Strettons next auction in London is 4th February and there are quite a few south London properties in this sale. London property auctions are popular, and Strettons often have upwards of 500 people attend their sales. On the day, I am sure Strettons will achieve their customary success, selling the greater portion of the catalogue to property bargain hunters who will attend the New Connaught Rooms in London’s west end for the sale.
There are many south London properties in the sale, and quite a few are under the £150000 mark. One that I am going to look at today in this summary Investment Property report is a bit more than that, but I couldn’t resist because it’s local to me, perhaps 2 miles down the road in West Norwood.
Semi Detached 3 Bedroom 3 Reception House £350000
This property is lot 85 in the Strettons auction catalogue. It is a substantial house in a very desirable and leafy residential road that doesn’t see many sales. This property it seems has not been on the market since 1971. The guide price is £350,000 plus.
Having done a little research on property sales in the area for similar properties, one can assume it would fetch between £420-£450,000 on the open market once it has been modernised.
The local area is served by West Norwood train station. Trains from this station serve East & West Croydon, London Bridge and Victoria, with services run by Southern. The services from the station are quite regular and the station is about 10 minutes walk from the property.
There is a high street with quite a few shops, supermarkets and some quality butchers and fishmongers for those who like to eat healthly.
The property is in need of modernisation and improvement and has an abysmal energy efficiency rating, according to the HiPs pack. However this will be of no consequence to an investor. Investment properties, and those sold at property auctions are often in need of modernisation, including central heating, windows, fixtures and fittings.
The property is a freehold property, semi-detached arranged over 3 floors. It has a cellar, front and rear gardens and a covered yard. The property is offered with vacant possession.
Making an offer “Motivated Seller”
Although this property is not being offered for sale by mortgagees, the fact that it is offered for sale at a property auction lets you know that the seller requires a quick sale. If thy were happy to wait, the property would be placed with a London Estate Agent and sold by “Private Treaty”
This being the case, you could well find it useful to test the waters and make an offer for the property before the auction.
Summary details for this lot which I believe is one to watch, (or if you’re inclined, one to bid on):
- Lot 085, 7 Wolfington Road, West Norwood, SE27
- Guide Price: £350000 plus
- Auction Date: 4th Feb 2008 11am
- Auctioneer: Strettons (in associate with Edwin Evans)
- Auction Venue: New Connaught Rooms, London WC2
- Catalogue Online: Yes
Buying Property At Auction
If you are interested in Buying at a London property auction, you should do far more research than I have done here. This summary Investment Property report simply looks at the given details of the property and uses this to “guesstimate” whether the investment property, on paper, is worth further investigation.
The next steps I would take include
- Viewing the property in person
- Checking the legal pack with the auctioneer
- Engaging a surveyor to survey the property
- Checking out the repair/renovation costs
- Arranging the deposit/finance
- Making necessary legal enquiries
These are just some of the steps that every property investor should take before attending the auction and bidding on an investment property.
Remember, at auction, the property is yours on the fall of the auctioneers hammer. You should have insurance sorted so that if you do win, the investment property is covered in case of problems.
If you do decide to bid on this investment property, I would love to know how you got on. In any case buying a property at a London Auction is fun, so enjoy it. With the market as it is right now, you could well pick up an investment property at a bargain.