Selling your flat to the council is a good option for some homeowners.
However, before going down this route, weighing the pros and is crucial.
In this blog, we’ll explore the advantages and disadvantages of selling your flat to the council and highlight some of the main points you should consider before doing so.
How to Sell Your Flat to the Council
Council and social housing stock are low these days. There is not often enough property to go around compared to the people who need housing.
This means that some councils may be able to purchase private homes to make available as council property.
On the other hand, funding for local governments has been reduced in recent years. This has significantly impacted what local councils can do when it comes to purchasing and developing new properties.
Step one: contact your local council
Since funding and spending can vary between local authorities and policies can differ between different councils, it’s best to get in touch with the relevant department of your local council to get a more accurate answer to this question.
In other words, if you want to find out if it’s possible to sell your flat to your local council, the first step is to contact your local council’s housing department or development team.
Pros of selling my flat to the council
If you can sell your flat to the council, there are many advantages to doing so. These include:
A guaranteed sale
If your local council agrees to buy your flat, you should be guaranteed a sale.
You can reduce the many difficulties associated with selling a flat. This includes skipping finding a buyer or dealing with the uncertainty of putting your flat up for sale on the open market.
Fair market value
The council should pay you the fair market value for your flat. This means that you should always get a reasonable price for your property. This can be reassuring if you are not sure about the property’s value.
No estate agent fees
When selling your flat to the council, you will not have to pay estate agent fees. Ultimately, this can help you save thousands of pounds on the sale.
Quick sale
It can sometimes take a long time to sell a flat.
If you want a speedy sale process, selling your flat to the council can be ideal.
It is typically faster than selling through an estate agent and advertising your flat on the open market. You will not have to wait for potential buyers, negotiate with buyers, or deal with as much legal paperwork.
Cons of selling my flat to the council
There are benefits and drawbacks to selling your flat to anyone, including with the council. Some of the main disadvantages of taking this latter route include the following:
Limited negotiation
You will have limited negotiation power when you sell your flat to the council. They will determine the fair market value of your property, not you.
Ultimately, in some circumstances this could lead to you selling your flat for less than you expect it to sell for on the open market.
Limited control
When selling your flat to the council, you do not have any control over the sale timeline. In most cases, your local council will set the timeline for the purchase, and you’ll need to adhere to it.
Things to consider when selling a flat to the council
Before you decide to sell your flat to the council, there are a few things to consider:
1. Market value
It’s important research the market value of your flat before you agree to a sale.
This can help you determine if the council’s offer is fair. If it is much lower than you expected, then you might decide it is worth waiting for a private buyer.
2. Timeline
Make sure you are comfortable with the timeframe the council sets for the purchase. Consider other options if you are not happy with how long the sale will take.
3. Financial implications
You may need to think about how selling your flat the council might impact you financially.
For example, if you have an outstanding mortgage on the flat, you may need to pay it off when you sell your property to the council. Additionally, you may be liable to pay capital gains tax if you make a profit on the sale.
4. Alternative options
Consider some alternatives to decide whether selling your flat to the council is right for you.
For example, you could sell to a private buyer on the open market, sell your flat to a cash buyer, or rent it out.
Sell your flat with We Buy Any Home
We Buy Any Home are chain-free cash house buyers who can purchase your property up-front and quickly, without hassle or stress. You are in the perfect place to sell your council flat.
Using our own funds, we will purchase your property at a set price, by a date of your choosing, fully managed from beginning to end.
Any location, any condition, we buy any house. We can provide you with an offer for your UK property – Cardiff to Clyde, Durham to Dover.
Our specialist team have helped assist thousands of people to a quick and stress-free house sale. Fill in our enquiry form below if you are interested in getting a cash offer for your property.
