How to Find BMV Properties in the UK – Tips from Martin Roberts

When looking for an investment property in the UK, you should ideally find properties that are below market value, or BMV properties. Getting a bargain on a property can increase your profits when it’s time to sell, offer higher rental yields, and provide increased equity over time. Join me, Martin Roberts, for exclusive tips on sourcing and renovating BMV properties to avoid expensive mistakes and unlock the true potential of below-market-value properties. With years of experience presenting Homes Under the Hammer and a deep understanding of the UK property market, I’ll guide you through proven strategies to spot genuine opportunities, assess renovation potential, and maximise your returns. With years of experience and a deep understanding of the UK property market, I’ll guide you through proven strategies to spot genuine opportunities, assess renovation potential, and maximise your returns.

Table of Contents

What are BMV Properties?
Why Are Some Properties Below Market Value?
How to Find BMV Properties
Key Considerations for BMV Properties

What are BMV Properties?

A below-market-value or BMV property is one that is on sale or purchased for less than the current market value of similar properties in the same area. Many BMV properties are sold by people looking to sell the property quickly and are happy to accept a BMV offer. BMV properties often attract other would-be property investors, so they tend to get sold quite quickly, so you need to be ready to move quickly on a sale to get a bargain property.

Why Are Some Properties Below Market Value?

Some properties are below market value due to a motivated seller. Perhaps they are facing financial problems and need to free up some money quickly, so they are keen to sell their property as fast as possible. This is known as a distressed sale. BMV properties could also have been repossessed by a bank after the original owner defaulted on their mortgage, probate sales following inheritance, or the owner needing to move house quickly.

Some BMV properties are also in need of renovation that the current owner can’t or doesn’t want to undertake themselves. For this kind of property, it’s essential to get a detailed property survey done to assess the extent of the renovations required and how much they would cost. This will show you if the property is a true bargain or if it would be too expensive to renovate, even at a lower price.

How to Find BMV Properties

There are several things you can do to find the best BMV properties in your area. They can be highly profitable, so remember that other potential buyers will be looking at the same properties as you and plan accordingly. Here are my tips for finding BMV properties.

Visit property auctions

Property auctions can be a great place to buy BMV properties. Many auction properties are repossessed houses, inherited properties, or distressed sales. Before buying a property at auction, you should always review the auction catalogue as early as possible, have a solicitor or other legal professional review the auction legal packs, research the local area, do your due diligence and investigate the property thoroughly before bidding, looking at the HM Land Registry and EPC certificates. You should never buy a property at auction that you haven’t seen or had the chance to survey.

FAQ: What is a property auction legal pack?

When a property is up for auction, the seller’s solicitor will prepare a legal pack including all property documents, including a copy of the official register of title, conditions of sale, land registry information, any relevant tenancy agreements or lease agreements, planning permission documentation, and all key details of the property. This can help you make a decision on whether or not to bid on a property.

Look for off-plan properties

Off-plan properties are sold before they are completed for a lower price point (often 10-15% below the regular sale price) than completed properties. Developers offer these to property investors to secure some early sales, making them an ideal way of obtaining new build BMV properties.

Network with other property professionals

You can sometimes find the best property deals outside of regular estate listings. Some off-market deals are often advertised locally, shared within property investment groups, or through direct contact with property professionals. Make time to get to know property pros in your area or in your chosen area for property investment, sign up for mailing lists and online groups, and build relationships with local estate agents.

Look for properties in up-and-coming areas

Cities that are undergoing regeneration are often great places to find good deals on properties. Looking at local employment rates, population growth, planned regeneration projects and infrastructure developments, rental demand and property price trends in an area can give you an idea of where to look for BMV properties. Cities such as Manchester and Liverpool have undergone huge regeneration projects over the last couple of decades, turning former industrial zones or economically deprived areas into hot new locations for property investment.

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Key Considerations for BMV Properties

Research the local area

If you see a crop of BMV properties listed in the same area, this could be a clue as to why they are below market value. External factors within the area could be driving property prices down, and it’s essential to find out what is occurring nearby. For example, if a large employer in the area has recently shut down or relocated, this could lead to job losses, reduced demand for housing, and ultimately falling property prices. Always investigate local news, planning applications, and economic developments to get a clearer picture before making an investment.

Investigate the condition of the property

Some BMV properties are in poor condition and need extensive renovations before they can be rented out or sold for a profit. This might not be a deal-breaker, depending on your investment goals, but you should always find out exactly what renovations are required and how much they might cost before investing. Consider the risk of expensive repair jobs such as rewiring the entire property, removing asbestos or lead paint, fixing structural issues, especially foundation cracks, and more. Getting at least a Level 2 property survey done can ensure you know what the property requires and how much you would need to spend.

Check for potential legal or financial issues

There could be other problems with a BMV property other than renovation requirements. Any disputes over the legal ownership of the property, zoning issues, local planning rules, liens or other legal problems can seriously impact your investment, so doing research into these things before investing is essential.

Investing in BMV properties is a great way to start your journey as a property investor and grow your portfolio. BMV properties can offer huge returns that help you to grow your profits and become financially independent. Following the tips above will help you find the best BMV properties and maximise your returns. Join me, Martin Roberts, and other AFL property experts at our Buy To Let Success property training event for even more insider tips and specialist knowledge that will set you up for success – click the link above to get your FREE ticket today.