Why hasn't it sold?

[TooManyAnimals94]

Been on the market 2 years! Shared ownership available. Had a cash buyer but unfortunately the HA who own the other half made admin so awful and slow she pulled out. That was 8 months ago, no bites since.

On my third estate agent. Viewings are few and far between (a lot of no shows) and often feedback is they like it but there is a large office building opposite in need of new ownership and it puts people off.

https://www.rightmove.co.uk/properties/163116008?utm_campaign=property-details&utm_content=buying&utm_medium=sharing&utm_source=copytoclipboard#/&channel=RES_BUY

I am absolutely desperate to sell. The mortgage and service charge have gone up significantly this year and I'm really struggling every month, even claiming what I'm entitled to as a low earner.

Moved in with ex husband 7 years ago. He left 3 years ago and we can't get divorced until it sells because neither of us can afford to buy the other out and I can't afford solicitors fees until it's sold.

Any advice please.

I afraid I agree with others.

My daughter is buying a flat at the moment (not in your area). I would have advised her not to touch yours with a bargepole because of the length of the lease and the high service charge. The council tax band also looks much too high. The one she is buying has only one bedroom and costs more than yours, but the Council Tax is only in band B.

The flat itself is fine and there is nothing in the photos that would put me off.

Not a stupid question but no I'm not allowed to sublet under the terms of Shared Ownership.

I have considered a lodger but it's not really a big enough flat for everyone to have their own space and the number of people who want to live with an unrelated 4yr old vs the people I would actually consider is a very small number.

The lease and service charges would put me off. The flat looks nice.

Good luck!

that is so blatantly incorrect. Anything under 80 years attracts marriage value when you come to extend the least (£££). Anything under 60-70 you’ll struggle to mortgage.

I do agree that the lease length is too short.

Aside from the financial stuff, it looks cluttered in places, especially the kitchen and toys and games look precariously balanced in the living room. A dog crate anywhere other than a utility area would put me off and the bed linen looks crumpled.

Some proper tidying might help.

Extend the lease or buy the freehold. Yes expensive but you have tried to sell with no luck. This could change things and would be worth the investment.

Shared ownership may be the issue. Rising rent / service charges and issues in getting HAs to do work. Lots of press and complaints about this form of ownership and that it is often overpriced. I worked for a HA and in the past was one of the early purchasers of a shared ownership property, it is not a form of purchase I'd endorse, so may be an issue here.

You can't just buy the freehold when you live in a flat, it needs a minimum of 50% of the leasholders to come together with enough money to buy 100% of the freehold from the current freeholder, and agree to form a limited company in order to do so.

Whilst owning a share of a freehold in a flat is not unheard of, it is (relatively) uncommon, and it only happens where at least half of the leaseholders were willing to do so. It's all or nothing - it either belongs to one freeholder, or it belongs to the leaseholders, giving them a share of the freehold. It is not possible in the UK for one leaseholder to purchase their % share in isolation.

FYI - highlights issues with shared ownership https://www.bbc.co.uk/news/articles/cy8gplg6jv8o.amp

I've only seen service charges that high (outside of London/other big cities) in gigantic flats situated in converted stately homes or castles. The highest I have found in my area for a 2 bed is 1350 pa.

I've seen articles in the news over the last few months where SO providers have basically said that the cost of maintenance is completely beyond their control. It's shocking. It's like the SO's themselves can't stop themselves from being scammed. They know their tenants can't afford the charges but they seem powerless to do anything about it.

I wish you all the best OP. Sadly, I don't think there is a silver bullet answer.

With respect to leasehold reform - yes - that is something Labour are trying to do something about. However, even they have already admitted that they don't think they're going to be able to get anything through in the course of this parliament. So, 4 years?

The only thing that can be done is to sell at a sizeable loss or significantly increase your own income.

It's really scandalous. I'm so sorry.

OK. I get there's a lot you can't change but quickly looking you do need to man up and do some stuff if you want to sell even though I appreciate it will take motivation to do.

The particulars need to explain the shared ownership. At the moment it looks like one can only buy conpletely for 250k.

You need to explain that you'll extend the lease as part of the sale process assuming you can.

The things covered by the service charge need explaining as its really high!

You really do need new photos and a good tidy up. Washing in the machine still? Messy beds? Even the dog crate can have a runner put over it or something to look more attractive.

It looks like it's been rented and the tenants didn't really want photos taken!

All the above take time to sort and work out the particulars of, but hardly any cost.

At the moment you aren't getting anywhere and if you need to move on you need to sort these things.

Well if I've learned something it's that I don't know how to make a bed properly 😂

It just seems to be the material of those sheets...they never look smoother than that!

I resent being told to 'man up'. I'm doing my bloody best here! I do need to have a big de clutter but the photographer was very complimentary and didn't really have any pointers ... likewise I constantly asking EA for advice and they don't have much to offer.

They are going to put a separate ad on for the Shared Ownership and there's a viewing for the whole property on Wednesday....I will be ironing all the duvet covers tomorrow I suppose!

OK maybe man up was a bit mean, I'm sorry, but some of this stuff is pretty basic and it's virtually free and will at least make it look more attractive.

Yes, the EA, can be asked for advice but they are salesman and many will say whatever you want to hear. Im sure people do list all sorts of horrors but that doesnt mean its wise to. Sellers do need to take some responsibility for their listing.

You have asked on here, of course, and so will now have some pointers as to things that might encourage viewings. Once you've got all of that in place you then have the price itself. I don't know your area but could see the M25 on the map so I assume property in your town isn't cheap.

This cracked me up - it's my truck! God forbid people who work live here!

I agree it shouldn't be the first photo though. Something else to put on my list!

Hey OP, here with the very best wishes and condolences to the arsehole situation you're in through absolutely no choice or fault of your own.

Sadly it won't be selling because of the lease length. I speak from experience as a former property solicitor and someone going through the hell of a lease extension at the moment.
I'm afraid sub 80 years it is unmortgageable, as even 'short lease lenders' like the one i have require a minimum of 80 years. If its any condolence mine is 49 years and I'm 2 months in to probably another 3 months and over £30k to extend it (and the flats only worth £150k!) It's a shitshow and so unfair. But with the time it can take (up to 6 months depending on the freeholder) you really do need to get the ball rolling and enlist a solicitor who can start the process of valuing the lease etc.
Without it you simply will not sell, unless its at a substantial reduction to a cash buyer.
I appreciate the situation with your ex but depending on finances he should pay at least half of the cost of the lease extension but arguably if he's got more money to hand could he pay it and knock if off the total you get when the flat is sold?

Hope this is helpful. I sincerely send you all the best of luck x

@TooManyAnimals94that is indeed funny especially as a farmer I drive a truck myself and my DD is an automotive lifestyle photographer specialising in… trucks so she would likely say it enhances the image.

Good luck with your upcoming viewing!

There are so many issues with buying and selling house in England. And this is yet another one. What is the point of having 100 year leases if they need renewing after just 20 years to make the place mortgageable? The average mortgage is 25 - 30 years. And even my hopeless maths figures even with 79 years to run, there's still most of an adults lifetime left to run on it.
It's just a stitch up helped along by risk adverse mortgage companies lining the lease holders pockets. And don't get me started on service charges.
As for the OP shared ownership has had a lot of bad press lately which won't help I fear.

What is the point of having 100 year leases if they need renewing after just 20 years to make the place mortgageable? The average mortgage is 25 - 30 years.

Well yeah, in theory, but in practical terms the only properties where leases will be extended will be flats and anything else which falls into that category. If it's a house then it will almost certainly be a purchase of the freehold and not merely an extension. To that end, any flat and similar should have a lease extension long before it gets into single-figures, and with today's baseline being around 80 years as "unmortgageable", an extension should take it up to 149 years, meaning it would be 69 years before another extension would be needed.

However, I too do not understand the whole 80-year thing, because back in 2001 when I sold my flat it was around the 60-year mark that was required - lenders seemed to want double the length of the mortgage period + 10 years after that. So, 25 years, and another 25 years, and another 10 on top.

I sold without a hitch (my lease was down to 64 years), but the year before that one of my neighbours had a lot of bother selling hers, as her buyers lender wanted longer than the 65 she had left at that point. It was very case-by-case back then. But 80 years does seem an awful lot.

I think it's a nice flat.

I don't get this comment? If you are prepared to do it then, why not now?
And a longer lease doesn't lower the price, quite the opposite?

The crux is though, if you are prepared to extend the lease, remove the lease info from the listing OR put 'currently' 79 years but will be extended prior to sale'.

I wouldn't consider the property with a 79 year lease but I would consider it with the above comment.

I am willing to extend the lease myself during the sales process and lower the price to reflect

Ultimately its the foundation of many corporate landlords portfolios. If you look into who the landlords are of the majority of leaseholds you'll find (ultimately) the same half a dozen names. Huge corporate landlords owned by pension funds. It's outrageous but has fuelled good returns for pension funds (who no doubt hold a great deal of sway in when it comes to political decision making) hence why its never made it to the top of the political agenda. Very much a 'little person' problem and in most cases the little people have been shafted by the government for the last few decades.
Sorry I'll hop down off my soapbox

Aside from the lease issue, the fact your service charge increased by 25% with no reason, is a huge issue - not many people will be willing to pay £300 per month, let alone what it might increase to.

As others have said, it does look like a rental too

• No door on boiler cupboard
• What looks like hinges on a non-integrated washing machine
• Washing in the machine
• Strange shower curtain placement
• Crumpled bedding

It’s got a lot working against it at the moment - the only way to sell is change what you can and reduce your price to compensate what you can’t.

What looks like hinges on a non-integrated washing machine

It is an intergrated washing machine (you can see the plinth runs right past it) however it is missing the cupboard door...the hinge-holes on the door are not a standard fit for all washing machines, and that machine looks newer than the kitchen, so at a guess the old door was never put onto the new washing machine, possibly because it didn't fit, but it doesn't matter why, what matters is it looks like whoever is responsible for maintaining the flat isn't too troubled about doing so.

And therein lies the problem - the flat could be very well maintained, but unfinished jobs like that door do give the wrong impression.

What no one else has said: you need to tackle this insane service charge head on. I’m amazed you just accepted it. You’re being ripped off. Form a Resident’s action group with all the other leaseholders to tackle this issue. Do some research and find out what you can do other than just rolling over. Don’t you think the other leaseholders are hurting? Get together and fight it. You’ve bought a leasehold property seven years ago but you have no understanding how this hideous feudal system wired and why your lease is stopping your sale. Educate yourself, form an action plan and get after it. There are plenty of advisory bodies and others who can give advice and support.

oh and if the agent said a 79 yr lease is not an issue, they are idiots. Ditch them and get a better agent once you’ve made headway.

i really sympathise but as an immigrant I am shocked that residents of England accept this appalling system. It should be illegal.

Best of luck.

Because I don't have the money to extend the lease but I will once the property is sold (in theory).