Verdonhouse

FRANTIC ONLINE AUCTION SEES BLOCK OF FLATS SELL FOR £109,000 MORE THAN GUIDE PRICE

GracesA freehold block of 13 flats on the Island has sold in a bidding war for £859,000 when it went under the hammer at the latest Clive Emson’s auctions listing. 

Going for £109,000 more than the guide price, Verdon House in Kent Avenue, East Cowes, was among 121 lots listed online across southern England by Clive Emson Auctioneers.

Formerly part of a convent and having recently had renovation works completed boasts 8 1-bedroom flats, 1 studio flat and 3 2-bedroom flats.

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Rob Marchant, the firm’s Island auctioneer, said:

“There were a total of 59 bids on Verdon House, such was the interest from bidders, with the virtual hammer coming down on £859,000, which was £109,000 above the guide price. Based on the purchase price and current annual rental of £67,080, the gross rental yield is 7.81%.”

Currently let at £5,700 per annum, a ground-floor, purpose-built flat with 1 bedroom at 3, Strawberry Heights, Union Road, Ryde, fetched £69,000. There is a 125-year lease from 2008 and gross rental yield on the property is 8.26%.

Let at £25,000 per annum, a freehold mixed property investment at 102 High Street, Newport- between Card Factory and George Bull & Son – fetched £241,000.

Rob said:

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“The ground floor commercial space is occupied by a well-known and Island-wide family-run bakery chain Grace’s, with 6 outlets.

“Above, the two flats are occupied under Assured Shorthold Tenancy agreements – at the purchase price and current annual rent, the gross yield is an attractive 10.37%.”

A freehold self-contained block of 6x 2-bedroom apartments, let at £29,760 per annum and guided at £470-500,000, and located at Flats 1-6 Kingswood, Coronation Road, Cowes, is being auctioned in Clive Emson’s July auction.

Clive Emson’s next online auction ends on 28th July. Lot entries close on 5th July, with the digital catalogue available from 9th July.

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Alan Rowe
Alan Rowe
1 month ago

I understand that a ‘guide price’ in a property auction is usually quite a bit lower than it’s expected selling price in order to create interest and competition.

 

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