My London Auction Property Bought At A Knock Down Price

9 Nov

Today I have decided to do something new – I have worked out (just about) how to use the video function on my iphone4 and I have recorded a short video!

The video shows my new property which I have just purchased at auction. I completed on this 2 bed flat in South East London on Friday (sorry has taken me a few days to work out how to embed video into the blog!)

The first part of the video is the outside of the block and the surrounding area…until I get interrupted by the estate agent (who has arrived to value the flat). If you watch out you will see a bearded guy walking down the road with a briefcase – that is him!

Here is the second part of the video and this is inside the flat.

I bought the flat at auction in London for £96.5k and am currently deciding what to do with it. I have had it valued for rental at £850-900pcm and for re-sale on the open market at £130k as it stands.

The sting in the tail (there usually is one!) is the flat has what is deemed to be a short lease (66 years) and so I have to decide whether I want to extend the lease to get the maximum value for the flat (for that I will have to enter negotiations with the Freeholder and pay a premium). However, the key issue is that I have only just bought this flat and the right of extension for a leaseholder only applies after you have owned the property for 2 years. That means the Freeholder can refuse your request or ask a higher figure for the extension premium (as I have not owned the flat for 2 years).

The agent was very interesting and he was telling me flats in the block had sold in good times for around £200k…

So – now I have to decide – do I rent it, extend the lease and wait for good times

OR

Sell it on now and make a quick buck!

Will let you know what I decide!

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