ScrewsNutsandBolts Posted March 7, 2011 Share Posted March 7, 2011 http://www.eigroup.co.uk/auctioneer-templates/LotDetails.aspx?LotID=602058&a=61&c=bwb Might look like a bargain as originally sold for almost 300k in 2001, and now guided at 200-225k with a yield that appears to be around 8-9%. However, annual service charges on this apartment are huge (somewhere aound 13-14k) which takes the yield to around 1-2%. So no wonder the owner is selling !! The question is, this seems to be pretty much the only listing where the legal pack is still unavailable (auction is on 10th... just three days away), so is this just coincidence or a ploy to hope that someone buys without understanding the service charge ? Quote Link to comment Share on other sites More sharing options...
exiges Posted March 7, 2011 Share Posted March 7, 2011 However, annual service charges on this apartment are huge (somewhere aound 13-14k) How much !! Quote Link to comment Share on other sites More sharing options...
Mr. Miyagi Posted March 7, 2011 Share Posted March 7, 2011 Caveat Emptor Quote Link to comment Share on other sites More sharing options...
ScrewsNutsandBolts Posted March 7, 2011 Author Share Posted March 7, 2011 How much !! Exactly... no one would assume that would they ! The service charges for the Mailbox are massive at around 10 quid per square foot per annum. I think around 25% of the charge is the "real" service charge, the remaining 75% is subsidising the retail part of the building and the employment of security staff etc. Know as I used to rent there. The service charge that the landlord paid was more than half of the rent they took from us. Quote Link to comment Share on other sites More sharing options...
Englaender Posted March 7, 2011 Share Posted March 7, 2011 http://www.eigroup.co.uk/auctioneer-templates/LotDetails.aspx?LotID=602058&a=61&c=bwb Might look like a bargain as originally sold for almost 300k in 2001, and now guided at 200-225k with a yield that appears to be around 8-9%. However, annual service charges on this apartment are huge (somewhere aound 13-14k) which takes the yield to around 1-2%. So no wonder the owner is selling !! The question is, this seems to be pretty much the only listing where the legal pack is still unavailable (auction is on 10th... just three days away), so is this just coincidence or a ploy to hope that someone buys without understanding the service charge ? In my opinion, it would be the latter. Saw a similar thing at a Countrywide Auction about 18 months ago for a place called Seacon Tower on the Isle of Dogs. Details of the s/c were very sketchy and it was only by speaking to a very helpful chap at a management company that had previously dealt with the estate that I stumbled across similar information. Quote Link to comment Share on other sites More sharing options...
Daft Boy Posted March 7, 2011 Share Posted March 7, 2011 (edited) How much !! Service charges at the Mailbox are actually in the range of £3k-£4K per annum. These flats were selling at auction 2 years ago for £140K so the guide price of £200k plus is being a bit silly Edited March 7, 2011 by Daft Boy Quote Link to comment Share on other sites More sharing options...
ScrewsNutsandBolts Posted March 7, 2011 Author Share Posted March 7, 2011 Service charges at the Mailbox are actually in the range of £3k-£4K per annum. These flats were selling at auction 2 years ago for £140K so the guide price of £200k plus is being a bit silly 3-4k paid for a 500 square footer (2-bed) about three years ago. They are now 4-5k. Service charge is very close to 10 quid a square foot (actually a bit over now I think). The dupley apartments are around 1400 square foot. Quote Link to comment Share on other sites More sharing options...
Daft Boy Posted March 7, 2011 Share Posted March 7, 2011 3-4k paid for a 500 square footer (2-bed) about three years ago. They are now 4-5k. Service charge is very close to 10 quid a square foot (actually a bit over now I think). The dupley apartments are around 1400 square foot. Thats what my mate was also paying for a two bed in the Mailbox (£3800). i believe there is a a ceiling for the service charge though. i think a service charge in excess of £1500 is too much even for a draughty hole like the Mailbox Quote Link to comment Share on other sites More sharing options...
ScrewsNutsandBolts Posted March 7, 2011 Author Share Posted March 7, 2011 Thats what my mate was also paying for a two bed in the Mailbox (£3800). i believe there is a a ceiling for the service charge though. i think a service charge in excess of £1500 is too much even for a draughty hole like the Mailbox Not sure about the ceiling cost... I remember speaking to a guy who was in one of the massive 2 bedders on the top floor and he was paying 8400 a year. That was probably three-four years ago and his place would have been around a thousand square foot. Anyway, however you cut it, that kind of money is ridiculous and I think you will not find service charges of more than 2k anywhere in Birmingham. The way I look at it you could be spending that 4k (or 8k or 12k) on mortgage repayments instead of service charges, and that would probably cover an additional loan of 50k (or 100k or 150k). Apartments in the Mailbox are just a disaster for all concerned. Quote Link to comment Share on other sites More sharing options...
Daft Boy Posted March 7, 2011 Share Posted March 7, 2011 Not sure about the ceiling cost... I remember speaking to a guy who was in one of the massive 2 bedders on the top floor and he was paying 8400 a year. That was probably three-four years ago and his place would have been around a thousand square foot. Anyway, however you cut it, that kind of money is ridiculous and I think you will not find service charges of more than 2k anywhere in Birmingham. The way I look at it you could be spending that 4k (or 8k or 12k) on mortgage repayments instead of service charges, and that would probably cover an additional loan of 50k (or 100k or 150k). Apartments in the Mailbox are just a disaster for all concerned. I agree. Three years ago I posted on this site that I would buy a one bed at the Mailbox to use as a bolthole when the prices dropped to around £80K. I doubt I would consider it now even if they drop to £60k. Same goes for the Rotunda Quote Link to comment Share on other sites More sharing options...
Nationalist Posted March 7, 2011 Share Posted March 7, 2011 What idiot is paying £1,450pcm to rent in Brum! Don't tell me, it's the taxpayer, isn't it? The apt is problably full of HB recipients... Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted March 7, 2011 Share Posted March 7, 2011 I like the building, but its right on the Inner ring road. Useful though the ring road is, I wouldnt want to live on it. They should convert it into offices. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted March 7, 2011 Share Posted March 7, 2011 I like the building, but its right on the Inner ring road. Useful though the ring road is, I wouldnt want to live on it. They should convert it into offices. Which is kind of ironic as that's what they were to begin with. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted March 7, 2011 Share Posted March 7, 2011 Which is kind of ironic as that's what they were to begin with. Yes, i guess the trouble is no one works in town centres anymore, unless its in retail. The office stuff is either in Chindia or some business park halfway to coventry. Quote Link to comment Share on other sites More sharing options...
ScrewsNutsandBolts Posted March 7, 2011 Author Share Posted March 7, 2011 http://www.birminghampost.net/news/west-midlands-news/2009/02/26/mailbox-residents-face-ruin-after-service-charge-increase-65233-23013136/2/ Article showing 12,000 a year for the Duplex apartments from a couple of years ago... think there was a big hike since, and another linked to the VAT rise in January. Quote Link to comment Share on other sites More sharing options...
neil324 Posted March 7, 2011 Share Posted March 7, 2011 Yes, i guess the trouble is no one works in town centres anymore, unless its in retail. The office stuff is either in Chindia or some business park halfway to coventry. Erm you havin a laugh. You seen the traffic into and out of Birmingham city centre both ways daily? Quote Link to comment Share on other sites More sharing options...
MongerOfDoom Posted March 7, 2011 Share Posted March 7, 2011 http://www.birmingha...233-23013136/2/ Article showing 12,000 a year for the Duplex apartments from a couple of years ago... think there was a big hike since, and another linked to the VAT rise in January. So, does anyone know why the particular management company is able to get away with rogering the leaseholders senseless, whereas most others can only manage to mildly rip them off? Quote Link to comment Share on other sites More sharing options...
Guest sillybear2 Posted March 7, 2011 Share Posted March 7, 2011 With scenic views of New Street station and the ring road. The building is also full of BBC w@nkers. Quote Link to comment Share on other sites More sharing options...
Englaender Posted March 7, 2011 Share Posted March 7, 2011 With scenic views of New Street station and the ring road. The building is also full of BBC w@nkers. Certainly wouldn't disagree with that. On a slight side note, I was working for CBBC at TV Centre a little over two years ago. While I was there, met a lad who had transferred from Pebble Mill (when it was shut down) and was living in London Monday to Friday before returning to his house in Selly Park at the weekends. There would have been nothing for him to do when they moved to The Mailbox, seeing as the studio space is basically non-existent. Most interesting however was the difference in what they had been paying for the lease of Pebble Mill (a pittance) and what they were going to pay for the much smaller space in The Mailbox. Forget the specifics, but it was a HUGE amount and he was pretty sure that as soon as the lease expired, they'd be out of there like a shot. There appear to be quite a lot of Brummies (currently exiled like me or otherwise) on here tho. Quote Link to comment Share on other sites More sharing options...
Englaender Posted March 7, 2011 Share Posted March 7, 2011 This forum of ex-BBc employees suggest that the lease for the Pebble Mill site was peppercorn, about £125 per year (a figure quoted / repeated on numerous other sites). And from this FOI request response, it would appear that the annual rent paid by the BBC for occupation of the Mailbox is £2,141k and the annual service charges for the space are £364k and that the lease will expire on 23rd June 2026. Money well spent to kill off what was then probably the last remaining production space outside of London. but it's ok, because they're now spending LOTS more of our, sorry their, money on a move to even shinier, newer offices in Salford. Which they still won't own and will be leasing for God-knows-how-much. Apologies for going somewhat off-topic with this. Can you tell I didn't enjoy my time there?! Quote Link to comment Share on other sites More sharing options...
Guest sillybear2 Posted March 7, 2011 Share Posted March 7, 2011 Doesn't surprise me, it's either a NuLabour style incompetence when it comes to spending other peoples' money, or outright corruption, take your pick. Quote Link to comment Share on other sites More sharing options...
ScrewsNutsandBolts Posted March 10, 2011 Author Share Posted March 10, 2011 So the auction is today ! Legal Documents are now available but now sign of the service charge anywhere. Requested the information from the auctioneers but said they didn't have it. Requested from the solicitors and still no reply... Anyway... the last "premium" apartment to sell in the same building went for 130k in December 2010. http://www.eigroup.co.uk/auctioneer-templates/LotDetails.aspx?LotID=595133&a=539&c=hah That one originally sold for 289k in 2000 (ouch ) Todays auction beauty went for 292.5k in 2001 so hard to see how it could be valued at more than 130k when it cost basically the same new. And they just revised the annual rent down 400 quid in an ammendment document. Anyway... one to watch with interest... auction starts at 11:00am. Quote Link to comment Share on other sites More sharing options...
ScrewsNutsandBolts Posted March 10, 2011 Author Share Posted March 10, 2011 Surprise surprise... unsold Quote Link to comment Share on other sites More sharing options...
neil324 Posted March 10, 2011 Share Posted March 10, 2011 Surprise surprise... unsold How you know the results, they normally take 24 hours to publish. Quote Link to comment Share on other sites More sharing options...
ScrewsNutsandBolts Posted March 10, 2011 Author Share Posted March 10, 2011 How you know the results, they normally take 24 hours to publish. I was quite interested to see how it went, so I had a dig around a google and found you can get a live feed to auction results. Link here: http://www.eigroup.co.uk/onlineauctions/liveauction/Lot.aspx?AuctionID=15093&Mode=Live'>http://www.eigroup.co.uk/onlineauctions/liveauction/Lot.aspx?AuctionID=15093&Mode=Live More generally you can access lots of auctions live from here: http://www.eigroup.co.uk/onlineauctions/ Quote Link to comment Share on other sites More sharing options...
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