2 days ago
This £5k Brighton parking space is an auction bargain, but is it a good investment?
However, the point I want to draw your attention to is: the car parking space is leasehold, with approximately 63 years unexpired. As the sale is by an executor, I'm presuming the previous owner has died, but that this parking space was also at one stage likely tied to a flat in the building.
As parking spaces don't carry the same rights of renewal as flats do, there's no statutory obligation for the freeholder to renew the lease – although, as the auctioneer replied: 'In practice, why wouldn't they?'
Other people will see the same potential you do
Billy Hart's Quay, Barton Road, Plymouth is a completely different find, and I have to be honest, if you're local or into boating, this is a gem of a lot. This is a quayside plot measuring 0.142 acres (6,186 sq ft) with direct vehicular and waterside access. The auctioneers have said it has development potential and, given the amount of residential development around and the picturesque setting, I wouldn't put it past some entrepreneurial bidder to come up with a novel scheme.
Besides the residential angle, there's also a commercial opportunity for this quay that was constructed by American troops preparing for the D-Day landings. With hardstanding scrubland and access to Hooe Lake, and onward to Plymouth Sound, the English Channel and beyond, this presents several options for potential commercial operators, such as water sports hire, secure boat storage and motorhomes. The auction details also say there could be opportunity to acquire the adjacent slipway and foreshore by separate negotiation.
The watch point on this: I think it's priced at a 'come buy me price'. The guide at £20,000-25,000 will really tempt people who are looking for lifestyle and commercial opportunities. But I think they'll be sorely disappointed in bagging a bargain – I reckon an 'armada' of buyers will be bidding for this, so I expect it to go way over guide.
The importance of asking questions
My third choice is this mid-terrace house located on St Johns Square, Stoke-on-Trent, guided at £23,000. The reason I selected this is because at first glance this looks like a pub. But then I went on Google maps and saw it was a closed barbers, with the upper floors boarded up and in a sorry state of repair. Understandably, I got confused and asked the auctioneers: 'So where is this house?' They replied: 'It is actually to the rear of the building.'
Now, this is an important lesson in buying at auction – you always need to check the legals. As they are not yet available, the auctioneers don't have the title plan, but you can't always go off a photograph and think that's what you're buying.
In a bid to find out more (I always say you have to be a detective when buying at auction), I tracked down the EPC (which expired in 2020), and I have learnt the property is a mid-terrace house with 54 sqm (581 sq ft), and it is rated a 'G'. This then comes with a big explanation mark and the accompanying text: 'You may not be able to let this property.' This is all useful information, should you be interested in this lot.
However, the main reason I chose this property as a watch point was to highlight that it is being sold by the mortgagees (not in possession). This means the auctioneers will not be conducting viewings and, as yet, have not inspected the property. The emphasis on 'mortgages (not in possession)' is important because it means that the former owners of the property may still be living there. If you are bidding, you need to be aware of this.
Also, the fact no viewings will be carried out makes this an incredibly risky buy, as you will not be able to find out what works need doing. The best-case scenario, in my opinion, would be to budget for a full back to brick renovation (and include a new roof) if you don't want to run out of funds.
As auction lots go, this is one where you will be relying fully on the legal pack and your own due diligence to decide if the risk is worth the reward.
