Studio for sale BUT only for cash buyers?

thequant

tigsly wrote: »

the room is 16 x 13 so you could fit the 2 doubles that i saw - (2 doubles and a sofa?!)

yeah there's only 2 beds, but something strange, the furniture has been moved round between photos, the bed have had change of covers, and then the covers removed.


I get the impression that whoever buys this will be dealing with debt collectors chasing various people with foreign sounding names for some time.

Snakey

There is no way that Foxton's don't know why the seller is insisting on a cash buyer.

But yes, everyone else is right - "cash buyers only" doesn't mean you turn up to some dodgy industrial estate at midnight with suitcases full of used notes. The money transfer is always done through banks, by solicitors, whether the funds come from your savings or from a mortgage lender. It's short for "people who won't be needing to get a mortgage", which in turn generally means "because there's no chance that you'll get one on this property, mate".

There are no bargains to be had in the open market. Central London has so many buyers chasing so few properties, and Zoopla/Foxtons is about as non-obscure as you can get! If something looks cheap for what it is, find out why.

Things that generally scupper a mortgage altogether:
1. Short lease
2. Certain type of concrete construction
3. Something seriously structurally wrong with the building that would show up on even the most casual mortgage valuation survey.

Things that make it harder to get a mortgage, although not impossible, the more boxes you tick the harder it gets to find a lender willing to accommodate you:
1. High floor (5th is a typical cut-off)
2. Ex-council
3. Studio flat

Again, there is no way Foxton's don't know what the story is here.

makeyourdaddyproud

High Floor? That wouldn't be a reason at all, there are 100's of 5 floor plus flats being up at any time of the year in the country. Just look at London...

Snakey

Not all lenders like high-rise blocks. I looked in to making an offer on an 8th floor flat and I was told that it would restrict the number of lenders I could go with.

Annie1960

slimg wrote: »

The agent at Foxtons she didnt remember the lease but she said she was sure it was nothing too short...

This is very vague and woolly.

The question you need to ask is: 'how long is the lease?' The answer should be a number, not narrative.

You also need to ask directly 'Why is it advertised for a cash buyer?'

Ask these specific questions and see what the answers are.

seasideme

thequant wrote: »

How many beds in that room ? If I'm not mistaken, I count 3 double beds in a studio flat!!!

I think they are showing 2 different layouts

slimg

eddddy wrote: »

Hi slimg

Is it this one, by any chance?
http://www.zoopla.co.uk/for-sale/details/30943234


If so, it looks like it's an ex-local authority, 5th floor studio. So it will be very difficult, if not impossible to get a mortgage.

It looks like it went on the market at £300k in October 2013 and it's now down to £250k.

They've probably had other buyers drop out who needed a mortgage, because they couldn't get one. So they're now insisting on a cash buyer.

Spot on! that's exactly the studio I was talking about. It's actually listed in Foxtons and 2 other estate agents but it may be different studios in the same building?

Anyway, yeah the lady at Foxtons she was really vague and I have to say Im not the best person to deal with these things....

I would really love to put my hands on that studio but the price is way too cheaper for the location...how can I find out if there is something messed up with the studio? Any suggestions? I wont rely on Foxtons since they only interested to sell properties....I dont know even if I have to pay someone who would be the best contact for this case?
Any advice would be much appreciated

bouicca21

Simples. It's on the 5th floor of an LA concrete block. Very few mortgage lenders will consider it. They usually want LA blocks to be brick and only 4 stories. Plus have something like 50% owner occupied. The EA knows this full well.

slimg

To be honest the mortgage is the last of my worries...As i mentioned 100K is ready...and the rest 150K I will ask my brothers to lend me. Then I will get a mortgage to pay my relatives back.

Is it a bad investment to get a concrete block?
What's that "50% owner occupied" means?

Mallotum_X

250k for a studio, in an ex council block... seriously thats just nuts