Why selling a flat takes longer than selling a house

What follows is an argument about selling a leasehold flat, and about where the received version of it stops being true.

The extra party in the transaction

A house sale involves two parties and their conveyancers; a flat sale adds a freeholder or managing agent who is not motivated by your timetable. They supply the management pack containing accounts, insurance details, planned works and answers to standard enquiries.

Fees are charged for this and turnaround is frequently measured in weeks rather than days. Ordering it at the point of listing rather than after an offer is the single largest saving available to a flat seller.

Lease length is a hard number

The remaining term affects value and, below certain thresholds, mortgageability, which narrows your buyer pool. Extension processes exist in many jurisdictions with defined procedures and costs that rise as the term shortens.

On an ordinary week, starting an extension before selling, or serving the relevant notice so a buyer can continue it, can be worth more than it costs. Check the exact remaining term from the lease rather than from memory, since buyers and lenders will.

Service charges are scrutinised

Buyers and lenders look at the level, the trend across recent years and whether a reserve fund exists. Arrears on your account will be identified and must be settled, and a dispute in progress must be disclosed.

In practice, a sharp recent increase invites questions, and having the explanation ready is better than having it discovered. Three years of accounts show a trend that the current year alone conceals.

Major works are the deal-breaker

Consultation notices for large works, or works already committed, transfer a known future bill to whoever owns the flat when it is billed. Buyers will ask, conveyancers will find it, and discovering it late is a renegotiation waiting to happen. Where the amount is known, agreeing who pays it is a negotiation; where it is unknown, it is an obstacle.

Disclose it early and price accordingly rather than hoping the timing works out.

Safety and insurance documentation

Many markets now require documentation on external wall construction, fire safety arrangements and building insurance before a lender will proceed. Obtaining it depends on the freeholder or agent, and where it does not exist the sale can stall indefinitely.

Ask what documentation exists for your building before you market, because the answer determines your realistic timetable. Requirements in this area have changed rapidly in several countries, so check the current position rather than a previous sale experience.

What a seller can control

Order the pack early, settle any arrears, obtain a copy of the lease, and note any consents you needed for alterations. Where you have made changes — flooring, a knocked-through wall, a new bathroom — check whether landlord consent was required and obtain retrospective consent if not.

Give your conveyancer everything at instruction rather than in response to enquiries. These steps do not remove the third party, and they remove the delays that are yours.

The takeaway

Order the management pack the day you list, and check the lease term before you set a price.

Small and repeatable beats ambitious and abandoned, almost every time.