Today, Friday 9th February 2024 the full crew of volunteers at Unique Property Bulletin will be away for 3 days, so we found an extra special treat for you. Really special: The Gate House, Victoria Park, DOVER, Kent, CT16 1QR. This gem FAILED to sell at AUCTION last year at £150,000. Currently the LPA Receiver is desperate to sell. We are fairly certain £90,000 cash would be looked at seriously. But here’s the thing, we ended up buying the Isle of Wight ferry from the administrative receiver at just £5,000. We bought (or rather the charity Iain Sim and Russ McLean started) bought the TS Queen Mary for £20,000. Just twenty grand. The Port Authority were keen to sell TS Queen Mary after the ship had been seized for non-payment of harbour dues. What has the Gatehouse got in common with these ships? The receiver is desperate to sell and the Gatehouse has a problem (eminently curable). So much so that we reckon £20,000 would secure the Gatehouse. But PLEASE get the building surveyed AND check the current auctioneers Trustpilot rating. Curious? Have a read of our special article: https://uniquepropertybulletin.co.uk/the-gate-house-dover-ct16-1qr/
F.T.S.A.
Failed To Sell At Auction
Today, Friday 9th February 2024 and we have a Unique Property Bulletin treat for you that was sent in to us by one of our very helpful readers. This gem is known as: The Gate House, Victoria Park, DOVER, Kent, CT16 1QR. It is properly quirky. So much so, it featured on the holiday scene for many years. But now it looks a tad forlorn. Worse, the Gatehouse FAILED to sell at our favourite Barnard Marcus AUCTION last year at a guide of £150,000.
Currently this building is in the custodianship of the LPA Receiver. In our experience, once a building is in the hands of the administrative receivers, they want it OFF of their books and FAST. A quick cash sale. When we see an LPA and an FTSAA mentioned in the same sentence, our Bat Radar for Mischief In Property switches on.
So why is the Gatehouse going through a second auction and at a reduced guide of £120,000?
Because it is leasehold and only has 66 years left on the current lease.
At this point the majority of folk in an auction hall will say “next” and walk on by this very rentable and eye-catching building.
But think about this please: how old will you be in 66 years?
91 year old? So does the fact this is leasehold and not freehold matter?
Besides, many long-leaseholds have a RENEW LEASE CLAUSE. Often, because of inflation, it turns out to be relatively low. We have seen £5,000 to £10,000 be the amount you have to pay some charitable trust or university endowment fund to renew for another 100 to 500 years leasehold.
The really old/long leasehold buildings sometimes have “5 cows of good fettle and milking age, withe 6 sheep and a dozen hens of ye laying desirement.’ Or “6 Guineas and three groats) that is groats, not goats. So we’ll worth putting your legal anorak and studying the terms of the leasehold. Especially the renewal part.
Even if you are not entitled to renew, what happens next (and we heard whispers that legislation is being brought forward to make it mandatory to allow for fir value renewals to both a tenant and landlord/lady).
Well you are in a mighty good negotiating position with the LPA receiver. Their sole purpose now is to liquidate these bricks and mortar into cash. Not haemorrhage cash the wrong way by having to pay fees and insurance and council tax etc.
Back in the days where your host here was on the right side of 40 years, I put a very cheeky offer in for an LPA asset and ended up buying the aisle of WIGHT FERRY AT £500. We needed to spend £5,000 to plate the hull so the ship could be floated and tugged out of David Able’s dry dock in Bristol. So please be careful when you wave at an auctioneer. Your wee paws can really get you into properly deep mischief.
Right now we are tempted to offer £9,000 to £14,000 as a good bet. Of you don’t ask!!!
But we have nine Unique Property Syndicates on the go right now and a castle turret style house in Dover would dilute the focus we have on the actual assets sitting on our Unique Property Bulletin and our collegiate shareholders’ plates.
What if YOU studied the legal pack and had your lawyer look at it? What if you had an RICS survey to MSE if there is any nasties such as dry rot?
What if the lawyer said the lease was good at the declared £45 ground rent each year was cast-iron. Plus the surveyor says the building structure is good (just needs a modest makeover.
We reckon if you offered £90,000 cash, the LPA Receiver would most likely say YES.
But before you go off like a rampant windmill with all your arms waving, just do the math.
Very rough numbers…
Purchase price: £90,000.
Auction & Legal Fees: £4,000.
Modest makeover: £5,000.
That means you have 66 years at £45 a year ground rent and £99,000 up front. With a good chance your grandkids will have the right to extend the lease 00 to 00 more years.
That gets you an awesome building, for which YOU have the keys and POSSESSION for 66 years. Divide £99,000 by 66 years equals £1,500 a year for the Gatehouse (plus £45 ground rent each year).
Long~story~short, is the Gatehouse worth £1,545 a year?
That equals: £128 a month.
or £29 a week
or: £4.23 a day.
No be honest please… how do you feel about “short-leasehold” property now?
We would be reaching for the cheque book today for this. But we are busier than ever (and Unique Property Bulletin started in 1987). So fair is fair: over to you…
=> Old 2023 Barnard Marcus Auction details: htp //archive.is/BPkE9
=> 3D interactive viewing: htp //app.immoviewer.com/portal/tour/2993994
(we’d need to put a ladder up through the ceiling and onto the top of the round tower)
=> Holiday photos and rental rates (money inbound): holidaycottages.net/book_the-gate-house.htm#
=> current sale details at £120,000… rightmove.co.uk/properties/142742552#/
bonne chance mes amis
