London Auction

[BearlyBegun]

Browsing the Savills london auction I keep coming across the below line at the bottom of the listings

"Note

The seller cannot sell the property to a purchaser who intends to occupy the property as his/her or their principal home."

Can anyone elighten me as to why this would be?

Apologies if its already in one of the topics here but I never have much luck with the HPC search function.

[needle]

Got any examples?

[fallingbuzzard]

Properties previously sold by councils with restrictions meaning they can only be sold to owners that let them out. Quite a few of these in London

Browsing the Savills london auction I keep coming across the below line at the bottom of the listings

"Note

The seller cannot sell the property to a purchaser who intends to occupy the property as his/her or their principal home."

Can anyone elighten me as to why this would be?

Apologies if its already in one of the topics here but I never have much luck with the HPC search function.

[BearlyBegun]

Properties previously sold by councils with restrictions meaning they can only be sold to owners that let them out. Quite a few of these in London

Thanks - interesting, and rather annoying. Excluding someone who wants to buy and live there & instead only allowing someone to buy-to-let it? Oh well.

Example: http://auctions.savills.co.uk/lond_Current_auction_lot.asp?pos=33

[tim123]

I asked the same question here:

http://www.housepricecrash.co.uk/forum/index.php?showtopic=146833&st=0&p=2613836&fromsearch=1entry2613836

needle, it's properties in the Saville's auction and there's one in the current list.

tim

[porca misèria]

Properties previously sold by councils with restrictions meaning they can only be sold to owners that let them out. Quite a few of these in London

If that's what it is ( ), you could get around it by setting up a limited company to buy it and rent it to yourself. But unfortunately, I can't see how you'd do that financially-efficiently.

The more usual restriction that blights some very nice places around here is not a principal residence; holiday-home only.

[tim123]

If that's what it is ( ), you could get around it by setting up a limited company to buy it and rent it to yourself. But unfortunately, I can't see how you'd do that financially-efficiently.

The more usual restriction that blights some very nice places around here is not a principal residence; holiday-home only.

I was considering this for the properties in the August auction as the guide price was about 50% of probable value. The small cost of moving the purchase though a company to get rid of the restriction would have been lost in the noise.

However,

1) No-one replied to my post informing me that the restriction was likely one that only applied to the current seller and wasn't a covenant that applied to all future sellers, until after the auction date.

and

2) they went for significantly more than guide, much nearer probable value, anyway.

I note that the guides in the current auction are much nearer their probable current value

tim

[Executive Sadman]

If that's what it is ( ), you could get around it by setting up a limited company to buy it and rent it to yourself. But unfortunately, I can't see how you'd do that financially-efficiently.

The more usual restriction that blights some very nice places around here is not a principal residence; holiday-home only.

Even better you could pay yourself the company housing benefit

Wonder how many people do just that?