Brixton Clifton Mansions former squats - background, 2011 evictions and latest news

[Rushy]

Is that on the Lambeth website anywhere?

How many flats in Clifton? Must be at least 20 or 30? It's been a while since I've been in.....

Not official afaik. I know an acquaintance of the chap who bought it- could be wrong.
There are 22 flats all between 60 and 75 sqm (except for two which are about 30sqm). Reckon they'll probably apply to get another 4-6 on the roof. It also includes 4 shops although IIRC the leaseholders have to be offered an opportunity to buy long leases.

 

[Brixton Hatter]

Cheers

So....22 flats at, say, £300,000 each = £6.6m. Double your money (almost.)

 

[TitanSound]

Cheers

So....22 flats at, say, £300,000 each = £6.6m. Double your money (almost.)

Not really. They still have to refurbish and develop it. That will cost a fair bit. But still, they will coin it in.

 

[Rushy]

Cheers

So....22 flats at, say, £300,000 each = £6.6m. Double your money (almost.)

I think you are probably about right on average resale values - maybe a little high. But there is a huge amount of work to do to get them to that stage. Build costs could easily reach the million mark. Stamp duty will be alone will be over a quarter of a million. Finance easily another 300-400,000. And the buyer has to pay the council's sale fees (3%).

 

[Brixton Hatter]

ah, so the developers will probably only make a million or so

 

[Rushy]

ah, so the developers will probably only make a million or so

Reckon they'd make a 25% profit over about 18 months if the market stays flat. It's a good return but I don't think that's obscene given the amount of work involved.

 

[Brixton Hatter]

maybe Lambeth should get in to property development...

 

[Rushy]

maybe Lambeth should get in to property development...

They should but they'd be rubbish at it because they would be horribly inefficient losing any profit in extra build costs and professional fees.

I remember being at a meeting before Windrush Square was due to be remodelled and the council announced that thy had a budget of £50K to improve Tate Gardens. In the end that money bought the reduction in height of the low brick walls around the old grassy areas and very little else. A developer would have got the same work done for £10k or less.

 

[jeremyclyne]

Cost of Clifton Mansions evictions was apparently £380K, according to an FOI response reported here: http://www.squashcampaign.org/2012/...0-so-security-firm-can-treat-exploit-tenants/

 

[editor]

The flats are now available for rent. £2,100 per month.
http://www.brixtonbuzz.com/2013/06/...ons-brixton-on-the-market-for-2100-per-month/

 

[leanderman]

Is Lexadon holding on to all the flats to let them? Or will it sell some?

 

[editor]

Is Lexadon holding on to all the flats to let them? Or will it sell some?

I haven't seen any for sale yet.

 

[mxh]

At £2,100pcm they make a good investment, why sell if you think the prices are yet to reach the peak. George Osbourne's trying to ramp up the housing market so there may well be some scope for further gains.

 

[cuppa tee]

Is Lexadon holding on to all the flats to let them? Or will it sell some?

AFAIK Lexadon are only in the business of renting.

E2a this Is confirmed by their website....... http://www.lexadon.co.uk/about/overview .......you have to click the little I icon to read the blurb btw

 

[editor]

AFAIK Lexadon are only in the business of renting.

E2a this Is confirmed by their website....... http://www.lexadon.co.uk/about/overview .......you have to click the little I icon to read the blurb btw

That photo shows the back of the Viaduct development. I thought those units were supposed to be commercial use only, but there's people living in there now.

 

[editor]

Here's one of their developments in Edgeley Road, Cla'am. It's not exactly a looker.

 

[Rushy]

Here's one of their developments in Edgeley Road, Cla'am. It's not exactly a looker.

It replaced an industrial building (glaziers) with a similar brick street frontage and first floor. That has been maintained.

The principle is fine but it hasn't been built quite to plans from what I could see - detailing is different and choice of window/door materials is poor. Permission is currently being sought to convert the ground floor from office to resi.

 

[editor]

The principle is fine but it hasn't been built quite to plans from what I could see - detailing is different and choice of window/door materials is poor. Permission is currently being sought to convert the ground floor from office to resi.

It's the cheap looking windows and doors that make it look so awful.

 

[Rushy]

It's the cheap looking windows and doors that make it look so awful.

Yep. Darker profiles would look a bit better but oak would look great.

 

[Pickman's model]

editor shouldn't this thread be given a more meaningful title if discussion's going to continue?

 

[cuppa tee]

In the Brixton Buzz piece we are told the following.........

The 1920s mansion blocks contains 22 self contained flats and once played a significant part in the local music and arts scene, with alternative musicians and artists such as members of The Pogues and the Turner Prize winner Jeremy Deller squatting there.
I suspect that price tag will be out of reach for many of the new generation of local artists and musicians
Estate Agents Haart are currently offering three bedroom flats in the building for £2,100 per month.

.... and while the cost is definitely high we should also consider another thing which comes up on the Lexadon website namely that tenants are fully vetted and referenced. so much of the rental market is in the clutches of management companies there is little chance of anyone in areas such as music, art, or many of the 'alternative" fields of employment getting their mitts one one because even if they are making a decent living they would find bank or employers references problematic as the management companies do not look favourably on anyone who is not in conventional salaried jobs.

 

[Rushy]

In the Brixton Buzz piece we are told the following.........

.... and while the cost is definitely high we should also consider another thing which comes up on the Lexadon website namely that tenants are fully vetted and referenced. so much of the rental market is in the clutches of management companies there is little chance of anyone in areas such as music, art, or many of the 'alternative" fields of employment getting their mitts one one because even if they are making a decent living they would find bank or employers references problematic as the management companies do not look favourably on anyone who is not in conventional salaried jobs.

Anyone renting anywhere through almost any agent in London will be referenced and vetted. Lots of private ones too.

 

[CH1]

What intrigues me is why Clifton Mansions was not a serious fire hazard. Must be same sort of vintage and construction as Carlton Mansions.
Has the Lambeth Council legal department in pursuing it's eviction programme against Carlton Mansions got similar objectives to what happened at Clifton Mansions and at least one block in Rushcroft Road - i.e sell off to Lexadon, Golfrate or some similar outfit which would totally renovate the block and let out at £2000 per flat per month?
You know how disconnected Lambeth Council can be - one department could be working with the community whilst another is pursuing a commercial outcome.

 

[cuppa tee]

Anyone renting anywhere through almost any agent in London will be referenced and vetted. Lots of private ones too.

I wasn't saying Lexadons tactics are unique but rather symptomatic generally and possibly one reason why our city ( and others nationally and globally) are becoming blander and, just crapper, if you look at golf rates website you will see their promise to get value added from buildings and premises under their control, which is sort of news speak for what could be looked at as s a form of social fracking.

 

[leanderman]

AFAIK Lexadon are only in the business of renting.

E2a this Is confirmed by their website....... http://www.lexadon.co.uk/about/overview .......you have to click the little I icon to read the blurb btw

Read a few stories recently about big financial organisations buying up London housing to let it out, like Lexadon.

 

[Rushy]

Read a few stories recently about big financial organisations buying up London housing to let it out, like Lexadon.

Lexadon is one guy who has done property pretty much exclusively in Clapham and Brixton since the 80s.

I imagine he is a target to be bought out by a financial organisation.

 

[editor]

Lexadon is one guy who has done property pretty much exclusively in Clapham and Brixton since the 80s.

I imagine he is a target to be bought out by a financial organisation.

It's a husband and wife team. They made their millions flogging off ex-council properties. They're valued at £50m so I manage they'd be able to fend off takeover bids.

Rich List 2011
Owned by its directors, husband-andwife team Jerry, 55, and Janet Knight, 53, Lexadon is a London-based property
company.
Jerry Knight left school and went to college to retake A levels but dropped out and followed his wife’s brother into the plumbing trade. After four years with a small firm in west London, he met a fellow plumber who played in the same football team and they started Lexadon in 1980.
They did plumbing and central heating in various projects across London for property developers.

After working all hours, they saved enough to buy a three-storey house just off Clapham High Street in 1982. They converted it into three flats and sold them
on for a small profit.

For the next 18 years, Lexadon was active in Clapham and Brixton, buying up and converting properties, often problem homes bought at auction from Lambeth council.

Knight’s partner left in 1986 for Australia. In 2000, Lexadon moved to work on bigger developments. It retained many of the properties and its net assets came in at £30.2m in 2010. Other assets and property take the Knights to around £50m.

"Working all hours." What, you mean just like normal people?

http://www.estatesgazette.com/pdf/eg-rich-list-2011.pdf [pdf file]

 

[Rushy]

It's a husband and wife team. They made their millions flogging off ex-council properties. They're valued at £50m so I manage they'd be able to fend off takeover bids.

When you say 'fend off' are you perhaps imagining a hostile takeover bid? If someone owns a company and someone else offers to buy their portfolio or company it is not hostile - it is a straightforward purchase. Nothing to fend off- just a "yes, that'll do nicely" or no. Institutions are likely to be interested in buying up operating portfolios rather than lots of individual properties. They might make an offer. I can't see how they could make a hostile one.

"Working all hours." What, you mean just like normal people?

How many hours a day do these "normal people" work?[/quote]

 

[leanderman]

Lexadon is one guy who has done property pretty much exclusively in Clapham and Brixton since the 80s.

I imagine he is a target to be bought out by a financial organisation.

I think it's Prudential or suchlike, that, among others, is targeting buy to let.

In the past they would have invested in commercial property only.

 

[Rushy]

I think it's Prudential or suchlike, that, among others, is targeting buy to let.

In the past they would have invested in commercial property only.

Yes. I heard that. Property returns about 5-6% in London without taking into account the capital growth so I guess it is good for their pension plans in the current climate. Big institutions could affect availability and inflate prices because they will just suck up properties and hold them for ages.