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peter1000
Posts: 74 Forumite
I have seen to flats coming up at auction on the kent coast,it is a large semi detatched house,both one bed flats are on the first floor with one having a balcony,both are to be sold with a new 125 year lease.£60-64 k guide price is it a risky venture buying flats?
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I have seen to flats coming up at auction on the kent coast,it is a large semi detatched house,both one bed flats are on the first floor with one having a balcony,both are to be sold with a new 125 year lease.£60-64 k guide price is it a risky venture buying flats?
The risk is buying at auction. Do some searches on the forum, there are plenty of threads with posters explaining at length why this is, but in a nutshell, remember that property being sold at auction almost always has a reason it can't be sold through an EA in the normal way. You'll need a good solicitor and surveyor to help you figure out what that reason is, and only once you've found it will you know if you can work with it or whether you need to walk away.
Also think about financing: The moment the hammer falls, you have entered into a binding contract which you must complete on within the timeframe set by the auction house (usually 28 days I believe). If you are not able to do so for any reason, you will be liable for breach of contract, and they will not hesitate to pursue you to the full extent possible. People can bankrupt themselves making unwise auction purchases.0 -
is it a risky venture buying flats?
But do you understand property auctions? Properties are sold at auction for a reason: unmorgagable for some reason; structurally unsound; short leases; strange covenants etc
You must investigate fully (which may cost you money) before the auction because if you bid, and win, it will bt too late to back out.0 -
I have seen to flats coming up at auction on the kent coast,it is a large semi detatched house,both one bed flats are on the first floor with one having a balcony,both are to be sold with a new 125 year lease.£60-64 k guide price is it a risky venture buying flats?
Just out of interest, is it these two:
http://www.rightmove.co.uk/property-for-sale/property-34750998.html
http://www.rightmove.co.uk/property-for-sale/property-34750989.html
It looks to me like they may not have proper bathrooms (a shower cubicle in the bedroom instead) - so I doubt they will ever be mortgageable.
The local council has made the area a selective licensing area "to help tackle low housing demand and anti-social behaviour, and is part of the council’s wider regeneration activities in Margate."
Flats in that building have previously been advertised to rent as "No deposit required! The landlord is happy to accept housing benefit applicants with a homeowner guarantor"
See: http://www.zoopla.co.uk/property-history/23-surrey-road/cliftonville/margate/ct9-2jr/25031883
http://www.zoopla.co.uk/property-history/23-surrey-road/cliftonville/margate/ct9-2jr/31936972
(Also, it looks like the whole building is being advertised for sale, if you want all 7 of the flats instead: http://www.rightmove.co.uk/property-for-sale/property-46646990.html )
Good luck!0
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