Have I Got A Good Deal

Discussion in 'General Property Investment Discussion' started by Anon Private, Jun 7, 2018.

  1. Anon Private

    Anon Private Member

    Hello,

    I need some advice regarding making an offer on a flat.

    The flat was on sale for £225,000, but was later reduced to £215,000.

    I made on offer of £198,750, which was rejected. The estate agent has indicated that an offer close to £205,000 might secure the flat.

    I don't want to be seen as a time waster, because I like the flat. Should I simply offer £205,000, or make a lower offer. If the latter, how much higher than my offer would be seen reasonable, and not make me look like a time waster.

    The lease will have included, at the time of sale, a ground rent buyout ensuring that the doubling of ground rent every ten years is replaced by an increase in line with inflation (highly adventageous). The flat was sold previously for £225,000, but the buyer withdrew because of the ground rent doubling every ten-years. I have been assured that this clause will be replaced.

    There appeaers to be no one else interested (at present).

    Let me know what you think

    Regards

    Ps UK resident
     
  2. realdeals

    realdeals Member

    You have two options:-

    Pay the reduced asking price
    Ask to split the difference between your latest offer and the reduced asking price

    It really does come down to how much you want the property because in the long term, although every pound saved is useful, would you want to lose it for just a few thousand pounds?
     
  3. nmb

    nmb Well-Known Member

    In the current economic environment it is likely that prices will soften in the short term - are you in a rush to buy?

    I am not suggesting there is not long term value but in the short term we may see prices come under more pressure.
     
  4. Anon Private

    Anon Private Member

    Thank you.

    I have made an offer and it has been accepted.

    I am now considering surveyors and solicitors.

    Regarding solicitors. I am wondering why the conveyancing process takes so long. I have asked a firm and they say each case is unique and it depends upon the length of the chain. They said that typically it takes 8-12 weeks. I have never bought a property before, but it sounds like a long time.
     
  5. Longterminvestor

    Longterminvestor Active Member

    Apparently it is all done to a strict code of practice issued by RICS (Royal Institute of Chartered Surveyors) so its just a case of holding on. Better to be safe than sorry although personally 8 - 12 weeks does seem a little long.
     
  6. Anon Private

    Anon Private Member

    8-12 weeks seems typical.

    I am also surprised at how much the conveyancing process costs. Solictors' fees. of course. take up most of the expense. It seems to me a lot of money for little work
     
  7. Anon Private

    Anon Private Member

    Rgarding online conveyancers.

    I have not seen the lease. The estate agent does not have a copy. But the solicitor will have a copy. In the case of online conveyancing how will I see the lease, and how can it be discussed?

    Thanks
     
  8. Longterminvestor

    Longterminvestor Active Member

  9. Anon Private

    Anon Private Member

    Thank you.

    A useful link

    Regards
     
  10. Anon Private

    Anon Private Member

    Out of interest, if I use a conventional solicitior will I be given a copy of the lease to read and then discuss with the legal advisor.
     
  11. SteveK

    SteveK New Member

    You should always make sure you read and understand the lease, demand to see it even if not offered. This will ultimately determine the value of your investment.

    A lease that disallows subletting would make for a very bad investment.
     
  12. Anon Private

    Anon Private Member

    I would presumably see the lease at the solicitor stage.
    I am buying the flat for myself, as a place live. I am not interested in subletting
     
  13. SteveK

    SteveK New Member

    Circumstances can change and if you ever wanted to sell the flat you would be limiting your potential buyers to owner occupiers.

    However, this may be of no consequence at all if the area has little rental demand.
     
  14. diyhelp

    diyhelp Active Member

    I agree with @SteveK

    Also, I dont understand why they are not making the details of the lease available to you - what is hidden in the small print?
     
  15. Anon Private

    Anon Private Member

    First, subletting is allowed.

    Second, there is no mystery, the lease will be available to the solicitor, where it will be discussed. The estate agent does not have a copy. I doubt if there is any small print
     
  16. diyhelp

    diyhelp Active Member

    A lot of people are starting to use online property services where in theory the costs are lower - but do you get the same standard of service or is this a false saving? I would be interested to hear from anyone who has used these cheap services - I doubt they can all be bad, similar to crowd funding services where costs are slashed and the middle man is erased.
     
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