Advice Archives | Page 5 of 7 | London Property Consultants

The business of buying prime property

Prime Property: Simon Barnes, H. Barnes & Co, talks about the business of buying prime property and the ‘death of buying agents’ ….

I was interested to read a recent article in the Financial Times (subscription required) about an increasing number of buying agents going out of business or throwing in the towel. Before times got tough in Prime Central London, it didn’t make monetary sense among a lot of estate agents for the lazy estate agent ‘Henry Fitzwilliam-Smythe’ to contact other property professionals or properly ‘work’ his database; not when he could sell a property with one phone call and happily take his commission, rather than making two or three calls to achieve the same result.

Prime Property in London

While sloppy buying agents won’t retain good clients and will be ignored by estate agents, the best buying agents who have vetted and carried out due diligence on their clients will now be making their presence felt and more importantly count with estate agents finding the current market conditions in Prime Central London trickier than for some time. Estate agents need to have the ear of those acting for serious buyers, who make the right buying noises and should be picking up the phone to buying agents with a direct access to these candidates and really exploiting this receptive market.

Established estate agencies, who on a point of principle, would not deal with buying agents however talented have or should think again. It’s a tough market out in Prime Central London, and it’s not a question of the fittest, but more about property consultants and buying agents being skilful, knowledgeable, tenacious, experienced and well-connected. Let’s be honest, great properties do not come to those who wait, you need to know who might be tempted to sell, who is selling and where to seek and find the best. Similarly, having access to serious buyers, with funds in place and motivated to buy or invest in property in PCL is a vital component in making the life cycle of a property transaction actually come to fruition. [Read more…]

by Simon Barnes

At your service – facts about service charges

In Prime Central London service charges for luxury buildings have generally gone up in line with inflation.

“The point at which you should be concerned about service charges is if they rise substantially above this rate.” says Simon Barnes of H.Barnes & Co. “This is an indication that there is generally something amiss and potentially a cause for concern unless money is being paid out for major works such as redecoration of the building or the replacement of a lift or communal boiler.”

What are service charges?

Service charges relate to a leasehold property and the associated running costs of the building such as communal heating, hot water, the lighting of communal areas, maintenance and upkeep of the roof and building structure and (in every case) the cost of insuring the building.

Often there is what is known as a “sinking fund” or “reserve fund” which is a charge that is made in addition to, but usually collected at the same time as a service charge, which is set aside to pay for future major works. For example, owners might be asked to pay in an extra £1000 or £2000 per year into a fund which is build up over time to pay for works to the building such as new lifts or redecoration of the common parts, rather than being asked to stump up £15,000 or £20,000 in addition to their annual service charge as and when these works need doing. This is usually the sign of a well-managed building, though admittedly it does benefit people who intend staying put for a long period of time rather than those who will only stay for a year or two. [Read more…]

by Simon Barnes

Are London Mansion Flats a Good Investment?

You will find mansion flats (flats in mansion blocks) in various London areas. The first were built in Kensington in the late 1870s followed by others located in what are now prime London areas; including Mayfair, St John’s Wood and Regent’s Park. Originally build as cheap accommodation for the burgeoning middle classes, many flats fell into disrepair in the 20th century only to re-emerge in the latter part of the century as property prices in London began to take off and mansion blocks were systematically renovated.

Historically purpose-built as flats, rather than the more typical conversions of larger buildings, mansion flats have large regular-shaped rooms, high ceilings, proper walls (not plasterboard) and their stone walls and concrete floors make them much quieter than many of their more modern alternatives.

However, there is a down side as many mansion blocks were not renovated with lifts – an absolute requirement for many of today’s buyers. Also, many older blocks were badly managed which means that current owners suffer high maintenance charges.

Being located in substantial buildings with proper walls and stone floors can also mean that wi-fi is difficult and some flats ‘enjoy’ a low or non existent mobile phone network reception. Many are managed by residents who all have a share of the freehold. Finally, many mansion blocks have been badly converted.

My top 5 tips for buying a mansion flat

For those looking at mansion flats as an investment I would recommend always looking at flats which

have been well maintained and are serviced by a reputable management company
are located in good areas
have modern and reliable lifts
are complete (i.e. not sub-divided) and retain some period features
have good access to wi-fi and telephone signals

by Simon Barnes

Preparing your property for a spring sale

Here are some top tips and seasonal advice from Simon Barnes of H.Barnes & Co on what you need to do to best prepare your property for a spring sale :

OUTSIDE

During the winter months, buyers do not look closely at gardens, but as soon as the weather starts to improve, their focus changes
Don’t neglect to tidy outside space, and ensure roof terraces are in good order with nicely maintained garden furniture on display and planters filled with fresh bulbs and seasonal plants.

Tidy lawns and flower beds and de-clutter, both outside and in.
Buy new garden furniture and a barbecue to give a taste of what the summer will offer.
Spend a bit of time on any paths, windows and doors and paint and freshen up if needed.
In early spring, it is absolutely worth investing time and money in showing your garden, terrace or any outside space to their best advantage.

INSIDE

[Read more…]

by Simon Barnes

Advice on shifting problem houses

“Between now and around early Spring or March vendors who hitherto have struggled to sell should concentrate less on the garden and much more about the look and feel indoors.

Houses need to be warm, bright and welcoming. This is particularly important in the winter months for rooms which are seldom used. In harsh winter light, flaws and tired décor will stand out, so consider decorating, or replacing worn flooring, tiles and replacing jaded fittings, even new bathrooms etc to give the property a fresh impact.

I am often surprised at just how little attention vendors pay to the advice of their agent. Their expert advice is particularly important at this time of year when if a house is unsold by the end of last year, it is unlikely to sell by March. Perhaps the agent will advise that property is too expensive for the market, or perhaps prospective buyers find that it is too dark. If so there is still time to act, do seek advice and really listen to your agent and act quickly on what they advise.

Given that if you vetted from the outset and have appointed a local agent who knows their patch and what similar properties are selling and have sold for, they will be able to bring realism to the pricing and that will unlock serious buyers.”

Simon Barnes, Managing Director at H. Barnes & Co

Prime Property in London

In Prime Central London service charges for luxury buildings have generally gone up in line with inflation.

What are service charges?

My top 5 tips for buying a mansion flat

OUTSIDE

INSIDE

Contact H. Barnes & Co – Tel: 020 7499 3434