Many purchasing opportunities are highly attractive, but can prove too difficult for the majority of buyers to take advantage of. They may require deep market knowledge, for example to navigate tricky legal terms such as life tenancies, or may only be available to large cash buyers, for example when a property is difficult to mortgage due to a short leasehold term or certain freeholder complexities.
These opportunities are not only rare, but cater to a very restricted market. As a result they can often be secured at a discount, giving the potential for enhanced capital growth and a higher an income yield.
We have access to both of the requirements needed to acquire these kinds of property. First is the relevant expertise, thanks to the long-standing industry knowledge within our property team. The second is the buying power, thanks to the collective purchasing power of our investors. These combine to allow us to take advantage of these specialist opportunities and bring them to you simply, without the stress.
Here are some examples of our Specialist properties:
Murray court, Hanwell – Breaking the chain with a cash purchase.
The vendor of this house had committed to buying another property and needed a fast transaction from a cash buyer to break the chain. This allowed us to secure the property at a 10% discount to the surveyor’s valuation.
High Court, Byfleet – Temporary restrictions on mortgaging.
This leasehold flat had legal complications as the building’s freeholder was going through bankruptcy. Although the resolution is simple, the freehold title would likely be sold by an administrator acting on behalf of the bank, it could take several years to resolve. In the meantime, mainstream banks will not provide a mortgage on any of the leasehold properties, limiting the market to cash buyers. The difficulty of the situation meant that we were able to negotiate a 20% discount to the surveyor’s valuation.
Fairholme Road, Croydon – Assured Periodic Tenancy.
This 3-bed house is subject to an Assured Periodic Tenancy (“AT”). This is a modern form of tenancy that gives the tenant security of tenure (the right to ongoing occupation of the property), but at full market rent. As the sales market for the property is reduced, because it cannot be owner occupied during the tenant’s lifetime, we secured the property at a 19% discount to the surveyor’s valuation. This allowed us to extract an enhanced yield whilst tracking the capital growth of an attractive area undergoing a local regeneration programme.