Your Questions on Derelict Properties Answered

There are over a million empty homes across the United Kingdom. Many of them are being put up on the market for sale as derelict properties. For a first time property investor who wants to take the first step up the property ladder or a seasoned buyer out to add to his portfolio, buying a run-down property for next to nothing can lead to a very good investment.

With these properties usually uninhabitable at their current state, the property investor has his work cut out for him. Many of these abandoned properties have fallen into a state of disrepair that a major overhaul is usually needed. If you invest in a derelict property, make sure that you are financially ready to undertake a major renovating job. Moreover, be prepared to face the physical and emotional stress that comes with the repairs and refurbishments. But don’t let these difficulties discourage you. Many investors have found profit and success in wrecked properties and there is no reason why you shouldn’t too.

Where do I find a derelict property?

Most of the time, the best way to spot a derelict property is if you drive by one. Scour your area for run-down houses and buildings and then check with the Land Registry to see if the property is up for sale and find out who the owner is. You can also check with local authorities who might have a list of empty properties in the area. Your planning office is a good place to start as they often have a listing of empty properties with pending planning applications. Finally, it is also a good idea to go online. There are a host of websites all over the UK who specialize in empty homes and derelict properties. You can also find leads online as these websites can give you the information on dilapidated properties in the market and also on areas with a high concentration of such properties.

How do I purchase a derelict property?

Not all derelict properties are being put up on sale. Even if the property has been neglected for quite some time, do not expect that the owner would readily part with it. In areas where derelict properties are concentrated, most local councils put them out for sale for virtually next to nothing, but with strings attached. This process is called homesteading. In an attempt to regenerate areas that have been left in disrepair, the government sometimes sells these derelict properties to certain people in exchange for an agreement that the owner would stay in the property and invest in its renovation.

If you do not fit the bill of a homestead grant, then your best bet is to purchase a derelict property through an auction. Buying at an auction is one of the fastest and easiest ways to get your hands on properties for a price well below market value. Most sellers at an auction are looking for a quick sale at an ‘as is where is’ condition. Thus, buyers also need to be extremely careful when purchasing at an auction. It helps to have a survey done beforehand.