Commercial & Residential Auction Bargains Analysed | Allsop | Acuitus | Property Auctions Review E04

[@dannymurphy1779]

I think with the Itchenor one there is the risk the occupier in the next door cottage might have a legal right of occupation. Even the best scenario means a lengthy process of eviction. Also you are unlikely to get a mortgage with the right of way issue, which is why it found it's way into a pension in the first place. Obviously it is bound to go to a close connection to the owner. Regarding the Brighton flats, come on guys, you are never going to get another floor on those! It would make them look all wrong visually, not in keeping with the character of the area etc etc. Think you got a bit carried away on that lot, have done myself on many occasions lol, it's very easy to do with auction lots. Thanks guys this was the best one so far in my opinion.

[@CavershamJohn]

Unencumbered property with SIPP attached, 25% of to be repaid annually if not, in come the repossession proceedings. Not mortgageable due to access issues.

[@CavershamJohn]

Offer £50k to the landowner next door for right of access or easements etc-good sol is what you need-know any lol!

[@richardroach1295]

Always very interesting seeing how you all analyse deals

[@habituallinestepper_]

After Covid , going into 2021 - do you see a much bigger opportunity with commercial property? Also, on the topic of commercial you never seem to talk about office blocks?

[@charlottethompson594]

The cottages are squatted AND also failed an application for residential status. I was tempted but sounds like a nightmare. The grounds for change to residential was the fact it didn't cash flow as a holiday let....council said no.

[@steveharman8907]

At some point would the flats not be great for Serviced accommodation.?

[@steveharman8907]

Ranjan...do you show the results in a show.?

[@tomatobrush3283]

If the entire mixed use building is let to the commercial tenant and the uppers are under used. What options does the freeholder have of renegotiating the lease immediately to exclude the uppers? If there is no rent review in the lease, if the lease can't be renegotiated immediately, would that mean the freeholder was locked in without recourse?

[@CavershamJohn]

Rent reduction in return for returning the underused uppers, sure they'd be hp with this? Otherwise yes you're locked out.

[@TickaboxPromotions]

It looks like the holiday cottage owners have used there pension for the purchase. Unfortunately they maybe deemed commercial but cannot be kept in the pension. Any FHL that can easily be used as a residential unit does not fit the criteria. The pension has then called in the loan and the traditional let income will not generate the cash flow required to service the pension (has to be paid back in 5 years if a loan) or are not mortgageable with the current issues with the property. Tremendous opportunity for an SA provider like me to resolve the issues with the landlock etc and generate around £60k pa as legitimate FHL.

[@CavershamJohn]

FH Insurances may forbid food/drink below, plus resi lenders above may not be HP with food /drink below.

[@CavershamJohn]

Or dry cleaners on GF-resi lenders hate them..

[@ssandher8401]

@@CavershamJohn why dry cleaner? Do lenders give a reason for this?

[@CavershamJohn]

@@ssandher8401 Chemicals/(perceived)Fire risk, if you own a unit with resi above, you will restrict your lending and hike your insurance with a dry cleaner below. I say 'perceived' as a lot of dry cleaning uses harmless inert products, however lenders/insures will ignore this and assume they have a bank of industrial dryers (fire risk) and horrible chemicals. We had exactly this B4, we had to exclude DC within the commercial lease in the end keep mortgage co HP. Plus if you have food/drink below, again fire risk and mortgage challenge as most resi lenders will not go beyond 65%ltv for a flat above a hot food outlet...John Maynard

[@ssandher8401]

@@CavershamJohn I see. Thanks for that info. Just bought a commercial unit and going to put resi at the rear of the property. We have a dry cleaners wanting to lease the commercial off us but will enquire with some lenders regarding refinancing the resi once it done before we go ahead with the dry cleaners lease. Thanks again

[@CavershamJohn]

@@ssandher8401 No prob, yes DC's will be come across as very 'keen'..because their availability of units is a bit restricted, one for your broker and tenancy agreement legals for sure. Good luck-where are you based?

[@steveharman8907]

That square will have sea view

[@steveharman8907]

Not to Pizza people Piotr as the street is very narrow up at the top end of this high street.

[@CavershamJohn]

Windsor property is well worth a second pass

[@CavershamJohn]

ps check for conservation-Windsor after all plus check for zone 3 flood for uppers extension stones throw to the Thames there.

[@immers2410]

@@CavershamJohn good points. As you say, both may come into play here. Does flood risk zone 3 mean you can’t increase the envelope of the building at all?