112, Oakfield Road, London, SE20 8RQ

Description

The property comprises the freehold of this four-floor building arranged as four self-contained flats. Each flat is sold on a long lease with one of the flats offering valuable reversion in circa 70 years or lease extension premium potential.

Accommodation

Flat 1 Lease terms: Sold on a lease for a term of 189 years from 29/09/1996 Annual Ground Rent: £nil Flat 2 Lease terms: Sold on a lease for a term of 99 years from 29/09/1996. Valuable Reversion in circa 70 years. Annual Ground Rent: £200.00 Flat 3 Lease terms: Sold on a lease for a term of 125 years from 01/11/2012 Annual Ground Rent: £200.00 Flat 4 Lease terms: Sold on a lease for a term of 189 years from 31/03/2004 Annual Ground Rent: £nil

Tenure / Property Information

Investment Analysis

This is a freehold ground-rent investment, not a vacant or income-producing residential purchase. The property comprises four flats held on long leases, producing total contracted ground rent of £400 per annum. Flat 2 is stated to offer a valuable reversion in circa 70 years. The only directly matching comparable is the same address, sold for £25,005 in July 2018, but it is historic and insufficient to establish a current market value. The £1 guide is not a reliable indication of the eventual purchase price. The £1,800 inclusive-of-VAT contract documentation fee is known; additional seller fees may apply.

Investment Snapshot

Strategy Recommendation

Treat as a specialist freehold ground-rent and reversion acquisition only. Do not bid on the £1 guide alone; first review the legal pack and confirm the four lease terms, enforceability and collection of the £400 ground rent, reversion details and all completion charges.

Works Required

No physical refurbishment works are identified in the supplied description. The relevant due diligence is legal and title-based: verify the freehold title, all four leases, ground-rent collection position, lease covenants, reversionary rights and any seller-charged completion fees.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

BRRR is not supported by the evidence. There is no refurbishment plan, residential rent evidence, current GDV or refinance valuation. The investment case rests on £400 annual ground rent and the stated long-dated reversion or lease-extension potential, particularly for Flat 2. Refinancing at 75% of GDV cannot be calculated.

Buy-to-Let Analysis

This is not a conventional BTL acquisition because the purchaser acquires the freehold and ground-rent interests rather than the right to occupy or let the flats. The supported recurring income is £400 per annum in ground rent; no assured residential rental income is provided. A meaningful residential BTL yield cannot therefore be established. The 2-bed £1,995 pcm BTR listing is not sufficiently comparable to these four leasehold flats and has not been used.

Flip Analysis

A flip analysis cannot be reliably completed because no current GDV, resale costs or refurbishment costs are supplied. The £25,005 same-address sale from 2018 is historic and cannot by itself support a current resale value or surplus.

Investor Risks & Due Diligence

• The £1 guide may bear little relationship to the eventual auction purchase price.

• The £1,800 contract documentation fee applies, and additional seller fees may be payable.

• The £400 annual ground rent is modest and two flats have nil ground rent.

• Flat 2's stated reversion is circa 70 years away and its value depends on the precise lease and legal position.

• No current market valuation or reliable comparable evidence is supplied.

• The flats' occupancy, lease compliance, ground-rent payment status and other title matters are not provided.

• The advertised £1,995 pcm BTR rent is not a sufficiently comparable basis for valuing these leasehold interests.

Recommendation

Treat as a specialist freehold ground-rent and reversion acquisition only. Do not bid on the £1 guide alone; first review the legal pack and confirm the four lease terms, enforceability and collection of the £400 ground rent, reversion details and all completion charges.

Strategy Rating

Analysis Confidence

The lease structure, ground rents, tenure, guide and one historic same-address sale are supplied, but there is no current valuation, legal-pack detail, occupancy information, EPC, residential rent evidence, buyer premium or confirmed seller costs.