16C Bury Street, Edmonton, London, N9 7LB

Description

A First Floor Two Bedroom Flat Subject to a Periodic Tenancy Producing £19,200 Per Annum. The property comprises a first floor two bedroom flat situated within a semi detached house arranged over ground and first floors. By Order of the LPA Receivers.

Accommodation

First Floor: Reception Room with Open-Plan Kitchen; Two Bedrooms; Bathroom.

Location

The property is situated on a residential road close to local shops and amenities. The open spaces of Jubilee Park are within easy reach. Transport links are provided by Ponders rail station.

Tenure / Property Information

Investment Analysis

Evidence includes one nearby leasehold flat sale at £195,000 and several apparently inconsistent or duplicated sales for Lilium Court ranging from £220,000 to £285,000. A base GDV of £220,000 is used as an estimate, with a £195,000 low case and £240,000 high case. The approximately 50-year unexpired lease and periodic tenancy may constrain value and mortgageability; no formal valuation, service charge, ground rent or property-size evidence is supplied.

Investment Snapshot

Strategy Recommendation

Potential income-led hold only if the periodic tenancy, rent, lease terms and legal pack are verified and the lease can be financed or extended on acceptable terms. Do not rely on the asking rent or refinance surplus when setting a bid.

Works Required

No refurbishment defects or required works are evidenced. Allowance cannot be estimated without inspection and legal-pack information. Verify condition, compliance, lease terms, service charge and tenant position before bidding.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £150,000 guide, the known purchase cost including the £1,800 administration charge is £151,800 before any disbursements, finance, tax or works. A 75% refinance against the £220,000 base GDV is estimated at £165,000, implying £13,200 more than the known acquisition cost before works and other costs. This is not a reliable cash-out conclusion because lease length, lender criteria, valuation, service charges, ground rent and refurbishment costs are unconfirmed.

Buy-to-Let Analysis

The property is stated to produce £19,200 per annum, equivalent to £1,600 pcm, giving 12.80% gross yield on the £150,000 guide and approximately 12.65% on the guide plus the known £1,800 administration charge. The £2,200 pcm figure is an advertised asking rent, not achieved rent, so it should not replace the stated passing rent without verification. Service charges, ground rent, voids, management, finance, tax and disbursements are unknown. The short approximately 50-year lease may materially affect mortgageability and exit value.

Flip Analysis

Using the £220,000 base GDV against the £150,000 guide and £1,800 known administration charge indicates £68,200 gross headroom before works, selling costs, finance, tax, disbursements and lease-related value adjustments. No supported refurbishment or selling-cost allowance is available, so a net flip surplus cannot be established. The approximately 50-year lease and inconsistent comparable evidence increase resale uncertainty.

Investor Risks & Due Diligence

• Approximately 50 years remain on the lease, creating potential mortgageability, resale and lease-extension risk.

• The property is subject to a periodic tenancy, so vacant possession, tenancy terms and rent continuity require verification.

• The £2,200 pcm rental figure is advertised asking rent rather than achieved rent.

• Buyer premium, legal-pack disbursements, service charge, ground rent, finance, tax and other acquisition costs are not supplied.

• No condition survey or refurbishment cost evidence is provided.

• Comparable sales include duplicated or materially inconsistent prices, reducing confidence in the GDV estimate.

• The property is being sold by order of LPA Receivers, so legal-pack review is particularly important.

Recommendation

Potential income-led hold only if the periodic tenancy, rent, lease terms and legal pack are verified and the lease can be financed or extended on acceptable terms. Do not rely on the asking rent or refinance surplus when setting a bid.

Strategy Rating

Analysis Confidence

The guide, current rent, lease term, tenure, one close comparable and several local sales are supplied, but condition, floor area, service charge, ground rent, disbursements, buyer premium, legal terms and achieved market rent are unavailable; the comparable set is also inconsistent.