Tag Archives: auction property

The Illegal Flat In Streatham!

3 Aug

Today I went to see a 2 bed flat in Streatham which was just a few minutes walk from the common. It was a lovely road – well more like an avenue – it was wide and tree lined. Residential and felt good. The flat was a victorian conversion and I saw the house from the road. It looked in OK condition – a bit tired around the edges.

I let myself in the back gate so that I could check out the rear and work out which flat was for sale (it wasn’t a viewing day but as I was in the area thought I would do a rece). Having just let myself in I was confronted by a young lady holding a baby who was just a few days old. I apologised profusely that I had let myself in the back garden and explained that I had seen the flat up for auction and that I was coming to take a look. Well she was lovely – she told me all about the area, the building and the reasons for sale…the extension which the flat had been built in had been built illegally and now the owner had been served an enforcement notice!

Turns out the flat was actually a 3 bed (though it had been listed as a 2 bed) and the enforcement officers had said it had to be part demolished as it contravened planning and building regs. As the extension was also built on the neighbouring property (where that flat was also for sale) I knew then that I would have to buy both to make the project viable…but I didn’t have the money for both. So I called my friend Nick who’s a fellow property developer.

Nick came along 20 mins later surveyed the building and agreed with me that we had to buy both – and there may be an opportunity.

So we agreed that we would read the legal pack the next day and bash heads…well 60 pages of legal and council jargon later I realised the project was a non starter. Basically the only way of making the project viable was to demolish the lot (which was only about 5 years old) and to start again! Which means all you were buying was a plot with planning issues – and at the guide price made no sense!

Oh well it was a nice day out in sunny Streatham all the same!

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Today I had a lucky escape – read the legals!

30 Jul

Today I was again reminded of the importance  of doing your homework. I have been umming and arrhing about what to buy at auction and having viewed loads of properties in London and checking the values I finally decided I didn’t like the London flats that much and decided on a cheapie flat in Shrewsbury.

It wasn’t really an area I knew much about, but the figures made sense – guide of 33k against an end value of c. 60k and a rent of £300-325pcm meaning double digit yields.  I decided at the last minute to go to auction and buy it – but just before I left I thought I better take a quick look through the legals. All looked in order apart from a paragraph in the lease which I didn’t fully understand…not wanting to take a chance I emailed it to my solicitors to get them to explain it to me.

The auction was about to start so I raced to the train station. 5 mins into my train journey my solicitor called and told me what the paragraph meant “If you buy that flat you have to live in it – you can’t rent it out”. Shit – I was about to buy it for the double digit yield! Not only would it impact me, but it would also have an impact on the resale as I thought it may appeal to another investor when the time came to sell – but this would cut out a huge part of the market.

Bugger I was now on the train but with nothing to buy…and I didn’t trust myself to go to auction and not buy anything! Then I remembered there was a viewing for a property that I liked in an auction next week – so I jumped off the train at the next station, raced home got the car and made it into North London just in time to see a lovely flat – now on my hit list!

Having just checked the results for the flat in Shrewsbury it sold for just £32k…great price as long as the buyer intends to live there!

My Kettering Quandry!

23 Jul

Today I was driving back from North to South and while on the A14 remembered there was a place going to auction in Kettering. As it was just a quick diversion I thought I would do a drive by. 

The property was a 2 bed terrace which was listed as a sale by mortgagees NOT in possession. That means they have the power of sale (as the person hasn’t paid the mortgage) but they have not actually evicted the owner or changed the locks…which means they don’t know if the property is occupied or not! Importantly, it also means there will be NO internal viewings as they do not have access.

It was a street close to town and looked in good condition.

I decided that I should check out the back. In retrospect, me on my own at 8 o’ clock at night going down a back alley and climbing over the garden wall may not have been the best idea….I managed to get some pics through the window of the kitchen. It looked pretty new…

Then I was looking through the dining room indow and suddenly I saw what appeared to be a sleeping bag S***!  Was the property lived in??!!

I made a sharp exit – bearing in mind I didn’t know if the property was occupied and I was currently in the back yard.

I still needed to know if the property was occupied so I knocked on the neighbours door and got chatting. She was lovely and invited me in to see the layout of her property. She was very helpful and made my mind up that I would bid for the property…

But I got outbid 😦

Today I am in Stylist Magazine!!!

21 Jul

I would tell you I love the article/ picture – but I have no idea I have not seen it yet!! I know that I am recieving huge amounts of emails from people asking for jobs, telling me about their expertise and asking for my help. I am absolutely chuffed to inspire someone enough to even bother to email me 🙂

UPDATE: I have now recieved a link it is on page 14 & 15: http://issue.stylist.co.uk/1W4c459edaecdbe012.cde

As I like to include pics – here’s the site where the photo shoot was done (this site was kindly organised for me by Peter @ Property Owl)