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I am off to look at an apartment today which from the pictures looks like it has been repossessed. The estate agent told me that they conducted some viewings last week and were doing another group viewing today and they already had some offers submitted.
What attracted me to this apartment was that it needs some renovation work but it is listed at £85,000 and looking at the history other apartments sold last year for £115,000.
I have just looked at the apartment again on rightmove and the listing has been updated with,
"We advise that an offer has been made for the property in the sum of £84,950. Any persons wishing to increase on this offer should notify the estate agents of their best offer prior to exchange of contracts"
Does this mean that anyone can place a higher offer which can be accepted by the seller at any stage prior to the contracts being exchanged? If so the last buy to let property we brought took 6 months to complete.
As there isn’t a chain it’s likely to complete relatively quickly. In theory another late offer could be made but any further offers are likely to be whilst the additional viewings are being made.
I would also want to know the exact lease duration of the other sold properties in the block - as otherwise you cannot do valid price comparison.
When was the block first built?
Thanks for the replies. I have only gone off what previous sold apartments prices are shown on rightmove. Is there a way I can find out what the remaining lease was of those properties when they were sold?
The property has 143 years remaining on its lease. It could get £700 rent minus agent fees , ground rent and service charges which the estate agent will get back to me on.
Would a cash offer make the whole process quicker? I could pay cash, do it up and then take out a buy to let mortgage.
Your planned purchase has a more than adequate lease duration at 143 yrs (though may have been extended before) so if the asking price is favourable versus recent sales they must all have decent duration left.
The danger point is around 80 yrs when marriage value kicks in to make lease extension a lot more expensive (pro rata residual duration).
Service Charge/Ground Rent should be shown in sales particulars - but £700 pcm gross rent suggests you may end up with 7/8% net rental yield - before tax.
That ignores finance costs - with a cash purchase where you could otherwise get close to 2% interest if tying up for 3 to yrs on deposit - that needs deducting from the above estimated yield.
The price also suggests a location where capital growth is not very high...