UK House Prices and Repossessed Houses for Sale

Current List of UK  BMV Properties for Sale
Click Here and Fill in Form

UK House Prices

House Prices for Repossessed Houses sold at Auction

The latest Allsop auction offered 1,100 properties for sale with 18 homes selling for less than £100,000. Lets take a look at the investment opportunity that this offers.

Lot 786 – Three bedroom flat in council block in Brixton. Estimated value in Oct 2007 was £180,000. Sold for £79,000 – Council flat, with its proximity to Brixton Station and Victoria Underground makes this a very cheap London purchase. When you take a look at asking rents for 3 bedroom properties in Brixton on the Gumtree.com the price varies but the lowest of the low is still around £220 per week.

Now lets take a look at this as an investment. In simple terms £220 per week = £11,440 per year, less vacancy of say 2 weeks you are at £11,000 per year. You must also take into consideration insurance and repair which might equate to £750 per year on average. Management fees? So you are netting approximately £10,250 per year. Therefore £10,250 / £79,000 = 13% yield. Which is excellent. Compare this to what you get in the bank and at some point this flat will rise in capital value. It looks like a good investment if you can get a mortgage.

Lot 101 – One bedroom flat in part timbered block in East Dulwich. Estimated value in October 2007 was £240,000. Sold for £100,000. Located in Zone 2 with 6 trains an hour to London Bridge. If you search through Gumtree.com for 1 beds in East Dulwich the lowest asking price is approximately £180 per week. This low rent equates to £9,360 per annum less vacancy of two weeks per annum, call it £9,000 per annum. Again, you must also take into consideration insurance and repair which might equate to £500 per year on average for this smaller property. Management fees? So you are netting £8,500 per year. Therefore £8,500 / £100,000 = 9% yield. Which is very good. It looks like a good investment, if you can get a mortgage at a rate of say 6.5% then you would be able to pay your interest off and some of the capital.

Lot 766 – Two bedroom flat in Victorian semi in Forest Gate. Estimated value in October 2007 £235,000. Sold for £95,000. Trains are direct to London Liverpool Station with typical off peak service of 6 per hour. Searching the Gumtree.com finds rental levels for 2 bed properties at an average low of £175 per week but this is a Victorian semi and if you search for that specifically in Forest Gate rental levels seem to be closer to £210. We will assume £195 per week which is £10,140 per annum, less vacancy of £390 (2 weeks rent) and repairs insurance of £750 and we net approximately £9,000 per year. Therefore £9,000 / £95,000 = 9% yield. Again very clean and easy investment not using wild assumptions.

We don’t know the condition of any of the properties. We have assumed reasonable condition but you should probably expect to pay a further £1,000 for the one beds and maybe up to £2,500 for the 3 beds to bring them up to rental standard. Maybe change the kitchen benches over, paint the walls and doors, buy some blinds and if your furnishing it, get some IKEA furniture. Or save money by doing it yourself, but remember every week its not complete you have lost that amount in rent. Time versus money is crucial when looking at investments.

Freehold or leasehold? Freehold is worth more as you do not have to pay any leaseholder a service charge yearly. If these are leaseholds with less than 80 years on the clock then automatic renewal of the lease has expired and you will have to take into consideration marriage value, so you could be up for an additional £3,000 to £8,000. So take a look at the lease expiry date.

Upon writing this, we do not feel that the rental levels could be looked upon as high. In fact we assumed the lowest levels for each product given its suburb when compared to the many entries at the Gumtree.com

So maybe its time to buy as house prices are low? Better than interest in the bank and then wait for the capital value to climb!

Please share your experiences on buying UK properties.

Join the discussion 27 Comments

  • Wayne says:

    I keep listening to the news speak about getting free online grant applications so I have been looking around for the best site to get one.

  • Simon Weedon says:

    Am looking to buy repossessed house in Exeter area can you give me a list of houses in Exeter area?

  • Mrs Shah says:

    I am looking to buy repossessed properties in Harrow, Ealing, Action and Hanger land, Northolt and Perival.

    Please let me know if you have properties in the above mentioned areas.

    Thank you kindly
    Mrs Shah

  • nelson cabral says:

    Hi we are looking for repossed houses in the south east london area. We would like norbury, strethma,thorton heath, crystal palace, penge, brockey dulwich, any where in the south east of london. we are looking for 2 or 3 bed with a garden.

  • Mel says:

    Hi, We are looking to buy a repossessed house/flat in Ealing(or anywhere in north/west london). Can you please email me a list of properties.

    Regards,

  • dak patel says:

    Looking for repossessed properties in east london.

  • Tamal says:

    I am looking for 4 bed rooms repossessed house in Ilford area.

  • disandland says:

    Those of you searching for repossessed properties to buy should take a look at the specific advice pages on this site, where links are given to some useful repossessed property finding sites. A good place to start is the Repossessed House Auctions article.

  • Michael Thompson says:

    If you are want to purchase a repossessed property in any specific area in the UK, it is best to find out which houses are being sold by auction.

    A lot of the houses sold at auction are repossessed. Try:
    FindaProperty.com they have most of the UK houses for sale, selling through estate agents.

    You can search for houses in your desired area, then look for houses that are selling via auction. Once you have a few properties, contact the estate agents and find out which houses are repossessed houses.

  • douglas mackie says:

    i am looking for repossessed property in dundee area

  • Harpaul Kalsi says:

    I am looking for a repossessed house in Ilford London? Preferably a 2/3 bedroom house.

    Regards
    Kalsi

  • sonia says:

    I am looking for a repossesed house in bowdon (cheshire)and hale(cheshire).I am looking for a detached 4/5/6 bedroom house.please let me know if any.

    thanks
    Regards sonia

  • maria says:

    Hi. I am looking for a two to three bedroom repossessed house in east dulwich or blackheath area. Have you got any?

  • Raja says:

    Looking for a house below Market value can move very fast. Thanks

  • jeet says:

    I am looking to buy repossessed properties in Harrow
    Please let me know if you have properties in the above mentioned areas.

    Thank you kindly
    Jeet
    10/12/10

  • Gordon Stewart says:

    Hi I am intersted in buying a reposessed bungalow in the Edinburgh are/outskirts, could you please
    advise on sites as I am currently in South Africa and way of the pace.

    Thanks
    Gordon Stewart

  • John says:

    I can see that many of you are looking for repossessed houses for sale in particular areas.

    It can be really difficult to find a repossessed house for sale within a small area.

    After a while I got frustrated by the fact I could not find a repossessed house in Hackney, London. So I started looking for a repossessed house anywhere in London and was able to buy one.

    I found the investment property after I filled in this form: http://houserepossession.co.uk/auction-properties-list

  • Pakkia says:

    I am looking for a repossed flat in london area – must be less than 100,000- 1 or 2 bedroom , contact me via email . tq

    Pakkia.Letchumi@mys.fujixerox.com

  • gloria jones says:

    I am looking for a 4 bedroom house with off road parking in the Isle of Thanet, or Hastings or Hythe area costing no more than £80,000

  • Albena says:

    I am looking to buy a repossessed property in Exeter area, costing no more than £100-110,000.
    Can you give me some suggestions?
    Please, contact me via e-mail.
    Many thanks,

  • Guida says:

    I’m looking to buy a repossessed property in east london. I’m looking for a 2-3 bedroom house with a garden. Could you please send me a list of the houses you have by email. Could you please let me know as soon as possible thank you.

  • Im looking for a repossessed 2-3 bedroom houses with gardens costing no more than £150.000 175.000 could you please send me a list of houses you have by email.as soon as possible thank you.

  • looking for the house in south east London thank you.

  • Beverley Sappleton says:

    I looking to buy a reposed house in Brixton, £240-280. Could you please send me a list of houses you have by email.as soon as possible thank you.

Leave a Reply