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Purchasing ex local authority property in possible redevelopment area
maxxpayne
Posts: 157 Forumite
Dear MSE Members,
My first post and I need your help!
I have just come back form viewing an ex council property near Earl's Court, in the Borough of Hammersmith & Fulham in London, which I quite liked and would like to put forward an offer to buy.
While talking to the estate agent, the subject of any impending work to be carried out by the council came up and the agent mentioned that plans have been submitted by a 3rd party developer to regenerate the whole of the Earl's Court area, which would possibly mean demolition of the whole council block!
I just searched the net and it turns out the whole project is quite the talk of that part of town and controversial, to say the least. Just a search on Google with 'earls court redevelopment' bring in tons of materials (as a new user I am not allowed to post links!) or see !!!!!!!/wgE9ba
If the plans are approved (and it's a big fight now, between residents, the council and developers), at the best case, work will start in Q1 2015.
In a situation like this, would you advise to buy the property? I was told by the agent that if the flat is demolished, I will get the market value of the property and 10% on top.
Question is, how if the market value determined? For example, the value today maybe 215k, but then I might do work on the property worth another 10k to enhance it's market value? At the same time, the market value could be a less in 5 years time, because people would know by then that the whole block is up for demolition and no one would even think of buying it!
I did search the forum and seems that there is something called CPO (Compulsory Purchase Order) and it maybe that I will fall under it?
Your input would be much appreciated.
Thank you.
My first post and I need your help!
I have just come back form viewing an ex council property near Earl's Court, in the Borough of Hammersmith & Fulham in London, which I quite liked and would like to put forward an offer to buy.
While talking to the estate agent, the subject of any impending work to be carried out by the council came up and the agent mentioned that plans have been submitted by a 3rd party developer to regenerate the whole of the Earl's Court area, which would possibly mean demolition of the whole council block!
I just searched the net and it turns out the whole project is quite the talk of that part of town and controversial, to say the least. Just a search on Google with 'earls court redevelopment' bring in tons of materials (as a new user I am not allowed to post links!) or see !!!!!!!/wgE9ba
If the plans are approved (and it's a big fight now, between residents, the council and developers), at the best case, work will start in Q1 2015.
In a situation like this, would you advise to buy the property? I was told by the agent that if the flat is demolished, I will get the market value of the property and 10% on top.
Question is, how if the market value determined? For example, the value today maybe 215k, but then I might do work on the property worth another 10k to enhance it's market value? At the same time, the market value could be a less in 5 years time, because people would know by then that the whole block is up for demolition and no one would even think of buying it!
I did search the forum and seems that there is something called CPO (Compulsory Purchase Order) and it maybe that I will fall under it?
Your input would be much appreciated.
Thank you.
0
Comments
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Youre asking us if a flat scheduled to be demolished is a good buy?0
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"I was told by the agent that if the flat is demolished, I will get the market value of the property and 10% on top."
He's an agent, believe nothing he tells you as it is BS. You will get market value (based on its value in the 'no scheme World') and disturbance compensation. You may not get a mortgage on such a property.0 -
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My local authority are in the process of buying back some leasehold flats in a block that is going to be demolished. They are offering market value (valued by a professional), plus 10% homeless payment, plus a disturbance payment (up to £5k).0
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carefullycautious wrote: »:rotfl:
I never cease to be amazed
Depending on how much you can beat the seller down by, it can end up being a good deal.0
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