This two bed apartment is in the heart of Chichester. It appears to be in good condition with gas central heating, a modern kitchen and shower room. It's listed with Hamptons for £280,000 but has now just flagged up with a £100,000 reduction!!
So, what's the catch?
Well...it's new £180,000 'guide price' is because it's set to go under the hammer at Allsop's auction on the 18th February. That means it could sell for any figure that someone feels it's worth paying on the day.
It should rent quickly at around £875pcm, so if you could pick it up for it's £180,000 guide price you'd receive a yield of around 5.8%.
Sound's like a bargain right?
Well...it's a flat. I know, I know, "he's always banging on that houses are better than flats". But this apartment is a case in point as to why. Firstly, it's likely to be unmortgageable as it only has 63 years left on the lease. That'll cost a tidy sum to renew it back to a more secure 99 or 125 year lease. Secondly, it comes with service charges of £1,000 a year, which is enough to wipe around 10% of your annual return.
If it's picked up around the guide price then it really would be a great buy for someone able to pay with cash and spend the time and money renewing the lease. Whilst this process is undertaken it should prove to be a sought-after rental property amongst tenants seeking a good sized apartment in the heart of Chichester's city centre.
It is on the market with Allsops and full details can be found on Rightmove via the following link:
http://www.rightmove.co.uk/property-for-sale/property-52838050.html
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