The Dreadnought Update
For those unfamiliar, the Dreadnought is the former pub located along the Thames, situated between East Reading and Wokingham Waterside Centre.
Recently, this property, owned by first-year students from the University of Reading, was auctioned and sold for an astonishing £424K—more than double the initial guide price!
However, it appears that the winning bidder has not provided the deposit, leading to the property being re-auctioned.
Steve Berry shared his thoughts on Facebook after considering a bid:
“It’s going back up for auction at the end of the month. I suspected it would be relisted once the buyer faced all the necessary hurdles.”
“The agent has confirmed that the buyer’s inability to provide a deposit is the reason for the re-listing.”
“This situation typically arises when someone does their due diligence after the auction.”
“After all, who bids £424K without proper funding?”
“When you factor in the additional second property stamp duty of around £30K, plus legal and auction house fees, you’re looking at a total closer to £460K.”
“With a sitting tenant on the first floor, an EPC rating that needs improvement from G to D (soon to be C), another tenant in the canoe club until 2027, no parking, and limited access, I was surprised to see it go for £424K. Taking all these restrictions into account, I would have valued it at around £200K.”
“It’ll be interesting to see how buyers assess its value this time around.”
“On the bright side, those who missed out last time will have another chance!”
It sounds like quite a rollercoaster for the Dreadnought! It’s interesting to see how the auction process works and the unexpected hurdles that can come up. The buyer’s failure to secure the deposit really highlights the importance of due diligence before committing to such a significant investment. With all the restrictions and the costs involved, I can understand why you valued it around £200k.
It’s great that potential bidders now have another chance to reconsider their bids. Hopefully, this time around, all interested parties will be more prepared for the challenges involved. It’ll be interesting to see how the market responds now that the property is back up for auction. Thanks for sharing the updates!