Paying £0 council tax while refurbishing a property and finding direct to vendor deals.
If you're interested in doing the above then read on...
As we were conducting our direct to vendor marketing campaigns and speaking to the council about which properties they felt they wanted to be taken off landlords hands because they were causing issues, we stumbled upon the list of properties served with a prohibition notice.
The environmental health officer at the council that does all our HMO license visits was so impressed with our finish and product we're producing that he advised us there are some rogue landlords in the area they are actively targeting and serving a prohibition notice on. He said their mortgage companies will also be served with the notice which made us think this will lead to a motivated seller and a good deal for us.
We got sent a list of properties that had the notice served upon and we quickly started our marketing campaign targeted at those properties, the next day we had a landlord call up saying he has several properties he is interested to sell.
We set a meeting with him that same week and had a look around his properties, the one property that stood out the most was a 3 storey, 4 bed terrace house that would work perfectly for our HMO business model.
He was a very old school type of guy that worked on a hand shake, when we finished the viewing with him he said "are you interested to buy it?"- I replied; "are you interested to sell it?" He said, "yes for the right price". We ended up agreeing a very reasonable figure then and there and shook hands on the sale.
The icing on the cake for us was that we found out the council removed it from the VOA council tax register as it’s not fit for habitat. This meant while the 3-4 month refurb was taking place, all the way to finishing the project and getting it ready for the first tenants to move in, we didn’t have to pay a single penny of council tax.
So, not only did we purchase a 17% below market value property but we also had £500 less council tax to pay which was a win win situation for us. We have a list of these properties we are actively targeting now and they have proven to be very good investments for us.
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