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  • Deal Finding

    10 tips for spotting property deals others might have missed.

    I've compiled a few tips for spotting bargain properties that others may have missed:

    1. Properties with short leases.

    Most lenders are nervous about lending on properties with short leases. Under 80 years is a rough guideline of where worries start to occur.

    Using the FREE Property Tribes Lease Extension calculator, you can work out how much it might cost to extend a lease.

    Properties with short leases often appear at auction. Check the auction pack on leasehold properties with low guide prices, as this may be the reason.

    2. Problem properties.

    These might have issues that make them un-mortgageable like Japanese Knotweed, located next to a mine shaft, have subsidence, been under-pinned etc.

    Ring estate agents and ask them if they have any "problem properties" that are sticking on their books.

    3. Properties with tenants in suit including property let on regulated, assured, life, assured shorthold or any other non-specific tenancy.

    I don't know much about this, but I am sure that they are not that attractive to "vanilla" BTL'ers and lenders who generally prefer vacant possession on completion.

    4. Properties that have had additions without planning consent.

    5. Properties in need of major refurbishment - force the appreciation.

    Property Tribes RepoList is the U.K.'s largest real time database of refurbishment, repossession, and auction properties.

    6. Properties that are dirty and smelly.

    Related reading: Where there's (property muck, there's money.

    If there is damp and mould, this can be rectified for less than £150.00 using a device like Nuaire.

    7. Properties that have been on the market for a long time.

    Use Property Snake to see which properties have been on the market a long time and prices are being reduced. There will be a reason for this, so find it out and work out what it will cost to correct it.

    8. Properties where the vendor needs a quick sale.

    One sign of this is that the property is listed with multiple agents.

    You need to make the distinction between a "distressed" seller and a "motivated" seller.

    9. Properties close to stamp duty thresholds.

    A property at £275K has the strong chance to be negotiated down to under £250K.

    10. Properties with development potential.

    See potential others may have missed.

    A friend of mine is developing a bungalow in Pett Level, East Sussex. By adding a second storey and turning it into an upsidedown house, the property will acquire amazing sea views, which always attract a premium.

    I hope others will add to this to make it a great community generated resource.
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    This is very topical for me Vanessa as I am out there looking for a 2-3 more rental properties.

    Have been looking at repossessions/executors sales and strange conversions. I am attracted more to the ones that are smelly or need work doing to them in fact anything that puts other people off. In my area properties are coming on the market and being snapped up very quickly mainly by other landlords.

    Made an offer on one on Thursday (executors sale ) and another landlord came in with a higher offer, I am not going to offer any more as it needs rewiring/central heating so a higher purchase price will not work. One that has caught my eye has a strange third floor bedroom that has been added. It was large enough for a double bed but with a sloping roof and velux windows it began to feel a bit like a coffin.

    I am also not certain it is traditional construction, estate agent finding out. I also love a very tatty garden, uneven paving, sheds falling down again anything that puts other people off. I really must get out more!!

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    I once bought a renovation project that was next door to the most horrific property!

    The property I bought just needed a good tart up and bathroom moving upstairs, but the neighboring property had put off lots of potential purchasers. We took a gamble and got the house for a great price.

    By the time we came to sell, the neighboring house was well on it's way to being repossessed, so incoming buyers weren't worried about the condition of the property next door.

    Great buy, but now I look back, we were lucky with the house next door being repossessed as it could have effected our ability to sell!

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    Thanks Eleanor.

    "Moving the bathroom upstairs" is a great addition.

    People expect it now and a downstairs loo seems very old-fashioned.
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    Hi Vanessa,

    I take it you meant downstairs bathrooms are very old fashioned; downstairs loo (cloakroom) is pretty much a must have
    in newer proerties nowadays is it not?

    KR

    Steve
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    Sorry ... blonde & senior moment ... I meant downstairs bathroom. Smile

    A downstairs loo/cloakroom is standard these days, although I have recently seen some new builds with the toilet located off the kitchen, which I did find a bit odd.
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    Useful article here from Homebuilding and Renovating magazine about how to assess the potential of a property.

    Here are their key points:

    Could you extend?

    Could you transform an ugly exterior?

    Can you create off-road parking?

    Is there potential for a loft conversion?

    Could you remodel?

    Is there scope for further development?

    Read the full article for more detail >>> here.

    [Image: house.png]Related information:

    Infographic about the cost of adding value to a property
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    The following things are apparently the top 10 things that de-value a residental (owner/occupier) property.

    Thinking laterally, these might be indicators for a deal, as a rental property does not need to meet the same criteria as an end user property.

    1. Cluttered children's bedrooms

    2. Anti social neighbours

    3. Noisy pub nearby.

    4. Wind farm

    5. Electricity pylons.

    6. Railway at the bottom of the garden/tube line passing by.

    7. Bad OFSTED report.

    8. Flood risk

    9. Pebbledash

    10. UPVC windows.

    [Image: house.png]Related discussion:

    Criteria of person looking to rent vs. criteria of person looking to buy
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    This house, officially uninhabitable, was guided at £25K and recently sold for £33.5K at auction! Smile

    [Image: _68391803_housenewswns.jpg]

    It had great sea views!! The auctioneer said the land had "investment potential".

    If not on the cliff, the house would have been worth £400K.

    I wonder what potential the buyer saw in it?
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    (12-07-2013 08:58 AM)vanessa warwick Wrote:  I wonder what potential the buyer saw in it?

    location location location.

    i wonder what the legal definition of uninhabitable means and what would be the legal repercussions if you chose to ignore that definition
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    Jonathan Clarke. http://www.buytoletmk.com