13th Aug 2016
Only yesterday we got confirmation of another deal being agreed. The property is in the prime neighbourhood of St John’s Wood. It is a probate property which requires modernisation. The property is priced at 25% below what it would be worth developed. It has been agreed at £750,000 which equates to just under £900 per sq. ft.
The deal was agreed on the basis of a quick exchange, and we managed to get this contract on the condition of us being cash buyers. This was what helped us to clinch the deal, rather than it going to the other offers floating around.
It makes no sense to purchase with cash, given you should be able to get a high street mortgage on this property.
Typically, the higher the floor the higher the price. This property is on the fourth floor which should command a premium.
A couple of years ago this deal would have been viewed differently, in that the property could have been potentially done as a buy, develop and resell deal. Given the raft of stamp duty changes and the current market conditions this is no longer a viable option. Higher transactions costs make the market less liquid. Something which could have been developed and resold to end users, giving the government two bites at the stamp duty is no longer a viable proposition, not to mention making more stock available to end users.
Instead this deal is being pitched as a buy and hold proposition, as we are in uncertain times.
It comes with a long lease, and reasonable service charges, given the location and the fact it is a portered block. Whilst going to view it, there was a developer waiting to see the property just after us. Unbeknown to him, the deal was concluded in the property before he even walked in.
We have concluded the deal at £750,000, it is now waiting for a buyer, which given the location and the discount one should appear in the horizon very soon! If you are interested in the deal, then get in touch quickly, before you miss out.
BUY TO LET OPPORTUNITY
Edgware Road, London W2
Purchase Price: £850,000
- Long lease
- Approx. 1,000 sq. ft.
- Concierge/Porter
- 2 Bedrooms 2 Bathrooms 2 Reception Rooms
- Value post renovation expected to be £1.2m
Call us now for more information!
