I have two Croydon flats to sell- advice please

Landlord Discussion
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Hi all.

Struggling to get my head around best course of action here.

I have two tenant-occupied period flats in Croydon.

Will need some cashflow in about a year’s time, so want to sell.

One flat is mortgage free, the other has interest-only mortgage.

Any thoughts on which to sell, or should I put both on? Tenants have been in for several years and are pretty good.

p.s. I paid around £237k for one and £250k for the other in around 2015/16. Any thoughts on why similar period one-beds seem to be the same price ten years later?

thanks

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@Rob22 that was pretty expensive for 1 bed flats in croydon for 2015/16 are they very large or luxurious or in a better location? Or have parking/garden? Or longer lease or low SC?

Try getting up to date valuations (even online ones from Zoopla or rightmove). Croydon flats have had falls in last year as economy has flatlined and generally property hasn’t increased as much as the previous decade- remember austerity from 2008 onwards after finance crisis so less pay rises and less confidence and higher interest rates inc recently for govt to pay for Covid debt, and tougher lending criteria from banks. All made affordability worse for 1st time buyers holding back prices. Now LLs selling off due to RRA too.

Bear in mind that to give notice to sell under s8 needs 4 months notice and if tenants don’t move out you could easily be looking at a further 6-12 months to go through courts and bailiffs to get possession

In terms of which to sell - obv the one with a mortgage may have early repayment penalties. Also depends when mortgage initial term ends (ideally you don’t want to pay new mortgage fees then sell soon after). Also need to decide whether to try to sell with tenants in situ or vacant.

Good luck

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Because Outer London prices have largely flatlined over that period.

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Thanks for those replies.

The mortgage on property 2 is interest only- does this have any bearing on things?

(Forgive lack of acumen here pls!)

thanks

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@Rob22 well if you still have the capital outstanding on the mortgaged property and you sold for less you’d have to find the shortfall

Best