6th May 2017
Last week we managed to exchange on a property, in Hatherley Grove, W2, with a longish four month completion. The seller tried to stick in a cheeky clause whereby they could complete early at their discretion, as opposed to the agreed completion time period. This is often typical of deals, either party tries to push in clauses which favour them, in the hope the other party’s desperation to do the deal will be the overriding factor. Not so in this case, we held our stance and in the end the seller folded and kept to the original agreed terms.
The reasons for the delay in completion, is twofold, one is to submit planning for a mansard and the other is to sell the property on without having to complete once the planning has been submitted. This looks plausible.
The property is 700 sq. ft. and has the potential to add another 300 sq. ft. at least, this is expected to increase the value to £1.1m from a purchase price of £700k.
This deal was presented to a number of investors. One party viewed the property twice, and then tried to impose their terms on the deal, which included a last minute switching of solicitor and reducing our fees.
This wasn’t really going to happen; I could have sold this deal on three times over, and so it was swiftly placed with another party on the same day who purchased it without seeing it. I’m quietly hopeful this deal will yield a plentiful harvest with the right manoeuvring.
We have just put another property under offer in the prime part of Notting Hill, the deal had 6 offers on it within a week. This demonstrates, regardless of the market conditions, there is always money seeking good stock, and this one is a real gem. It’s opposite one of the most expensive roads in Central London, Kensington Palace Gardens, where the average price of a property is £36m. However, our humble flat is only £550k, it comes with a 999 year lease and is in a very quiet road given the busy location. It is a probate deal, and hence requires a light refurbishment.
Our clients who agreed this deal have a retail business, and have a commercial property portfolio, however, they now wish to venture into residential property. Now is a good time to come in, when you can afford to choose the best proprieties. When the market is rising high any kind of property will sell, as everyone is jumping on the bandwagon. This is the herd mentality, which many species including humans tend to move in.
A property which we will be launching this week, is a two bedroom apartment with a long lease and a service charge of merely £600 per annum. This is exceptionally cheap given this charge includes buildings insurance. The location is off Church Street, NW8, an area which has been seen to be the poor part of Central London, but which is now set for massive capital growth. It’s an ex-council property and requires work, I would estimate about £15k. The property is priced at £400,000; you would be hard pressed to find anything in this location for this price, let alone a two bedroom flat. This deal is looking for a buyer, so do get in touch if you are interested.