moved out of London and I think the WFH culture is well bedded in now and the social life that used to exist just isn’t the same draw anymore.

PerfectYear321 · 08/08/2023 18:22

I would take the offer and run

wutheringkites · 08/08/2023 18:28

Just another perspective on this. The government are considering a lot of leasehold reform at the moment which should make it easier and cheaper to extend a lease, and to get better terms.

I'm not saying wait for this, because no one knows if/ when it will happen, and the govt will almost certainly change next year.

But I thought it was worth mentioning because the picture could be different in a year or two.

KievLoverTwo · 08/08/2023 19:14

I would think that it might take around three years for flats in London that aren't in red hot areas to start increasing in value again. That would be a bad idea give your other half's mental health.

Will the mortgage lenders give them the money given the length of the lease? I know some are not keen at all on short leases, something to think about, I.e. offering to cover the cost or starting the process now.

Treschic7 · 08/08/2023 19:16

That's extremely cheap for zone 4, with such a good commute. Personally I'd wait a bit longer.

C4tastrophe · 08/08/2023 19:21

Move now. You only live once, and it’s obviously not suitable now.
This incoming financial downturn could last 5 years or more, I would not wait.

YukoandHiro · 08/08/2023 19:22

We had to sell at a loss last year (bought 2014). We needed to get out, had totally outgrown the property.

Twiglets1 · 09/08/2023 06:57

Seeing as you are upsizing, it doesn’t really matter if you sell at a low price as long as you are also buying buy at a low price.
As long as you can make the deal work and get the house you want, I would accept the low offer.
Would have been preferable to have extended the lease earlier but 🤷🏼‍♀️

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