We had agreed a deal for a two bedroom flat in W1 with a shortish lease of 55 years, or at least we thought we had. The property is on the fourth floor of a purpose-built apartment block, which I didn’t know even existed until this flat came up, as it’s tucked away in a small square with commercial all around the ground floor. With a lease extension costing £150k and a makeover of around £75k, the property would be worth around £1.1m.
It’s a deal, hence I was pursuing it having completed one deal with the agent only recently. We were confident of receiving the contracts, however, days went ticking by and every time I checked in I was told the owner is taking his time and the contract will be coming in shortly.
However, on meeting a contact yesterday I discovered he was sitting on the contract, and had received it from a runner he uses. Small world; this shows the importance of having several sources in the market and to keep networking.
So the deal will be done, not through the agent who alerted us, but through the source who delivered. The fact that this same deal was spotted and closed by an associate shows how few deals come to the surface, for someone who’s networked in the area and keeps the network alive by steady buying, somehow or another deals keep finding their way to the buying source. This time we were second in the race; not to worry as we will simply jump on and piggyback on the front runner to the deal.
Contracts are in, and there’s a deal to be done.
Another deal which has also come up, is a small deal in Finchley, going for a ridiculous amount, £350k, at 1,000 sq. ft., this equates to £350 per sq. ft. On first hearing about the deal I assumed at this price it must be located on the north side of the North Circular road, as Finchley Road is a long road, and properties closer to Finchley Road station are more valuable than those situated near Finchley Central. This is located near Finchley Road station close to Hampstead, and so it’s a great deal which comes with the benefit of rent coming in from day one.
There is a small window of opportunity before the new mortgage regulations come in the new year, these will serve to reduce the amount one can borrow by increasing the rental cover which is required on BTL mortgages.
Christmas is coming, this will be a slow time for the property market as most people will be gearing up for the break and getting drunk at Christmas parties, this results in sluggish activity. If a deal is to be done, now is the time to be doing it.
Both these deals are available, we have the contracts in. If you are interested in either one, or both, give us a call before they get snapped up.
Student myths
Over the years, many myths have surrounded student living and the properties they rent, but most of these simply aren’t true.
1. Students don’t care about location
Whilst students may have limited budgets, this doesn’t mean they’ll live anywhere in pursuit of cheap rents. Ultimately, they’re looking for somewhere within a couple of miles of their University; so it’s crucial that you find a property to let that’s in the right area.
2. Students don't respect property
With students now demanding more, for example, properties with high quality furnishings, this myth is no longer the case. What this does mean is that landlords with student accommodation to rent will need to invest in quality furniture and fittings, with a modern interior. Don’t scrimp with cheap furnishings, as it’ll need to withstand wear and tear, and in the long run, you could end up forking more out for replacements.
3. Students don’t mind
Again, this is another total misconception – students today look for a comfortable property that they’ll enjoy living in. It’s worth knowing that whilst students may not always demand the best of furnishings and decor, their parents most certainly will, especially if they’re asked to be a guarantor for the rent! A scruffy, dirty student property will most definitely struggle finding quality student tenants.
4. Students don’t pay much in rent
While it's true to say that students would prefer to pay a low rent because of their limited budgets, it isn't true to assume that all students are like this. There is a growing demand for quality accommodation which means that students are willing to pay realistic market rents to enjoy these properties. Additionally, when a house is recognised as an HMO, the reality that the property has undergone inspection to ensure it reaches a certain standard, will draw in students looking for good-quality housing; meaning higher rents can be charged.
5. Student houses are too much trouble
Again, the clear majority of students are decent, hard-working people who have been undermined by the antics of a very small minority. So while there are some badly behaved students, most students today have too much invested in their education to cause problems for their landlord or their neighbours. Additionally, most students sign up for a year long tenancy agreement, ensuring the consistent payment of rent – even when they’re not residing in the property during the summer months.
The student accommodation sector is a buoyant one, so get in touch and let us help you to tailor your property to the student market.
