Allsop Residential Property Auction February 2013

Allsop Residential Property Auction – February 2013

Interesting observations from property auction

Allsop Residential Property Auction February 2013

This Valentine’s day, Thursday 14th February we attend the Allsop Residential Property Auction in London’s Cumberland Hotel. Never have we seen such a packed out property auction room, it is not a small venue however felt more like a cattle market.

As usual we will bring you some facts of what sold and what did  not sell in the property auction, as well as what properties were bargains and what were bank busters.

Key observations include the expected high priced sales in London in particular in area such as Kensington, Chelsea and Fulham. Properties in North of England did not sell well with most of those present in the auction purely focused on London property. Finally a surprise observation was that of ground rents. These seem to be longer term but much more secure investments, with the bonus potential when it comes to extension or other approvals.

There were many regulated tenancies, therefore sold much below the vacant value of such properties. There was a great deal of lots that were for the unconventional investor.

Property Auction: The numbers!

The Allsop Residential Property Auction featured 288 lots, therefore it was not possible for PropVestment to stay for all. We stuck around until Lot 87, which really meant 72 active lots, with 19 withdrawn or sold prior.

  • Out of 72 lots, 56 sold with 16 where the Reserve was not met. 78% Success
  • Average highest bid was £287k but the average selling price was £237k.   Average unsold lot highest bid was £459k. This shows that the higher value lots struggled, with sellers keeping higher reserves.
  • Average sold lot was 27% higher price than the guide. Where as the average reserve not met lot was 3% under guide.

Residential Property Auction Bargains

  • Lot 61 – 3rd Floor 3 Bed Duplex Maisonette in W13, London, Rent on AST at £22k – Sold for £150k ….almost 15% rental yield…. 98 years lease left
  • Lot 76 – Freehold Public house in Wiltshire with a 9 year commercial lease at £24k rising to £25,880. Sold for £180k…. 14.4% Yield…pays for itself in under 7 years

Residential Property Auction Bank Busters

  • Lot 32 – £1300 Ground rent investment, Sold for £54k, and the leases are 124 years to run, only 2.4% yield
  • Lot 23 & 24 – Ground rent investment in South Kensington, £2k  and £2.4k per annum respective and went for £235k and £460k respectively. However there were flats in the buildings with under 25 years lease left. So the value is instilled with these rather than the ground rent income.
  • Lot 53 – Commercial with 11 years lease, and flat on regulated tenancy in Dorset. Sold for £181k, currently yielding 6%

Upcoming Property Auction’s PropVestment will attend:

Barnett Ross: Thursday, 28th February 2013 12 noon Catalogue now online
Radisson Blu Portman Hotel, 22 Portman Square, London W1H 7BG

Salter McGuiness: Tuesday, 5th March 2013 1330 Catalogue now online
Quality Hotel, Empire Way, Wembley, HA9 0NH

Next Allsop Residential Property Auction Catalogue

Property Auction Final Say

Property auctions still seem like a great place to sell, especially if the property you own is not finance friendly. Meaning that traditional buyers will falter at a mortgage stage. There is a lot of auction activity at the large auctions but there is a massive bias to London.

PropVestment can help you vet potential investments and guide you to make the right choices for selling or buying property in auction. The property market is changing and you need to be fully informed prior to any decision.

Call us today for a chat: 07960 344 399

Previous Auction articles can be found in the Auctions section.

Official Allsop Results

Allsop Residential Property Auction Feb 2013 results

 

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