Podcast Summary
Off-market offers: Consider the valuation carefully when receiving an off-market offer, as it may reflect the fair market value for your property. Obtaining accurate property valuations and being open to off-market offers can lead to successful transactions.
When receiving an offer for your property before it hits the market, it's essential to consider if you're satisfied with the valuation. If you are, then it may be worth entertaining the offer, as it reflects the perceived fair market value for your property. This situation highlights the importance of obtaining accurate property valuations and being open to off-market offers. It's also crucial to remember that being in a chain can sometimes lead to higher offers, as buyers may want to secure a property before it becomes publicly available. Overall, this scenario underscores the need for flexibility and careful consideration when dealing with property transactions.
Offer conditions: Consider the impact of offer conditions on your ability to receive better offers. Hold an open weekend or approach other agents if no conditions are attached, but assess their willingness to beat the current offer.
When considering an offer on a property, it's essential to consider any conditions that come with it. If a buyer puts a condition on the offer that restricts your ability to receive other offers, such as not allowing more viewings or taking the property off the market entirely, it may be worth considering. However, if there are no conditions attached, you could consider holding an open weekend with an agent to see if better offers come in. Alternatively, you could approach a state agent and ask if they could beat the current offer. If they seem hesitant, it might not be worth the effort. Overall, having an offer on a property with a good yield and a vacant freeholder is a desirable position, but it's crucial to carefully consider any conditions attached to the offer.
Absent Freeholder: Purchasing a property with an absent or unidentified freeholder can lead to complications, including difficulty extending the lease, making alterations, getting a mortgage, and selling the property.
Purchasing a property with an absent freeholder, or someone who owns the freehold but cannot be identified, may seem like a good thing because you won't have to pay ground rent. However, this situation can lead to several complications. For instance, extending the lease or making alterations becomes more complex and time-consuming since there's no one to grant permission. Additionally, maintaining the block depends on whether there's a managing agent in place, and they may face limitations without clear instructions from the freeholder. Moreover, getting a mortgage on such a property can be challenging, as some lenders might not accept indemnity insurance. Selling the property in the future could also be problematic, as potential buyers may share your concerns. Therefore, it's crucial to weigh the risks and benefits carefully. A significantly better deal than other local options might make the extra risk and potential hassle worthwhile. But if the difference is marginal, it's advisable to reconsider. Ultimately, it's essential to ensure that the building is being maintained and that extending the lease isn't an immediate concern before pursuing such a purchase.
Leasehold investment benefits: Considerable gains possible through buying freehold or right to manage, but requires planning, cost, and expert advice. Not for all investors.
Investing in a leasehold property with the intention of gaining control through means like buying the freehold or going through the right to manage process can potentially bring significant benefits in the future. However, it requires effort, cost, and a solid plan. It may not be suitable for all investors, especially those who are "lazy" or risk-averse. Before making a decision, it's crucial to seek advice from a solicitor with expertise in leasehold matters and consider the potential risks and rewards. Remember, everyone's investment priorities and attitudes are different, so it's essential to do what's best for your unique situation. Stay informed by tuning in to our property podcast and reading our column in the Sunday Times Home section. Happy investing!