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Empty Property

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  • Empty Property

    Hi all.

    Firstly hello all and hope I'm doing this right.

    I need a little advice or rather confirmation that I may be right. I am in the situation where my mortgage is paid off and thankfully can still live quite comfortably in the present finacial climate. My parents home is now empty and has been on the market for about a year. Innitially it was on the market for £250.000.00 but understandably the price has dropped to the point were myself and my brothers have had an offer of £140.000.00. My question is, as we are not in a situation were we must sell I believe we should hold on even for another year or so to sell (possibly rent in the meantime) rather than take what is quite a low valuation even in todays market. My brothers believe we should sell now as things will only get worse. I would appreciate any views on this.

    Thanks DC

  • #2
    Well, no one knows for sure how long the downturn will last, but current expectations are that it will continue for another year.

    Also, credit markets are completely frozen up at present, so it's increasingly hard for a number of buyers to access mortgages.

    What may be worth considering is a cost-benefit analysis of selling now compared tiwh later, and also consider rental options. After all, do you really need to sell now, during a downturn?


    • #3
      I would look at renting the property, you'll be kicking yourself next year if you could have got more money for it.

      At the end of the day if you don't need to sell don't. Hang on to the property and weather out the storm.



      • #4
        Depending where it is and what the true valuation is, I may have people willing to improve on that price. However beware, if it has been advertised it at a price that is the highest a valuer will put on it.


        • #5
          If I were in your position I would rent it out and wait for the market to recover. I agree with Pippaw you would kick yourself later if you sell now.
          Portugal Property for Sale


          • #6
            What would be the rental income form the property if you let it out? If you know this and had an accurate valuation of the property (if there is such a thing0 you can work out the yield on the property (i.e. how much it is earning in a perecntahe basis).

            This may make holding onto the property look more or less attractive and could influence your decision.
            Worldwide Financial Planning is a specialist independent provider of Large mortgages.


            • #7
              Seven months on from the original query, DC.
              Did you take the advice and put in a paying tenant?

              Without a rental income, you are presumably losing money on some of the ongoing charges, such as council tax (which different authorities levy in different ways on empty houses), insurance premiums (and again it's worth checking whether cover is invalidated if house is unattended - sometimes it is), water rates, and external maintenance costs (if employing anyone to cut lawns, hedges, clean windows, etc)
              Renovation opportunity, 3b det., Carmarthenshire


              • #8
                hold on now there is no market


                • #9
                  Hang on or perhaps bring in some help?

                  I think that you would be cross with yourself further down the line if you sold for such a low price now. Have you had any viewings? Have you thought about bringing in some help? There are companies, who for a small percent of the sale can make an amazing difference in how appealing your property looks to prospective buyers. I used padoflondon when my flat wasnt selling and I was getting insulting offers and it sold in a month.


                  • #10
                    Yeah that is true but you need to be sure how much the market value is and carefully monitor it


                    • #11
                      I would under your circumstances world rent the property out. Especially since you have no mortgage on it.


                      • #12
                        Remember most conventional household insurance policies will not provide cover for buildings that are empty. Ensure that you have adequate insurance cover in place.