Spacious two bedroom lower ground floor flat,
located on South Norwood High Street, just 2 minutes away from Norwood Junction
train station with excellent links to central London. The flat consists of a spacious
lounge, two good sized bedrooms, fitted kitchen, bathroom and a private
Bedroom Lower Ground Floor Flat
Lounge: 21'5" x 12'7" (6.53m x 3.84m)
Kitchen: 12'7" x 7'6" (3.84m x 2.29m)
Bedroom One: 12'7" x 9'5" (3.84m x 2.87m)
Bedroom Two: 16'0" x 10'11" (4.88m x 3.33m)
Bathroom: 8'10" x 6'10" (2.69m x 2.08m)
The property will be purchased with the current tenants, let
on an AST since 6/12/2017 for £1100 pcm. Therefore investors shall start
receiving rental income immediately after legal formalities are completed.
The current lease is approx. 67 years remaining, and we will apply for an
additional 90-year extension, under the 1993 Leasehold Reform Act.
This will potentially add value* and increase the saleability of the property on exit.
There is also a possibility of easily creating an additional bedroom (to make it into a 3 bedroom flat) as well as upgrading the property before sale in
the future. The projected sale price is not based on this.
The property was previously sold for £170,000 at auction on 14/7/2017.
Why South Norwood?
Explaining why the area has become something of a property
hot spot over the past few years, a spokesman for Townends estate agents said:
"South Norwood is a popular location for families, first-time buyers and
commuters, which means there is a fantastic mix of individuals who make up the
vibrant local community.
"It's still one of the best value-for-money locations
in the South East of England, and it's attractive to buyers as there are many
excellent transport options in the area."
Also, the property is only a 10-minute drive to the proposed
£1.4 bn Westfield Centre in Croydon, which will massively transform Croydon
town centre. We are also expecting local property prices to rise significantly.
Purchase price £176000
Acquisition costs (*) £29802
Contingency fund £1500
PTC listing fee (5%) £10298
Total fundraise £217600
(*) Acquisition Costs
Stamp duty £6300
Legal Fees £
Survey/Valuation Fees £
Accountancy Fees £
Photography/floor plans £
Lease extension £
Professional fees (lease extension) £
SPV set-up £
Total acquisition costs £29802
Projected Sale Proceeds
Sale price £235,000
Rental income 3 years £39,600
Cost of purchase £217600
Agent’s Management fee £4,320
Agent’s commission (sale) £4,230
Accountancy fee (years 2 & 3) £1,400
Total Costs £227550
Company tax £8940
Projected net gain on sale £38111
PTC exit fee £5717
Net profit to shareholders £32394
Projected net ROI (3 years) 14.9
Projected NET return on investment (ROI) – 14.9%
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