Flat not selling

[Bellabella82]

We’ve had our 2-bedroom shared ownership flat in London on the market for about 5 months now. There’s been a fair bit of interest and quite a few viewings, but unfortunately no serious progress. We did have one offer early on, but it fell through when the buyer didn’t pass the leaseholder’s financial assessment.
One of the challenges we’re facing is the service charge – it’s £340 a month, which feels steep given what’s on offer. There’s no concierge, gym, or any of the usual extras. The only real shared facility is a large communal garden, which islovely and well-used by residents, but we’re not sure if buyers are put off by the costs versus what they’re getting.
We’re really keen to sell, as we’re a family of four – with a 1-year-old and an 8-year-old – and space is getting very tight. We’re desperate to upsize, but we feel quite stuck at the moment.
Has anyone else had experience selling a shared ownership property in a similar situation? Is there anything we can do to make it more attractive or to speed up the process?
Any advice would be so appreciated!

That's the second worst SC I've seen on this forum in a month, especially given you get almost nothing.

Anyway, not posting to make you feel bad, posting to bump the thread so hopefully some good folks can give you some advice.

SO seem to be especially hard to sell at the moment.

I think a lot of flats are struggling to sell atm. I don’t think £4K a year sc is that bad in London. Where is the flat

I wouldn’t buy it with that service charge i’m afraid. Guess you’re just going to have to be patient and see if a buyer comes along.

Does that service charge include cleaning, lighting and maintenance of the common parts as well as the garden? Is there an element for a sinking fund for repairs? If so I think that is quite reasonable for a 2 bed in London.

I think you face two major problems:

First the London housing market has seized up. People cannot afford the high prices without an expectation that prices will increase in the future. People no longer expect that. Add to that uncertainty over jobs and high purchase taxes and there is little of no movement. The same decent properties have been sitting on the market for years.

Second, shared ownership has had a bad press recently. I think that is justified in some cases, less so in others. Depends who your leaseholder is.

You can mitigate some of this by reducing the price but that may limit your ability to buy a larger place unless you plan to move out of London. I do not think spending lots on redecoration and staging is worth it.

When a house/flat doesn't sell, it is always the price.

£340 service charge? That would immediately put me off, id expect a discounted price on the flat.

If you post a link, people can give suggestions on the listing…

but otherwise it’s price. For a hefty service charge and SO, people are going to want a really good price. If you’re not getting much interest, the price isn’t enticing enough to overcome those issues. The issue with that is then having enough to afford somewhere new… but your only other option is staying put.

£340 in service charges seems massive. I used to pay £80 for my flat, and people were a bit put off even by that. Does that include a sinking fund? Anything else you could use to make it seem like better value?

SC is definitely putting people off but there's nothing you can do about that. If everything else is good you can still get a buyer though, and the fact you had someone before who was keen is a good sign.
If you feel comfortable posting a link the eagle-eyed mumsnetters will spot anything else that might be stopping it, but only if you feel comfortable with that because those threads can get brutal.
Might be the best way of finding out what's stopping you from getting offers though.

SC always worrying -,also what feedback is the estate agent giving? The listing must reasonable if you are getting viewings.

A lot depends on where in London you are, but shared ownership and a massive service charge are not helping.

Not if it’s shared ownership! That’s already a much smaller pool of buyers.

I suspect I've found it on Rightmove.....is it also awaiting a cladding inspection for fire safety?

It’s still the price.There might be reduced demand, but if the price was low enough to reflect that then someone would still buy.

£340 a month service charge doesn't sound bad to me. I have a 2-bed flat in manchester that's £240 a month with no communal garden.

Similar - I have a 2 bed in the NW (not in a big city) and have a small private garden but no shared. £240pm. No lift or anything or facilities

Thanks for bumping. Yeah it’s pretty dire when the best communal feature about the property is the shared garden!

It’s in Colindale, North West London. Good transport links.

No we’ve already had cladding remidiation works a few years ago.

I sold my shared ownership flat in London about five years ago. My buyer bought my shared ownership flat and staircased up immediately to buy it outright. I’m not sure if this had the effect of reducing the service charge at all, but you might ask if it would.

ive seem some eye watering ones recently 5/600.

Yes I believe this does include a sink fund but not sure of the details. I will post the link for some further advice/suggestions…

https://www.rightmove.co.uk/properties/157403507

That’s quite high for zone 4 is it a fairly new development/ close to the station ?

the charge might just be maxing out their budget or they’ve found something in the same area for a better price.

some 4 beds are going for 600 in Colindale. Have a look on zoopla and see what the price points are for similar properties and if they’re selling

I may be missing it (it’s late!) but there is nothing in the ad that jumps out about shared ownership.
Are people looking at the listing and maybe even viewing the property on the basis that they are buying the whole thing? Is the price for a share or for the whole property?

I’d make it clear on the estate agent listing what the service charge pays for. If it’s more than the communal garden, building maintenance, window cleaning, car park maintenance/security etc?
The gardens don’t actually appear to be that well maintained eg pretty in the picture, have they improved since the photos?

hope it sells soon.