Your capital is at risk and investments are not covered by the Financial Services Compensation Scheme (FSCS).

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Your capital is at risk and investments are not covered by the Financial Services Compensation Scheme (FSCS).

Buy-to-let

South Norwood London SE25

3 Year Buy to Let

£39,800 Raised
£195,600 Total
20 Investors
24.2% Projected Growth
0% Below Market Value
 
Overview

Property Features:
  • Private terrace
  • On street/residents parking
  • Central heating
  • Double glazing
  • 2 Bedroom Lower Ground Floor Flat
  • Lounge
  • Fitted Kitchen
  • Bathroom
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 patio garden.

Measurements (Approx):

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 lease has approx. 67 years remaining.

Prior to the end of the term, there is also a possibility of applying for an extension to the lease and easily creating an additional bedroom (to make it into a 3 bedroom flat) as well as upgrading the property before sale in the future. Please read the Investment Pack for more details. 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."  (source: Croydon Advertiser)


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 Costs  
Purchase price  £176000
Acquisition costs (*)  £8800 
Contingency fund  £1500
PTC listing fee (5%)  £9300 

Total fundraise
  £195600
 

(*) Acquisition Costs
 
Stamp duty £6300
Legal Fees £ 1300
Survey/Valuation Fees £ 300
Accountancy Fees £ 700
Photography/floor plans £ 200  
SPV set-up £ 150 

Total acquisition costs
£8800



Projected Sale Proceeds
 

Sale price £235,000
Rental income 3 years £39,600
Total £274600

Costs
Cost of purchase  £195600
Agent’s Management fee  £4,752
Agent’s commission (sale)  £4,230
Accountancy fee (years 2 & 3)  £1,400
Total Costs  £205982
Company tax  £13037
Projected net gain on sale £55581
PTC exit fee £8337
Net profit to shareholders £47243
Projected net ROI (3 years) 24.2

Projected NET return on investment (ROI) –  24.2%



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