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  1. Hey everyone! First post here, I’ve been listening to the pod for 2 years now and done some searching on here and other forums and and can’t quite find what I’m looking for so thought I’d give it a shot... I am looking to buy a fixer-upper in south west London and need to determine what the maximum I am willing to offer. I wonder if any of you smart folk have any suggestions as to how I calculate this. The property This is a 3 bed, 1 bathroom flat with planning permission to become a 4 bed 4 bathroom with a roof terrace. It is in need of significant refurbishment to bring it into a liveable state. I would look to live here myself as well as rent out 2 of the rooms and use the smallest room as an office. Above commercial (D2) It is above a commercial premises (yoga studio) and from my research this typically equates to a 10-15% reduction in value. Is that fair? I know it can also decrease my mortgage options (due to difficulty in selling at a later date) but my broker has suggested it should be fine in this instance. I have also included in my terms of negotiation that the commercial premises lease is amended in that it cannot be converted into an A3 to help protect future value. As the owner has the freehold to the commercial premises they have agreed to this amendment. This has been agreed. Near a semi-busy road It is also on a B road (Lower Richmond Road). I have heard this should also to a 5-10% reduction. Is that fair? I recently recorded the sound in the flat at it was 30 decibels which is relatively quiet and that is with single glaze windows at present! Planning permission in place To factor this in I have multiplied the adjusted £psf by the potential additional sf, to calculate the potential value. I have then taken away the build cost to work out the difference and divided that by the current value. This gives me 10%, so I have used that as the value increase of having the planning permission. Is that a good estimate? Estimated refurbishment cost Next, I have deducted the estimated cost to bring it to a liveable condition (mainly cosmetic) to determine my maximum bid. The calculation What do you think? Naturally, I am also slightly cautious with many sources suggesting a significant dip in the market next year, is now really the time to be buying or would I be better holding out for a few weeks/months and get a better price? I would be holding this for 5-10 years so over the long run it would be fine I am sure but could I get a better deal next year? Thanks, James
  2. I would like to buy a repossession flat to live in. I am having trouble figuring out how much to put in an offer for. Here's the background information, my husband and I want to buy a flat to live in. It was put on the market at the beginning of the year, then pulled from the market because they weren't sure if it was mortgagable, and it has now gone back on the market again and has been for a few weeks now. It was previously on the market for 400k and it's again on the market for 400k. Someone else, previous to the flat being pulled from the market, put in an offer of 408k. I put in an offer of 370k when it went back on the market, because I understood that there were no offers on the table anymore. I was then told that the offer was rejected due to the bank waiting to hear back from the person that put in the offer of 408k if they still wanted to buy the property. I just spoke to the estate agent again, and he explained that the other buyer had to renew his buy to let mortgage offer as it has expired, but has been rejected due to the bank's BTL criteria changing between the beginning of the year and now. He's now waiting for approval from another bank for a BTL mortgage. The estate agent said that if I put in a matched offer of 408k then it'd probably be accepted (I guess since I'm more reliable since I have a mortgage in principle?). My question is, what kind of offer should I be making at this point? Should I ask to put in another offer of 370k? Should I put in the offer of 408k? The bank is not in any hurry to sell the property (contrary to what I've heard about repossessions in general) and that they just want to sell for as much money as possible. I put in an offer of 370k because I know it'll cost 30k to do up the place to make it liveable. I know the bank doesn't care how much I'm going to have to spend on the flat once I buy it, but I wonder how get an offer accepted? Should I just bite the bullet and offer 408k? But if I do, the flat still stays listed and someone else could come in and gazump us. Should I get a survey done and then put in an offer since I'll be working off of better information to put in an offer? Could use some advice now, I really want this flat but not willing to go bankrupt myself! Thanks, Rebecca
  3. Hi all, I am in a bit of a pickle on my first property investment. The lender's valuation has come back £10k lower than my bid based on the prices of recently sold, similar properties in the area. Is there any first-instinct advice based on the above? Now for some more information: I can't make up the 10k shortfall and don't want to. The estate agent is going to contest the valuation today - he assures me that the valuation is accurate based on current prices. I see my options as 1) the valuation is contested and everything goes ahead as planned. 2) the valuation holds and I bid 10k lower and most likely get rejected. 3) the valuation holds and I ask the vendor to keep it off the market until (as the agent says) some properties complete at the relevent price and the valuation goes up. Based on this does anyone have any experience of a similar situation? Any advice would be much appreciated!
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