Parking spaces as a BTL Investment

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    Parking spaces as a BTL Investment

    Hi,

    This may be a bit of a break from the normal buy to let property investment. However I am seriously considering buying an underground parking space in Liverpool city centre (my place of work) as a high yielding investment.

    I have the option to purchase a parking space in a secure, underground parking lot underneath a new development of city centre apartments. After doing my research I have noticed that parking spaces rent for between £100-£125 per month and can be purchased for £10,000. This is a yield of 12% to 15% (before small service charges are deducted) which just seems too good to turn down.
    I was wondering if anyone has gone down the route of this investment before or if anyone on here actually owns a parking space as an investment?

    I understand it will be almost impossible to leverage against the parking space, therefore my cash will be locked away essentially. But other than this I’m struggling to see the down sides.

    with the level of developments in Liverpool city centre and increased population I think I should always find an occupier for the space.

    Does anyone have any experience of this?

    Thanks

    #2
    One word of caution , many new developments of flats have a restriction within the lease that preclude the sale of a car parking space to anyone other than a bonafide owner of another unit within the complex and such consents have to be registered via the Managing Agents. Another factor to check is whether the car parking space is included in the Title Deeds of the flat which the owner wishes to sell off, should this be the case I would suggest you ask the vendor to provide you with consent from the mortgagee for it to be removed and for your solicitor to check that the sale of the space has been removed from the title.

    Comment


      #3
      How are you going to stop all and sundry from parking there? Is there a warden controlling it?

      Comment


        #4
        If it is anything like the development I have involvement with , the straight answer is Yes , someone makes regular checks and if someone is deemed to have parked “illegally” a fine of £100 is charged with a discount of £25 if paid within 7 days. I know this to my own cost parking in the allotted space which still was registered in my tenants name.

        Comment


          #5
          If it is included in the demise, there will almost certainly be a clause forbidding sub-letting or otherwise parting with part of the property, not that that seems to stop the landlords in my flats (with garages).

          It is illegal to charge parking fines. What might appear to be fines are actually compensation (and have to obey the rules about being proportionate).

          Comment


            #6
            Usually the parking space is covered under the lease term for the flat.

            The ownership of parking space may be restricted to leaseholders in the block of flats by local council

            Comment


              #7
              I was wonder if there is any requirement to pay annual ground rent , service charge and council tax on the parking space ( band A ? ) ?.

              Is it sold on a 125 years lease ?and does the ground rent double every 10 year ?

              Comment

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