The property market is ever-evolving. From renting your spare room to sharing your garage, there are various ways for homeowners and renters to boost their income in 2023.
If you live in a city centre or other areas where parking is scarce, selling your parking space may be an option worth considering. In this guide, we will explore everything you need to know before putting your flat’s parking space up for sale.
The short answer to this question is: it depends.
Firstly, you should check the terms of your lease or freehold agreement to see if you have the right to sell your parking space. Some agreements may prohibit you from selling your parking space or require you to seek permission from the management company, landlord or freeholder before doing so.
Another factor to consider is whether the parking space is allocated solely to your flat or is a shared space with other residents. If it is a shared space, you may need to get an agreement from the other residents before you can sell your space.
The value of your parking space will depend on a number of factors, including location, demand and competition. For example, the average cost of a parking space is more than £100,000 in half of London’s boroughs. This is more than the average property cost in other areas.
You will need to consider the demand for parking in your area. If there is a shortage of parking spaces and demand is high, you may be able to sell your parking space for a good price. However, if parking is in abundance, you may struggle to find a buyer or will have to sell at a lower price than you hoped for.
To get an idea of how much your parking space is worth, you can check online property listing websites such as RightMove, or you can speak to local estate agents. Some estate agents may offer a free valuation service, which can give you an idea of the potential value of your parking space.
It’s also important to consider any additional costs that may be associated with selling your parking space, such as legal fees or marketing costs. These can eat into your profits, so it’s important to factor them in when calculating the potential value of your parking space.
If you’re happy with the potential figure your parking spot could fetch, there are some final pros and cons to weigh up before putting it on the market.
- Additional income: As we’ve covered, depending on where you live and the demand for parking in your area, you could potentially earn a significant amount from the sale.
- Good deed: Selling your parking space can also be a good option if you don’t have a car or don’t need a dedicated parking spot. In this case, the space may be going to waste, so selling it could be a big help to someone going without.
- Free up the cash: Selling your parking space could be a good option if you want to move to a new area. If it’s not included with your property and you don’t need it at your new home, selling it could be a good way to free up some extra cash.
- Difficult to park: One of the biggest cons of selling your parking space is that it could make it more difficult to park your own car. If you currently use the space yourself, you’ll need to find alternative parking arrangements, which could be more expensive or less convenient than having a dedicated spot.
- Harder to sell: Another potential disadvantage of selling your parking space is that it could make your flat less attractive to certain buyers. Just because you don’t need the parking space, doesn’t mean future buys won’t. if you live in an area where parking is in high demand, potential buyers may be put off by the fact that the property doesn’t come with a dedicated parking spot.
- If you need another one: It’s also worth noting that if you sell your parking space and then decide that you need it again in the future, you may have to go through the process of finding another one, which could be more costly in the future.
- Neighbours: It’s important to consider the potential impact on your neighbours if you sell your parking space. In some cases, your neighbours may have the right to object to the sale if it’s part of a communal area, so it’s important to check your lease agreement or title deeds before making any decisions.
- Tax: you should be aware of any tax implications of selling your parking space. You may need to pay capital gains tax on the profits, so it is important to seek advice from a qualified accountant or tax professional.
While selling your parking space may be a good option in the short term, it’s important to consider the implications for the future. If selling the car parking space for your flat doesn’t fit the bill right, you might want to consider renting your parking space. You’ll benefit from the boost in income, without a negative impact on a future sale.
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