We have just closed a deal over the weekend, in W2. We had the contract for some time, but I actually didn’t see the true potential of the property until my second visit. The penny did not drop. Not only is the property in a stonking location, which is in one of the few areas in Central London predicted to rise, you’re coming in with a very solid discount of 25%. These two factors alone make this a great deal.
On my second visit, I realised there is almost a certainty of planning for a mansard to be granted. In addition to this there is also the possibility of the flat roof, at the rear, being open to conversion. Therefore, the property consisting of 700 sq. ft., could be developed by adding an additional 300 sq. ft. To find a property at a discount, in a good location and be able to increase the sq. ft. by 40% is almost unheard off.
Unsurprisingly we had a buyer for this property who viewed the property twice before he agreed to purchase the deal. A novice buyer, who in order to compensate for his noviceness partnered with a property developer and wanted to impose his terms on the deal, and thought this made him a good negotiator. One of which included shifting the lawyer from the one who had the contract; this would actually serve to disrupt the deal, which you do not want to do, especially when you have a bargain and there are vultures floating around it. Any half decent law firm would be able to execute a conveyancing matter.
I expected this kind of response from the interaction I was having during the viewings. You learn to develop nose for these things. Another interested buyer, who only found out about the deal over the weekend, stepped up and said he would execute the deal on Monday, without seeing the property, and he was commercially minded enough to roll with the terms laid out.
This deal has been agreed and is in the motions of being executed.
Central London is anticipated to be flat for a couple years. This does not mean there are no deals to be done. Vendors who have to sell, such as those going through Death, Divorce or Distress, will be more realistic about what they will accept. Now is not the time to purchase at market value, only purchase discounted deals anywhere in Central London.
From W2, off to an off-market site in Walthamstow. Increasingly we are being pulled by the returns to the outside of London; there are some great deals to be had at the moment, especially development ones.
This East London site, is truly off-market. Many deals are offered ‘off-market’, until you find out in the coming days three other people are punting them around. In actual fact the term is a little nonsensical, because as soon as it’s offered it becomes on the market.
However, this deal is only being sent to us - call it what you will. It is a development site without planning. This one is for a seasoned investor. The returns for getting planning and flipping offer the highest returns if you look at the life of a deal from its inception. This is the way to make the most money with the least amount of hassle. The purchase price is £3m, and with planning it is expected to be around £7m – at least. Call the office now to find out more.
Agony Agent
Each week, we answer a reader’s rental property question, from first-time landlords to experienced owners. Agony Agent, is here to help!
Q: How do I legally dispose of items left by my tenants?
A: At the end of many tenancies, items of furniture or personal belongings are left behind, but despite their abandonment, these items still legally belong to the tenant. So how should you go about removing them? Items left by your tenant still belong to them, regardless of whether a possession order was obtained by you, or the tenant surrendered the tenancy. This is a recurring dilemma for landlords, who are conscious that the removal of belongings left by a tenant is unlawful. If possible, photographs of the property and its contents should be taken and an estimate of the value of the goods left behind should also be recorded.
A decision should be taken based on what is left behind. If the goods are disposed of by the landlord and subsequently turn out to be of value, the landlord may be subject to a claim for damages by the tenant. The landlord becomes an 'involuntary bailee', having acquired goods left at the property which belong to another. Landlords are required to take care of the tenant's goods and make reasonable arrangements to trace the tenant so that their goods can be returned to them. Under the Torts (Interference with Goods) Act 1977, Landlords are permitted to dispose of goods left behind as long as the correct procedures are followed.
Notice should be served in accordance with Schedule 1 of the Act, requiring the tenant (or the true owner of the goods) to come and collect them. The notice should be sent to the tenant if the address is known, and in any event attached to the property so that it can be clearly seen.
The notice will need to include the following information: where the goods are being kept; where sale of the items will take place; if items are sold, sale and storage costs will be deducted from the proceeds of sale; and list the goods that will remain. Reasonable time to collect is all down to you, however I believe two weeks or more is sufficient. If all reasonable steps have been taken to contact your former tenant and the notice has expired, you can dispose of the goods. If the goods are sold, any proceeds of sale that remain - after deducting storage costs and debt owed to the landlord - must be returned to the former tenant. If the steps mentioned above are not taken, landlords may find themselves open to the former tenant bringing legal action against them (a civil action for damages for selling or using another person's property). This can be very costly and time consuming so it is important to ensure that the steps above are taken and evidence of doing so is carefully recorded.
For any further information or advice please contact me.
