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Wait for SSTC to fall through or make an approach?


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A little over a year ago I went to view a 2 bedroom flat.

The flat was bought by an investment company in 1998 for £108k without a mortgage.  The estate agent told me that it was being sold by a bank and the owner (presumably the director of the company) was in Egypt.  It had been on the market since June 2019, with one asking price reduction from £345k to £325k.

The flat was on a lease with 54 years to run and the freehold is owned by a company owned by the owners of the flats.  Because of the short lease the flat is currently unmortgageable and so limited to cash buyers only (like me).  The estate agent said that the company owning the freehold has quoted £54k to extend the lease to 999 years.

Inside the flat was in poor condition but the block appeared well maintained.  It was built in 1973.  It needed complete rewiring, replastering and redecorating.  It needed a new kitchen and bathroom, and I thought at least one of the windows would need replacing.  There is a centralised heating and hot water system.

I offered £240k, to reflect the cost of lease extension and making the flat habitable.  This was rejected and it went SSTC shortly afterwards.  A similar flat with a long lease and in better condition sold for £328 in November 2019.

One year on the flat is still SSTC and it has not appeared in the Land Registry.  I'm wondering whether to approach the agent again with a similar offer or whether my position would not be strong enough if the other sale hasn't completely fallen through.

Thanks to MMR the market for flats like these has been falling nicely in the last year.

Any thoughts?

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One year on the flat is still SSTC and it has not appeared in the Land Registry.  I'm wondering whether to approach the agent again with a similar offer or whether my position would not be strong enough if the other sale hasn't completely fallen through.

I can offer no advice but I would really like to know what the deal is with properties that are stuck at SSTC for months or even years in some cases. Is the property truly still in the process of sale after all this time? Surely the sellers would get annoyed and threaten to put the house back on the market after 6 months of dithering from the buyer?

Similar to you i was refused a viewing because there were 'offers on the table'. That place went SSTC shortly after but has been stuck like this for about 8 months. It's a cash-only purchase and semi-derelict too so presumably no chain to hold things up. I registered my interest in the property but no one has called me back.

How long do these sales take to actually fall through?

  

Edited by sammersmith
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I can offer no advice but I would really like to know what the deal is with properties that are stuck at SSTC for months or even years in some cases. Is the property truly still in the process of sale after all this time? Surely the sellers would get annoyed and threaten to put the house back on the market after 6 months of dithering from the buyer?

Similar to you i was refused a viewing because there were 'offers on the table'. That place went SSTC shortly after but has been stuck like this for about 8 months. It's a cash-only purchase and semi-derelict too so presumably no chain to hold things up. I registered my interest in the property but no one has called me back.

How long do these sales take to actually fall through?

  

I've seen this with kite flyers who don't really need to sell and will tolerate a delay for a sky-high offer.

I've also heard of would-be buyers making an offer which is accepted but then are unable to obtain a mortgage.  The property remains SSTC while the would-be buyers do the rounds of the banks.  I've heard this when the vendor has changed EAs and the disgruntled EA who is not being paid talks to me.  Unfortunately the EA has not changed for the flat I'm interested in so they have no reason to give away the vendor's whole position.

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Pay for the details off  he Land Registry.

Its not a lot of money ~10/20 IIRC.

Get as much info as possible, so you dont approach the agent cold.

Nothing scares an agent than having lots of info.

 

 

 

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Pay for the details off  he Land Registry.

Its not a lot of money ~10/20 IIRC.

Get as much info as possible, so you dont approach the agent cold.

Nothing scares an agent than having lots of info.

 

Good idea.  Allowing for the three month lag in registering, it hadn't sold by August.

I think I'll make that approach.

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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