How To Sell an Auckland Apartment That's Still under a Lease

Apartment Specialists Podcast No: 79

Summary:

Selling an Auckland apartment under a lease or hotel lease is relatively worthless, but there are situations when you really need to sell your apartment. In this podcast, Andrew Murray will show you the steps that you need to take when you plan to sell an apartment that is still in a lease. Get all the facts and more from this podcast.

TRANSCRIPTION:

Good day, Andrew Murray from Apartment Specialists. Today we're talking about Auckland apartment sales and specifically, what happens if you can't get your Auckland apartment out of its lease or its hotel lease. How do you sell it? We all know if an apartment is in a hotel lease, it's worthless. But let's face it, there are situations where you have to sell your apartment. If you have to sell it, well, because it's in a lease and you can't get it out, you can't change that, so what do you do? The problem is, apartments are worth less when you sell them in a lease compared to when you're out.

The reason why is, you can't sell it to an owner-occupier, so that's an emotional purchase, so, a person can fall in love with the apartment and pay more. Or, when it's in a lease and then in every case I've come across, you receive less income than you are if you were renting it to a student, a family, or a professional, so it's worth less again. So, if you have to sell your apartment and it is in a lease, there's a way you can do it to get as close as you can to that value of what it would be worth if it was out of the lease. And you're selling it as a long term investment. What you're doing is, you're selling it at the lowest return possible.

Whatever the mortgage rate is at the time, you're selling it at that basically or less. So basically the new purchaser will just be having that as a.., but knowing in the long term there will be a little bit of capital gain when it comes out. So you're raising that bar as much as you can. You have to realise if you are an owner, sorry, you need to do your very best to get it out of that lease, and if you can't, you're going to have to accept it that your apartment is worth less, and it's minimising that loss as much as you can. So you can upsell it, and you can get very close, but unfortunately there's not much you can do to get the true value unless you can get it out.

I can talk with anybody specifically on their apartment if they're in that situation, on how you can get as close as you can possible, or how there are different ways you can get out of leases. Sometimes there's some technicalities, that means you can get out. I'm happy to read through your original apartment lease for you if needed. I hope that gives you a bit of an idea, and I look forward to talking to you next week.

Cheers!