A design and renovation business has set up a property sourcing business which will find homes requiring renovation.
What’s more, it claims that if it is then given the go ahead to design and executive a restoration project on the property, it will be “adding value upwards of 10 to 20 per cent once complete to a high standard.”
The company - Bespoke Residence Sourcing, just set up by design firm Landmass - says the proposal piggy-backs on recent suggestions that the impact of Brexit on driving down house prices in prime areas has led to a surge in interest for ‘doer uppers’.
A statement from the new sourcing service says: “Having developed and designed over 50 properties, Landmass uses experience and expert knowledge of the Prime Central London market, the team are able to source unmodernised property, both on and off the market, before converting and redeveloping the property to maximise the added value.”
The statement continues: “With current market conditions as they are, the team are able to negotiate substantial reductions off the asking price and hence get the best value for their clients. Saving at a lower purchase price also means less stamp duty.”
And Alan Waxman, founder and chief executive of Landmass, says: “With Brexit and other global political and economic uncertainties there is a lot of scepticism in the market – here lies an opportunity – to capitalize on unmodernised and underperforming properties. This appetite for maximization is the driver behind our newest offer, which provides a holistic service which sources, designs, project manages and delivers newly refurbished luxury properties for the client.”
Waxman gives an example which confirms that, like many properties sourcing firms, this one is aimed at the super-wealthy.
He cites a three-bedroom apartment in Upper Grosvenor Street in London. He claims the unmodernised flat could be secured for £4.95m, £550,000 lower than the asking price of £5.5m.
What the firm calls “the transformation costs” for an 18-month refurb would be £2m “its resale value will be upwards of £8.9m presenting added value of over £1.5m or around 20 per cent.”