Sourcing London Property Below Market Value

It is challenging to find good investment property in London below today's market value. London property sales are robust and most property is sold at or very close to the market price.

To buy below market value in London we have to find 'off market' property from distressed sellers. Our London property is sometimes sourced directly from a distressed vendor, but more often we find investment opportunities through receivers, liquidators or directly from banks.

If the property is a new conversion or development, the process is often different and we may deal directly with the developer or builder.

We are often asked by clients why vendors should offer our clients a large discount, below market value. The answer is that we offer the vendor five distinct benefits for offering their London property for sale to Axis clients:

Speed - time is critical if the vendor is financially pressed. Our goal is to find investors within days. This can contrast with many months on the open market, even in London.

Volume - a vendor may be selling one or two units a month. Axis frequently finds investors for up to 20 units in a very short time wherever in London the property is located.

Certainty - on the open market as many as 40% of property transactions fail to complete. Our track record demonstrates our investor's ability to complete their property purchase with a high degree of certainty.

Off-market - we sell 'quietly' to our registered investors. Therefore a vendor can also continue selling (if they wish) on the open market and still achieve quick sales through Axis for a proportion of the available London property.

Selling tenanted - Our investors love tenanted property so there is no need to remove tenants prior to sale. Tenants who vacate can cost the vendor a lot of money in lost rent and council tax, particularly in London.

Below market value negotiations

As you've seen, Axis can deliver substantial benefits for London property vendors who need to achieve sales quickly. In return, we demand substantial discounts for our investors - providing them with London investment property way below market value.

The discount varies considerably depending on location, type and size of property and the current situation of the vendor.

As a guide, discounts on London property for investment are typically between 15% and 20% from the current provable open market value, although we have had rare opportunities for London investment with discounts greater than 30%!

In general the discounts on London property are lower than the rest of the UK which reflects a much lower supply and great demand.

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