lulu Posted June 19, 2006 Share Posted June 19, 2006 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. Quote Link to comment Share on other sites More sharing options...
Jason Posted June 19, 2006 Share Posted June 19, 2006 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! Quote Link to comment Share on other sites More sharing options...
FreeFall Posted June 19, 2006 Share Posted June 19, 2006 And if it's an ex LA flat in a block of more than 4 stories high it can be a problem getting a mortgage.... Quote Link to comment Share on other sites More sharing options...
teddyboy Posted June 19, 2006 Share Posted June 19, 2006 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 Quote Link to comment Share on other sites More sharing options...
enworb Posted June 20, 2006 Share Posted June 20, 2006 I certainly wouldn't trust the pillars enough to park my car underneath 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. Quote Link to comment Share on other sites More sharing options...
Last Hun Standing Posted June 20, 2006 Share Posted June 20, 2006 Concrete cancer Plenty of ex LA properties were made with the wrong mix, resulting in buildings that literally crumble once the rot sets in. Impossible to mortgage. Quote Link to comment Share on other sites More sharing options...
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