205a Watford Road, Harrow, Middlesex HA1 3UA

Description

HMO - 5 Bedsits Gross - Yield 11.2% 6 Week Completion Comprising an HMO on the entire first and second floors of this mid terraced building accessed from its own ground floor front entrance and currently divided into 5 Bedsits (4 with their own Shower/WC) and each benefitting from uPVC double glazing and gas central heating. In addition, the property includes a communal Kitchen on the first floor. Tenure: Leasehold for a term of 999 years from 21st March 2017 at a peppercorn ground rent.

Location

Located on the west side of Watford Road, close to the junction with Sudbury Court Drive and the John Lyon roundabout in this well established parade. North Wembley Station (Bakerloo and Lioness Lines) and Sudbury & Harrow Road Station (Chiltern Railways) are both under 1 mile away. Northwick Park and Elmwood Park are within walking distance and Harrow town centre, with its multiple shopping facilities, is approx. 1½ miles to the north.

Auctioneer Source Facts

Investment Analysis

Investment Snapshot

Strategy Recommendation

Initial strategy: HMO / Income. Verify the legal pack, tenancy schedule, title, condition, finance and local market evidence before fixing a maximum bid.

Works Required

Obtain a survey and contractor quotations. Allow for services, compliance, repairs, decoration and any structural, roofing, fit-out, common-parts or development works identified.

Rental & Market Context

Where the auctioneer publishes passing rent, that figure should take priority over HB modelling. Otherwise, HB income/value figures are indicative appraisal ranges and require local verification.

Sold within approximately 5 miles

Check recent HM Land Registry transactions and closely matched commercial or residential comparables for tenure, covenant, size, condition and location.

Potential BRRR Position

Refinance potential depends on lender valuation, lease/title, income covenant, completed condition and stress testing. Commercial and mixed-use assets may require specialist finance.

Flip Analysis

Any resale margin must include SDLT, auction/legal fees, finance, holding costs, professional fees, contingency, selling costs and tax.

Investor Risks & Due Diligence

• Read the complete legal pack and special conditions

• Verify tenure, occupational leases and rent schedule

• Inspect condition and obtain contractor quotations

• Confirm planning/use class and development constraints

• Confirm finance, VAT and insurance position

• Allow for Barnett Ross administration fee and any seller costs in the legal pack

Recommendation

Proceed only where verified total project cost and income support the intended hmo / income strategy with adequate contingency and margin.

Strategy Rating

Commercial Income: ★★★★☆ | Development: ★★★☆☆ | Resale: ★★★☆☆