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lulu

Can Someone Explain This?

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Apart from being in a tower block in a not that desirable part of town, can someone explain why you might not be able to get a mortgage for it?

"The property is an excellent investment opportunity situated on the tenth floor of a 1960's multi-storey building, which has been fully renovated.

The return on capital, based on a monthly rental income of £400, is over 9%, which is very attractive. No bank will match that! Mortgage finance may not be available, but with the new Royal Infirmary just on the other side of Dalkeith Road, tenants should be available speedily."

http://www.rightmove.co.uk/viewdetails-650...pa_n=3&tr_t=buy

- arguments about whether you could rent a dump like that for £400 a month in a city where you can live somewhere nice for not much more are optional.

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Because an EA says it will rent out for £400 doesn't mean it will.

Secondly, you probably won't get a mortgage on it cause it is beyond it's lifespan - it could fall down!

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Apart from being in a tower block in a not that desirable part of town, can someone explain why you might not be able to get a mortgage for it?

"The property is an excellent investment opportunity situated on the tenth floor of a 1960's multi-storey building, which has been fully renovated.

The return on capital, based on a monthly rental income of £400, is over 9%, which is very attractive. No bank will match that! Mortgage finance may not be available, but with the new Royal Infirmary just on the other side of Dalkeith Road, tenants should be available speedily."

http://www.rightmove.co.uk/viewdetails-650...pa_n=3&tr_t=buy

- arguments about whether you could rent a dump like that for £400 a month in a city where you can live somewhere nice for not much more are optional.

Look at the picture of the right tower - A bomb has just gone off!!! ;)

I think its because NO ONE will take a risk on lender money for this. This could be earmarked for demolition ANY DAY NOW!

If I was a lender, the words 'Get the f'ck outta here' come to mind :)

TB

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I certainly wouldn't trust the pillars enough to park my car underneath :D

Seriously though, a lender's serveyors could see the obvious problems with it let alone what they would find after a close inspection. Maybe if valued more accuratly it wouldn't be a problem but my guess is that just shy of £50k is too much and £400 per month is dreaming. It evens states it is based on £400, and dosesn't mention that it has ever been let at that figure.

The fact that the ad goes into so much detail about the surrounding area reeks of desparartion to sell it.The only chance the vendor has is a cash buyer.

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  • 301 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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