Developer building Penthouses above my apartment - should I still buy advice wanted

Discussion in 'General Property Investment Discussion' started by simon Bidmead, Dec 14, 2015.

  1. simon Bidmead

    simon Bidmead New Member

    Hello,

    I wonder if anyone could offer me some advice.

    I have had an offer accepted on a top floor 2 bedroom apartment (2nd floor in a small office converted to apartments) that I am planning to live in and keep longer-term as an investment. Part of the appeal of the apartment was the fact it was on the top floor I was hoping it would be relatively quiet as the building would be completed prior to tenants moving in (I was the last person to move into the building).

    However I have recently found out that the developer is planing to obtain permission to build 2 penthouse apartments (on the roof of the building) and this plan was not communicated in the original plans or to myself until the day after I had provided my deposit.

    I am waiting to bet formal plans for the developer to understand the impact, however they have feedback that the penthouses will not be built directly above my apartment but other apartments on the top floor will.

    I am a little concerned on whether this would have a negative impact on the value / desirability of my apartment.

    The apartment I purchased was at £230k and the penthouses are planned to go on the market at £250K. What would any experts advise? and is it likely that this penthouse construction will have a negative impact on my investment? My purchase has not yet completed so I do in theory have the option to not complete the purchase of the property if it would not be a good investment.

    Any advise would be greatly appreciated.
     
  2. Judith Beilby

    Judith Beilby Member Premium Member

    Hi Simon,

    I would certainly go back to your solicitor and check your position. It is difficult to suggest a course of action without knowing exactly what the contract contained.

    I am sure you checked the prices before you exchanged on the flat you agreed on. Was the fact it was a top floor an important element? Do penthouse apartments in the area command a premium? I would get a full set of due diligence before going back to the developer and understand exactly what you want out of the situation before doing so.

    Best of luck.
     
  3. Nicholas Wallwork

    Nicholas Wallwork Editor-in-Chief Staff Member Premium Member

    It does seem rather misleading that the developer didn't disclose that to you. There may be a case for mis representation of they didn't market it correctly.

    As Judith says in not so many words - will the fact that it's not now a penthouse reduce or effect its value?

    More importantly, what is it worth today given it is a 2nd floor apartment in a 3 storey block? If you feel it's still good value them go for it. Do some comparable checks on Rightmove and see what 2 beds are going for and contact local agents to see their opinion... This will all help you assess the deal as you know it today and whether it is still worth going for...

    Hope this helps....
     
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