At Savills’ Chelsea auction this month, there was a roof space for sale at a guide price of £560,000. Many people attend property auctions hoping to purchase property at bargain prices, but to buy a rooftop space at over half a million pounds requires deep pockets. The roof is at Drayton Gardens in the Chelsea area of London, a short walk from the Kings Road. The roof will appeal to developers as it comes with planning permission to build a two-bedroom penthouse property on the site. This was granted in 2013 Many residential properties in Chelsea sell for seven figures. It is expected that the property built on the rooftop could be sold for £1.6m. The rooftop did not sell at the auction, but remained for sale at the £560,000 guide price. If the roof space is sold for over half a million pounds, then with building costs added, the buyer could make a good profit if they sell the development. Investors wanting to bid at a property auction are expected to pay the full price of the winning bid 28 days after the auction. If the buyer does not have the cash to do this, they can arrange a long-term loan. As long-term finance can take longer than 28 days to arrange, a short-term bridging loan can be used to complete the purchase and repaid after more long-term finance is available. A bridging loan could be used to complete the sale of the Chelsea roof space.
May 10, 2022
