The sheer excitement of metamorphosing from a tenant to a landlord is enough to make most people lose sight of little, yet very important details to watch out for before signing on the dotted lines. I have, over many years in this industry seen many people end up with court cases and endless litigations after purchasing their choice property – residential or commercial.
Below is a list of important facts you MUST CHECK OUT before parting with your hard earned income. Because of the utmost important of this piece, I have decided to make it a 3-part serial so you can get the best out of it. Knowing these facts would save you from a lot of heartaches and help sustain your portfolio.
1. See the City planning office future projections. It is a very common phenomenon to see people sell their property when they realize it was all the while located on a government projected right-of-way such as pipeline, rail line, roads, airports, etc. Also check whether there are any rights-of-way (e.g. for a neighbour) over the land and, if so, whether these are permanent or renewable. If you don’t have current knowledge of the city’s plans, you may fall victim during purchase; and guess what, your property would be demolished sooner or later causing you to lose thousands of pounds due to your lack of elaborateness – or naivety.
2. Confirm legal status. Make sure that the property you are purchasing is not on a list of collaterals for a previously awarded loan to the seller(s), or previously owned by a bankrupt company; ensure that the liquidator won’t reverse the sale and claim it for the creditors.
3. See tax records. Find out from the Council tax offices if there are any unpaid taxes such as property tax or other charges outstanding against your choice property.
.…to be continued!
