‘Difficult’ Leasehold properties surprising hits in auction room
Network Auctions latest online auction on 17 March, showed a surprising turn of events: two challenging leasehold properties broke all expectations and sold well beyond guides and expectations.
The sale, which raised £4.8 million and a success rate of 75%, saw a variety of lots go under the hammer, including a car park in Aylesbury which sold for £275,000 (upper guide).
But the standout lots were two leasehold properties located over 140 miles apart.
Pembridge Close, Hereford is a two-bedroom ground floor maisonette with a private garden. Described as needing ‘cosmetic refurbishment’ and a lease length of approximately 38 years remaining, saw excited bidders placing 43 bids taking the guide price of £55,000-£60,000 to a hammer price of £91,000. This was despite the property having a short lease which would cost approximately £35,000 to extend.
Toby Limbrick, auctioneer, said, ‘We were surprised at the mad bidding on this lot and the price achieved. We know it does have a good rental at £700 per month, but expected more people to factor in the cost of a lease extension and the refurbishment works.’
The second surprise of the auction was Flats 1-5, Denzil Avenue, Southampton, a leasehold property for 998 years from 1882. The three-storey semi-detached building arranged as 2 x 2 bedroom and 3 x studio flats were listed as ‘will benefit from refurbishment’. The presence of Japanese Knotweed with a programme of eradication in place, was not enough to deter multiple bidders who placed 83 bids on the property taking the guide price of £300,000-325,000 to a whopping £499,000.
Toby Limbrick, auctioneer, said, ‘I think what attracted bidders to this lot was the potential to add value and create income. The property is situated in an ideal location for landlords offering student accommodation and is close to Royal South Hants Hospital. We estimate the current total annual rental when occupied to be £33,000 per annum.’
Network Auctions next online auction will be held on 28th April. For more information www.networkauctions.co.uk