Commercial Mortgage/Property Advice in Luton

mizrahman26

Hello and Happy new Year.






I have recently been doing some homework on Residential Buy to Let in Luton (Lu4 and LU2)and have had some great views from the forums on the website.




However i have come across a place in Luton Lu2, high town road with two retail shops and two Flats above on a free hold building which i am in strong need of advice on investing on that specific area and on Commercial mortgage that will be needed for this building??


sorry if its a repeat question, still new to this forum and a newbie on BTL.




I hope someone can help and give me some Commercial BTL advice.


Thank you

rosie383

High Town is the area for prostitution in Luton. I know many people who live down that way and they regularly find clients and pros in their back gardens, doorways etc. Add in to that the discarded needles, syringes and condoms. Speak to any of the business owners on the road and they will tell you the same. Look on the websites of the local papers for more information.

lincroft1710

High Town is a misnomer, it should be Low Town. As rosie says it is not a good area.

mizrahman26

Oh Dear did not know it was that bad, sounds scary.
though this would have been ideal with two flats generating 425 & 450 and both shops generating 575 each, hmm I think I will give this a miss.

Mallotum_X

If the rentals work now in terms of a return, then it depends on whether you are a gambler or not.

The area closest to the station is seeing a number of new flats going up, and there is a master plan to redevelop much of the former industrial land on the South East side of High Town to residential. http://www.luton.gov.uk/Business/Lists/LutonDocuments/PDF/Regeneration/High%20Town%20consultation/High%20Town%20Design%20Code/High%20Town%20East%20Village%20Design%20Codes%20SPD%20lowres-1.pdf

The police and council keep talking about dealing with the prostitution but that seems to be painfully slow.

The Victorian parts of High Town should be a much nicer area than they are, but there is clearly a big gulf between what its like now and what the potential is.

If you buy into the regeneration plans then there is a lot of potential upside. But you need to decide whether the money works on the place now if the regeneration plans do not happen.

For a new BTL LL in Luton, The safe easy areas I would concentrate on are Wigmore (close to Airport strong rental demand, prices have risen quickly recently though), Bramingham, Leagrave Station area (the railway line divides LU3 and LU4), Hospital area - including the Birds Estate (but not nearby Lewsey Farm Estate).

I would avoid Marsh Farm, although rental returns are actually pretty good capital growth will be limited. I would also avoid the small Coverdale Estate in LU4 it generally looks quite good but is very noisy from the Motorway and a long walk to the Station.

Sundon Park (LU3) area seems to rent well but prices seem to be behind areas closer to Leagrave Station.

For straight rental returns Victorian Terraces in Bury Park or 1930 terraces in the Saints area rent well to the Asian communities. Houses are often scruffier in those two areas but rental returns and demand are good.