We are about to finalise the finishing touches on a contract in East London.
The area is very quaint, and the site is based in the midst of the high street, minutes away from a Central Line station. This will get you to Marble Arch in a mere 30 minutes.
To be honest when I was told it was in the heart of East London, I was expecting a bit of a dump, but I was pleasantly surprised. The area is very light and airy, you have your run of the mill franchise shops, but you also have many independent shops, which adds to the area. The village has a lot of history to it, and has two Churches, which seem like they are from the 17th century.
It transpired that the High Street had been voted London’s best high street a couple of years ago.
All of this is interesting, however, the aim ultimately is to ensure the development we are looking to purchase ends up selling well. This will be driven by demand, and demand will be driven by the factors above; which all seem to be conducive to achieving a good sale price.
The site looked like it was ripe for planning, in my eyes. However, my opinions and perceptions are not the authority here. Our planning expert visited the site, and was visibly impressed.
He was convinced the site would receive planning, the only objections he could foresee was the listed church which was next to the site. Although the proposed development would be some distance away from the church, it may impact it visually.
He researched the issue and found there are seventeen points listed in the listing. He also had experience with the conservation officer for the council, and knows he is a law unto himself.
This knowledge is powerful knowledge. It allows us to anticipate and destroy the objections and moves the council will make, this is dependent upon the individuals within the council. Knowing them, and knowing what makes them tick, is essential in ensuring we do not hit the goal posts when going for planning. We already have a strategy to combat this issue.
This deal is coming in at £3m, and we expect it to achieve a valuation of £7.5m, conservatively. On planning, the valuation will probably be much higher than this.
It is difficult to get funding for sites without planning. Once planning is granted the banks become interested and start to release funds; without planning sites require cash. I guess you wouldn’t want to take a loan even if you could, as there are objections you can anticipate and those you cannot. The pressure of paying loan interest whilst trying to remain focused on the planning objectives doesn’t sound like an attractive proposition.
Saying this, the rewards for this site are high and likely, the architect and the planner are extremely positive. This deal is now seeking an investor. Get in touch if you are interested.
Agony Agent
Each week, we answer a reader’s rental property question, from first-time landlords to experienced owners. Agony Agent, is here to help!
Q: What are right to rent checks, and do I need to do them on my tenants?
A: The simple answer is yes. You, or your agent, will need to check the tenant’s eligibility to rent a property in the UK.
What are Right to Rent checks?
Following an initial trial in the North, Right to Rent checks have been rolled out nationwide affecting all residential landlords. Since February 2016, landlords are required to know their tenants in much the same way as employers are required to know their employees. In particular, they need to know the immigration status of all of their adult tenants. There are exemptions, such as commercial leases, employer provided accommodation, care homes and so on; but for the majority of landlords and agents in the UK this has been an important development. The reason for that is that the penalties are high if mistakes are made, and the law is so new that the worry about making mistakes is real. The Immigration Act slightly improves the position offering more defenses, but essentially due diligence for landlords, and those serving them, got harder in 2016.
The requirements
l Check the original documents for inconsistencies (dates across documents; that they look like the person sitting in front of you etc.)
l Make a full copy of all the documents (front and back)
If they do not meet the guidance, at that point make further checks:
l Note the date of expiration on any leave periods
l Hold the document copies on file with the client’s consent
l Have a system in place to check back prior to the expiration date on the leave that permission has been renewed
Once you are satisfied they meet the right to rent requirements, you can go ahead with the rental procedure. It sounds so simple, doesn’t it??? If this all sound a little too much work, and more red tape that the government has passed on to you, then contact our office. We are more than happy to provide the checks, and even a tenant for your investment.
If you are going to check your own tenant’s validity, then I would suggest that if the tenant does not have a UK passport, visit the Home Office website and read their guidelines.
