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bewildered_renter

Developer Off-Loading As A Job Lot

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not seen one like this in Cardiff up to now:

http://www.rightmove.co.uk/property-for-sale/property-33919562.html?utm_content=ealertspropertylink&utm_medium=email&utm_source=emailupdates&utm_campaign=userdefinedarea-4m&utm_term=buying&sc_id=5347769

Looks like the developer is trying to get shot, probably not that unusual for a smaller development.

The stuff about the right to collect the service charge sounds dodgy and different though, and there's a rent guarantee for a couple of years.

Normally, they'd sell the leases on the individual flats to some amateur BTL victim, who would then pay the service charge and ground rent, hopefully using the rental income to cover the charges and their IO mortgage.

Hard to work out if they expect the buyer to take that role, or whether they are expecting the renting tenants to pay those charges.

I would certainly not expect, as a tenant, to be paying the service charge and ground rent.

Oh, and they already dropped £16,500 off the asking since putting it on the market in mid-May.

In general, I think I'm seeing a lot more coming on and then being reduced quite quickly, than I did this time last year.

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Isn't Cardiff Bay the glut land of empty BTL flats?

yes, every bit of spare land has been developed on, but they forgot to put in the shops and stuff.

Probably why this developer is selling them off like this. I'm pretty sure that plan A was to sell the leasehold on the individual units.

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Probably why this developer is selling them off like this. I'm pretty sure that plan A was to sell the leasehold on the individual units.

If you do a bit of googling around you can find the individual flats listed for sale, I'm guessing noone was interested in such tiny shoeboxes. It looks like it last sold for 235k at the beginning of 2005 so 472.5k does seem a bit steep, especially as most of the little terraced houses in the street sold for less than 150k even at peak.

8% yield does sound tempting but I'm guessing there will be be loads of void periods

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If you do a bit of googling around you can find the individual flats listed for sale, I'm guessing noone was interested in such tiny shoeboxes. It looks like it last sold for 235k at the beginning of 2005 so 472.5k does seem a bit steep, especially as most of the little terraced houses in the street sold for less than 150k even at peak.

8% yield does sound tempting but I'm guessing there will be be loads of void periods

Cheers Dylan,

I just had another look at the area on RM, and can see the individual flats still listed.

The 8% is just with the guaranteed rents, runs out after a couple of years. After that, whoever buys will be stuck with the voids and a shedload of NE.

What struck me were the claims that there is extra income to be had on top of that, which seem to be conflating two separate scenarios:

1) You buy the whole lot, and rent the flats out yourself, in which case you take the rental income (and just the rental income.)

2) You buy the lot, then try to sell on the leases piecemeal, possibly making a profit but you better be quick off the mark. The other suckers then take the pain of the voids (and presumably don't get the rental guarantee unless you stump up for that.) You then collect the service charge and gound rent from them. Until they find themselves in NE, unable to service their mortgages, and start to default on paying you the charges.

You either get to collect rent, or else you collect service charge and ground rent. Not both.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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