19th November 2016
We had agreed a deal for a two bedroom flat in W1 with a shortish lease of 55 years, or at least we thought we had. The property is on the fourth floor of a purpose-built apartment block, which I didn’t know even existed until this flat came up, as it’s tucked away in a small square with commercial all around the ground floor. With a lease extension costing £150k and a makeover of around £75k, the property would be worth around £1.1m.
It’s a deal, hence I was pursuing it having completed one deal with the agent only recently. We were confident of receiving the contracts, however, days went ticking by and every time I checked in I was told the owner is taking his time and the contract will be coming in shortly.
However, on meeting a contact yesterday I discovered he was sitting on the contract, and had received it from a runner he uses. Small world; this shows the importance of having several sources in the market and to keep networking.
So the deal will be done, not through the agent who alerted us, but through the source who delivered. The fact that this same deal was spotted and closed by an associate shows how few deals come to the surface, for someone who’s networked in the area and keeps the network alive by steady buying, somehow or another deals keep finding their way to the buying source. This time we were second in the race; not to worry as we will simply jump on and piggyback on the front runner to the deal.
Contracts are in, and there’s a deal to be done.
Another deal which has also come up, is a small deal in Finchley, going for a ridiculous amount, £350k, at 1,000 sq. ft., this equates to £350 per sq. ft. On first hearing about the deal I assumed at this price it must be located on the north side of the North Circular road, as Finchley Road is a long road, and properties closer to Finchley Road station are more valuable than those situated near Finchley Central. This is located near Finchley Road station close to Hampstead, and so it’s a great deal which comes with the benefit of rent coming in from day one.
There is a small window of opportunity before the new mortgage regulations come in the new year, these will serve to reduce the amount one can borrow by increasing the rental cover which is required on BTL mortgages.
Christmas is coming, this will be a slow time for the property market as most people will be gearing up for the break and getting drunk at Christmas parties, this results in sluggish activity. If a deal is to be done, now is the time to be doing it.
Both these deals are available, we have the contracts in. If you are interested in either one, or both, give us a call before they get snapped up.
Suresh Vagjiani
