Best way to sell a very small studio flat?

by Readers Question

18:11 PM, 5th March 2014
About 7 years ago

Best way to sell a very small studio flat?

Make Text Bigger
Best way to sell a very small studio flat?

Best way to sell a very small studio flat?I want to sell one of my BTL properties, it is a very small studio flat on the outskirts of Uxbridge.

Unless things have changed it maybe difficult to mortgage as it is only 26 square metres and lending criteria was a minimum of 30 sq metres last time I looked into it.

The tenant is moving out in a couple of weeks.

It would sell for about £115,000 and would rent at £650 a month to a private tenant or £733 a month to a tenant claiming benefits. This is because the local council pays the same for a studio as a 1 bed flat.

If you were me, would you:

  1. Market it as as cash buyer only?
  2. Market it with a private tenant in place?
  3. Market it with a benefits tenant in place?
  4. Market it empty?

All suggestions greatly appreciated. Best way to sell a very small studio flat?

Many thanks

Julie

Comments

Mark Alexander

18:19 PM, 5th March 2014
About 7 years ago

Hi Julie

Based on how well things are selling at auction at the moment and how so many people are paying over the odds and are all cash buyers, if I was you I would probably put it with an auction house.

I'd set the guide price at about 20% less than I wanted to get and then set the reserve price at the minimum I would accept.

You mind find that it's a very cheap way to get top dollar very quickly. The auction market really is booming at the moment 🙂

Take a look at this article too >>> http://www.property118.com/auctions-sell-tenanted-properties/40635/

I think I'd try to sell vacant at first, then if you don't get the right price get a good LHA tenant in who can provide a meaningful guarantor who qualifies for an RGI policy, then re-list the property in the next auction.
.

19:47 PM, 5th March 2014
About 7 years ago

Hi Julie,

Can you advise if the flat is within a purpose built block or above commercial property?

A colleague of mine might be interested in purchasing your studio.

He has several properties in the Hillingdon area and he would be a cash buyer. He specialises in buying tenanted properties, short lease properties, and "problem" properties of any nature.

If you want to contact him directly, have a visit of his website:

http://www.dreamhousebuyer.co.uk/

Or email me your contact details and I will connect you.

My email is Vanessawarwick (at) icloud.com

juliet bonnet

21:56 PM, 5th March 2014
About 7 years ago

Reply to the comment left by "Vanessa Warwick" at "05/03/2014 - 19:47":

Thank you both, Mark and Vanessa, for your replies. Very helpful.
Its in a purpose built block of 6 same-size studios, with 90 years lease left, 1st floor, reasonable service charge, and no no expensive lifts to maintain. Good location.
It may be of general interest to know that, according to a local agent who has a buyer for another studio flat in the block, getting a mortgage for studios below 30 sq m in size is do-able again.
And thank you all you LLL(Lovely LandLords who take the time to share your experience and expertise on Property 118)
xx Juliet

22:11 PM, 5th March 2014
About 7 years ago

Thanks Juliet.

I think my colleague would love to hear from you. 🙂

Mark Alexander

7:40 AM, 6th March 2014
About 7 years ago

Reply to the comment left by "Mark Alexander" at "05/03/2014 - 18:19":

Hi Julie

If you do make contact with Vanessa's friend, please report back how you got on as I'm sure other people will find this interesting regardless of the outcome.

Same goes for if you decide to follow up on my suggestions.
.

martin wilkinson

14:13 PM, 8th March 2014
About 7 years ago

Hi Julie,

Selling at auction is a great idea! It would seem likely that your studio has most sale appeal as an investor so maybe it would be best, in the first instance, to try to sell with the tenant in situ (also explaining your thoughts on the Estimated Rental Value). That way you keep your income stream in place and the next owner does not suffer voids or have to pay a letting fee. As an alternative to auction your agent could consider listing on a B2L dedicated property portal such as BUY2LET.com or you could sell it yourself thro' RightyieldUK.

Martin

Maggie Dale

17:07 PM, 8th March 2014
About 7 years ago

Can anyone suggest a mortgage company who will lend on smaller i.e. less than 30 sq m studio flats. I have tried my usual sources to no avail. At this time I do not want to sell because of CGT payments.

Thank you


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER

Post Covid Staycation boom could be taxing