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Having been dumb enough to buy a place with a couple of similar bodges in place (that I didn't spot), I would urge you to do the ethical thing.
However, it sometimes seems in property that you get buyers trying to negotiate you down for things even if you have adjusted for them in the asking price.
So I suppose my quasi-ethical strategy would be this - set the asking price for the flat as if it didn't need the kitchen doing, and make the flat look nice for he photos. Then when you have a buyer on the hook, give them hints about the kitchen and be prepared to let them negotiate you down.
That way they feel like they've won when you accept their price chip, plus you don't pay twice for the kitchen works or alternatively feel like a dick for not disclosing it.
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NickCJ
We are selling out flat soon, but our kitchen has half the doors off the cupboards (the doors are fine, but the carcass they attach to is shite and the hinges tore out)
I am going to put a dowel down the side and drill through and make it work (bodge of the highest order, that will probably not last too long) now the ethical thing is to tell any prospective buyers that the kitchen needs refitting but we are concious of losing £££ on the sale price. The bathroom is also dated, so there is scope for them to barter on the price, if they are inclined.
Tl;Dr do I tell buyers that the kitchen is shit or let them find out after buying it?