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Keen, desperate, or confused? (Northumberland NE23 3LW)


Andersen

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Just noticed a 3 bed house for sale in a decent area I know well (Cramlington, Northumberland, NE23 3LW ). Is this a record - advertised with 4 different estate agents (some say it's tennanted, others look vacant. One agent thinks it's detatched but the others don't...) ? O.o 

 

"Detatched" - "Tenanted investment property" and "Please note that prospective buyers will be required to pay a fee of £900 per unit to Vesta upon acceptance of an offer on this property. The seller of the property will also pay a fee to Vesta." https://www.rightmove.co.uk/property-for-sale/property-59824161.html 

"Link detatched" - "Tenanted investment property" (but no £900 fee)  https://www.rightmove.co.uk/property-for-sale/property-75117473.html

"Link detatched"  - No mention of tennants, photos show it unfurnished https://www.rightmove.co.uk/property-for-sale/property-74275442.html

"Link detatched" - Different photos but still unfurnished / vacant https://www.rightmove.co.uk/property-for-sale/property-68909785.html

 

Not a pattern I've seen before, maybe a sign of the times? 9_9  I know 2 other similar properties nearby, 1 was withdrawn due to no sale after a few months, the other has had no offers for several months.

 

 

 

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Seen it plenty of times back in the 1990's. You don't want to drop the price and all agencies think they are God's gift to selling so every agency is willing to waste time on the off chance that they can sell it. It even made sense back in the 1990s as agencies often had different contact lists...

Then again this is 2019 and the only thing that matters when selling a property is an advert on Rightmove so multiple agencies won't help - the only thing that matters is the price and £175,000 for 3 bedrooms in Cramlington is utterly insane...

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1 minute ago, eek said:

Seen it plenty of times back in the 1990's. You don't want to drop the price and all agencies think they are God's gift to selling so every agency is willing to waste time on the off chance that they can sell it. It even made sense back in the 1990s as agencies often had different contact lists...

Then again this is 2019 and the only thing that matters when selling a property is an advert on Rightmove so multiple agencies won't help - the only thing that matters is the price  £175,000 for 3 bedrooms in Cramlington is utterly insane...

Did you see what they paid for it?  o.O

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2 hours ago, One percent said:

Did you see what they paid for it?  o.O

Yep but that's not that surprising prior to the 2008 crash.

Currently I suspect house prices up North are back to 2004 or so levels and I suspect that property is worth £140,000 or so...

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3 minutes ago, eek said:

Yep but that's not that surprising prior to the 2008 crash.

Currently I suspect house prices up North are back to 2004 or so levels and I suspect that property is worth £140,000 or so...

The country is weird.  In Londonistan, prices are to infinity and beyond. In my home town in North Yorks, they have not moved, other than dropping slightly, since 2008.  Well, apart from those lifestyle places that incomers buy, they too are at kite flying prices.  

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I should point out Newcastle isn't my area - I'm there often enough to just about know that local market but in reality I live very slightly north of the Yorkshire Border...

Mind you to show how much agents lie the property is also up for rent. Care to guess how much the advertised rent is? £900 as one advert quotes? £800 as the other yield based advert claims?

Nope it is £750 (and will probably be rented at £700)... See https://www.rightmove.co.uk/property-to-rent/find.html?locationIdentifier=POSTCODE^1539140&includeLetAgreed=false . Also it's been unlet for at least 2 months....

 

 

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  • Tenanted investment property
  •  
  • 5.5% Gross Rental Yield
  • £9,600 rent per annum
  •  
  • + 19.86% HPI (last five years)

Haha what utter tossers. Even advertising the % hpi now for last 5 years......

 

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All BS on BS but this is he show stopper:

3 bedrooms; 1 bathroom; 1 reception 
Price: £175,950 Leasehold 
Length of Lease: 99 years from 25 March 1984 
Rent: £800 pcm; £9,600 pa 
Gross yield: 5.5% 
Tenancy type: AST 
Tenancy start date: TBC 
Deposit amount: TBC 

You mgith want to pause here.

Who in fuck buys a 190k leasehold with a ~60 year lease.

Youll be laughed out the ban with a lease for less than 100 years. Unmortagble.

And the decider:

https://houseprices.io/?q=Silverdale+Road%2C+Cramlington

 

Id bet good money that these places have all been bought by idiot IO BTL from the South.

 

They are fucked.

 

 

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16 hours ago, Andersen said:

Just noticed a 3 bed house for sale in a decent area I know well (Cramlington, Northumberland, NE23 3LW ). Is this a record - advertised with 4 different estate agents (some say it's tennanted, others look vacant. One agent thinks it's detatched but the others don't...) ? O.o 

 

"Detatched" - "Tenanted investment property" and "Please note that prospective buyers will be required to pay a fee of £900 per unit to Vesta upon acceptance of an offer on this property. The seller of the property will also pay a fee to Vesta." https://www.rightmove.co.uk/property-for-sale/property-59824161.html 

"Link detatched" - "Tenanted investment property" (but no £900 fee)  https://www.rightmove.co.uk/property-for-sale/property-75117473.html

"Link detatched"  - No mention of tennants, photos show it unfurnished https://www.rightmove.co.uk/property-for-sale/property-74275442.html

"Link detatched" - Different photos but still unfurnished / vacant https://www.rightmove.co.uk/property-for-sale/property-68909785.html

 

Not a pattern I've seen before, maybe a sign of the times? 9_9  I know 2 other similar properties nearby, 1 was withdrawn due to no sale after a few months, the other has had no offers for several months.

 

 

 

https://www.home.co.uk/search/results.htm?TOWN_SEARCH=1&detached=true&location=cramlington&maxbeds=3&minbeds=3&radius=2&page=3

They show the price istory i.e. reductions.

These looks like an IO BTL - maybe the same one - trying to exit.

 

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57 minutes ago, spygirl said:

All BS on BS but this is he show stopper:

3 bedrooms; 1 bathroom; 1 reception 
Price: £175,950 Leasehold 
Length of Lease: 99 years from 25 March 1984 
Rent: £800 pcm; £9,600 pa 
Gross yield: 5.5% 
Tenancy type: AST 
Tenancy start date: TBC 
Deposit amount: TBC 

You mgith want to pause here.

Who in fuck buys a 190k leasehold with a ~60 year lease.

Youll be laughed out the ban with a lease for less than 100 years. Unmortagble.

And the decider:

https://houseprices.io/?q=Silverdale+Road%2C+Cramlington

 

Id bet good money that these places have all been bought by idiot IO BTL from the South.

 

They are fucked.

 

 

This site is finally paying dividends (anyone know if the owner signed up here, I think they were on ToS).

 

Even in my corner of the SE:

https://houseprices.io/?q=tn17

Loads of oranges and the odd red - haven't yet seen a dark red like in your link, but can't be long now. Bearing in mind it's all been 100% green for years.

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36 minutes ago, eek said:

This has only been on the market since July 2016 - I'm sure a buyer will be along soon.

https://www.onthemarket.com/details/2914143/?utm_source=home_co_uk&utm_medium=cpc&utm_campaign=home_feed

He is not giving it away you know.  You would think the penny would have dropped by now that it is only worth what someone is willing to pay

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3 hours ago, spygirl said:

All BS on BS but this is he show stopper:
Length of Lease: 99 years from 25 March 1984 

Who in fuck buys a 190k leasehold with a ~60 year lease.

Youll be laughed out the ban with a lease for less than 100 years. Unmortagble.

The market in Cramlington is unusual, many homes were built pre/post-war and are freehold but a lot more have been built since the late 60s. The ground was owned by 2 main builders at the time - they sold completed homes as leashold with 99 year terms. It has been reported nationally that many homes in the area are now <50 year lease remaining so are unmortgable. Getting the vendor to buy the freehold or buying for cash happens a lot more than in other areas.

It's a modern & decent estate with an easy commute to Newcastle so asking prices £150k-£200k are not unusual, shame the market has stalled and the lease isn't helping.

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Just found 3 more adverts for the same house o.O 

Rent for £800 pcm https://www.rightmove.co.uk/property-to-rent/property-68798854.html

Rent for £70 pcm https://www.rightmove.co.uk/property-to-rent/property-75218339.html

Rent (local agent) for £750 pcm https://www.rightmove.co.uk/property-to-rent/property-75218339.html

 

They're determined, I'll give them that :o 

 

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40 minutes ago, Andersen said:

The market in Cramlington is unusual, many homes were built pre/post-war and are freehold but a lot more have been built since the late 60s. The ground was owned by 2 main builders at the time - they sold completed homes as leashold with 99 year terms. It has been reported nationally that many homes in the area are now <50 year lease remaining so are unmortgable. Getting the vendor to buy the freehold or buying for cash happens a lot more than in other areas.

It's a modern & decent estate with an easy commute to Newcastle so asking prices £150k-£200k are not unusual, shame the market has stalled and the lease isn't helping.

I think a lease less than 80 years is unmortgable these days.

If they want to sell then they need to buy the freehold first. Leaseholds have a well deserved bad rep now.

Looking at the sales data, i would guess cramlington is a io btl hotspot. Or was.

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1 hour ago, Andersen said:

The market in Cramlington is unusual, many homes were built pre/post-war and are freehold but a lot more have been built since the late 60s. The ground was owned by 2 main builders at the time - they sold completed homes as leashold with 99 year terms. It has been reported nationally that many homes in the area are now <50 year lease remaining so are unmortgable. Getting the vendor to buy the freehold or buying for cash happens a lot more than in other areas.

It's a modern & decent estate with an easy commute to Newcastle so asking prices £150k-£200k are not unusual, shame the market has stalled and the lease isn't helping.

I vaguely remember reading that

https://www.thisismoney.co.uk/money/mortgageshome/article-3218828/Cramlington-town-costs-13-000-sell-house.html

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On 04/02/2019 at 15:00, spygirl said:

All BS on BS but this is he show stopper:

3 bedrooms; 1 bathroom; 1 reception 
Price: £175,950 Leasehold 
Length of Lease: 99 years from 25 March 1984 
Rent: £800 pcm; £9,600 pa 
Gross yield: 5.5% 
Tenancy type: AST 
Tenancy start date: TBC 
Deposit amount: TBC 

You mgith want to pause here.

Who in fuck buys a 190k leasehold with a ~60 year lease.

Youll be laughed out the ban with a lease for less than 100 years. Unmortagble.

And the decider:

https://houseprices.io/?q=Silverdale+Road%2C+Cramlington

 

Id bet good money that these places have all been bought by idiot IO BTL from the South.

 

They are fucked.

 

 

As well as the obvious prices returning to ~2004ish, at least in real (and in some cases nominal) values.

The biggest *Danger* sign is look at the number of sales 2002-2008, then 2008-2019

There are several sales a year for the road. In fact 20062007 peek 'Lets buy a rental in North - there 10ish sales each year.

Falls off cliff in 08. No sales 09 and 10.

2 sales in 2011. 1 sale in 2012

Picks up slightly for a couple years, then back to 1 sale 2016. Slight pickup, then only one sale in 2018.

I reckon that the majority of sales 2004-2016 will have been BTL.

These people are going to have to unload ~40 houses into a market that only cleared an average 3 - 4 houses a year.

 

 

 

 

 

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sleepwello'nights
On ‎04‎/‎02‎/‎2019 at 15:00, spygirl said:

All BS on BS but this is he show stopper:

3 bedrooms; 1 bathroom; 1 reception 
Price: £175,950 Leasehold 
Length of Lease: 99 years from 25 March 1984 
Rent: £800 pcm; £9,600 pa 
Gross yield: 5.5% 
Tenancy type: AST 
Tenancy start date: TBC 
Deposit amount: TBC 

You mgith want to pause here.

Who in fuck buys a 190k leasehold with a ~60 year lease.

 

 

How much would it cost to buy the freehold?

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2 minutes ago, sleepwello'nights said:

How much would it cost to buy the freehold?

More than it would have 20 years ago.

I dont know.

But if I was one of the very few buyers in that area I would not consider anything like that.

Get the seller to buy the freehold before they try and sell it.

Id also be worried as the lack of freeholds in the area woill crash prices.

 

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2 hours ago, sleepwello'nights said:

How much would it cost to buy the freehold?

Not sure about freehold costs. Last year I enquired about leasehold for a flat with 48 years remaining, was quoted over £3k to renew/extend it to a 125 year lease (downside was ground rent would increase from the existing annual £12 peppercorn rent to £150 with built in increase every 10 years.). Costs are rising as sellers often have no choice but to pay the price asked.

2 hours ago, spygirl said:

I'd also be worried as the lack of freeholds in the area will crash prices.

Good point - it's not unusual to see unmortagable properties for sale there at reduced prices, give it a few more years and there expect many more for sale with short leases / expensive renewal costs attached.

Cramlington - potentially a disaster zone in a couple of decades?

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2 hours ago, Andersen said:

Not sure about freehold costs. Last year I enquired about leasehold for a flat with 48 years remaining, was quoted over £3k to renew/extend it to a 125 year lease (downside was ground rent would increase from the existing annual £12 peppercorn rent to £150 with built in increase every 10 years.). Costs are rising as sellers often have no choice but to pay the price asked.

Good point - it's not unusual to see unmortagable properties for sale there at reduced prices, give it a few more years and there expect many more for sale with short leases / expensive renewal costs attached.

Cramlington - potentially a disaster zone in a couple of decades? yearss

Seriously. Disasters here now. There places were built in late 80s.

30 years on now.

 

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On 03/02/2019 at 23:06, Andersen said:

"The seller of the property will also pay a fee to Vesta."

I think I'd rather take a chance on their curry than one of their 60 year leasehold houses! :D

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