Renovating a complete run-down flat

eddddy

GDB2222 wrote: »

It's no longer an auction property. Local agents have it.

Oh yes - and it seems to be under offer at £260k.

Doozergirl

Looks like it's got an acceptable offer in on it at £260k.

That's a very brave first time purchase. Not for the faint hearted, a potential money pit and the ongoing worry of being able to obtain a decent mortgage on a flat sharing the building with commercial premises.

If it has genuinely been empty for over two years then renovations are able to be charged at reduced rate VAT of 5%. There's one bonus.

I'd be very wary that it wasn't picked up at auction. Auction buyers are savvy people and will not overpay.

MarieMarieMarie

eddddy wrote: »

Being an auction property, many auctioneers expect offers to be on the same terms as an auction bid.

i.e. If the offer is accepted, you are required to sign/exchange contracts immediately, with 28 days to complete.

So you would normally get the legal pack checked by your solicitor (and pay their fee), before you make the offer.

But if you want different terms, you can try negotiating with the auctioneers.

If you (or a future buyer) need a mortgage - flats above shops are very difficult to mortgage - even in good condition. I'm not sure if this flat is behind or above the shop, but it may still be a problem.


I was a bit nosey - so I had a look at the legal pack. There's a big chunk of overdue service charge that you'll have to pay. Strangely, it seems to include over £1000 towards the cost of the shutter on the shop - it seems ridiculous that the flat owner contributes to the shop shutter. So either it's a badly structured lease, or a freeholder who's trying it on big-time.

Hi Eddy,

GDB2222 is right, it is not an auction property anymore, but I had a look at the legal pack too. Are you sure I will need to pay the overdue service charges? Also saw the cost on the shutter for the shop. It also says that the flat takes about 60% of the living space, which I am a little surprised. Apart from renovation there are definitely other questions that will need to be asked!

MarieMarieMarie

Doozergirl wrote: »

Looks like it's got an acceptable offer in on it at £260k.

That's a very brave first time purchase. Not for the faint hearted, a potential money pit and the ongoing worry of being able to obtain a decent mortgage on a flat sharing the building with commercial premises.

If it has genuinely been empty for over two years then renovations are able to be charged at reduced rate VAT of 5%. There's one bonus.

I'd be very wary that it wasn't picked up at auction. Auction buyers are savvy people and will not overpay.

yes offers have been made, but apparently they are not cash buyers.

Thank you letting me know about the reduced rate VAT of 5%. But I am starting to think that it would be a naive first time buy and not a brave one.

Thank you anyways

GDB2222

I spoke to the auctioneers! They said they had interest at the low £200k mark.

The sellers now have buyers wishing to go ahead at £260k, but that's all subject to the mortgage valuation stacking up. Which it can't, I expect, given the auction history. At least, they'll need a very brave valuer.

AFF8879

The bedrooms look tiny - it's clearly a 1 bed flat that's been ambitiously carved up by the landlord....

bertiewhite

Doozergirl wrote: »

Looks like it's got an acceptable offer in on it at £260k.

QUARTER

OF

A

MILLION

QUID

:eek::eek::eek:

I know the OP sounds like they're not interested now but with properties like this, is it worth talking to owners of the neighbouring properties to see if they are aware of the reasons for lack of interest or affected by similar issues?