24 Wellwood Road, Ilford, Essex

Description

Investment opportunity comprising a freehold part reversionary ground rent secured upon three self-contained flats. Total current rent reserved is £25 p.a. The lessees have not elected to take up their rights of pre-emption.

Location

Situated on the east side of Wellwood Road. The shops and amenities of Goodmayes are to the south east. Goodmayes rail station is approximately 0.3 miles to the south east. The A118 (High Road) is to the south. Westwood Recreation Ground is to the west. King George Hospital, Blue House Surgery and Queens Hospital are within reach. The University of East London, Seven Kings School and Farnham Green Primary School are in close proximity. Valence House Museum and Redbridge Town Hall are close by.

Tenure / Property Information

Investment Analysis

This is a freehold ground-rent investment, not ownership of the three flats. The £25 p.a. current rent produces only a 0.25% gross income yield at the £10,000 guide. The supplied sold comparables are whole terraced freehold properties and do not provide relevant evidence for valuing this ground-rent interest. No supported GDV or market value for the reversionary interest can be established. One flat has approximately 48 years remaining on its lease, two have long leases, and the stated reversion is from 2074.

Investment Snapshot

Strategy Recommendation

Only consider as a specialist, long-term ground-rent investment if legal review confirms the lease terms, rent collection position, reversion rights and all auction-related charges. The £25 p.a. income is weak relative to the £10,000 guide.

Works Required

No refurbishment works are identified or evidenced. The investment is a ground-rent interest secured upon three self-contained flats.

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 opportunity, supported GDV, or refinance valuation for the ground-rent interest. The 48-year lease on one flat and reversion from 2074 require legal and valuation review before considering any bid.

Buy-to-Let Analysis

This is not a conventional BTL purchase because the buyer acquires a freehold ground-rent interest rather than the flats. The supported income is only £25 p.a.; residential rental evidence of £1,300 pcm for a one-bedroom flat is not applicable to this interest. At the £10,000 guide, the ground-rent income yield is 0.25%.

Flip Analysis

A flip surplus cannot be calculated because no supported market value or sale-cost allowance is provided for the ground-rent interest. The supplied terraced-house comparables are not suitable valuation evidence.

Investor Risks & Due Diligence

• Very low current income of £25 p.a. relative to the £10,000 guide.

• One flat has approximately 48 years remaining on its lease.

• The stated reversion is from 2074, so significant value depends on long-dated and legally confirmed reversionary rights.

• Buyer premium, administration charges and other potential seller or third-party fees are unspecified.

• Legal confirmation is required regarding the leases, ground-rent collection, enforcement rights and the stated non-election of pre-emption rights.

Recommendation

Only consider as a specialist, long-term ground-rent investment if legal review confirms the lease terms, rent collection position, reversion rights and all auction-related charges. The £25 p.a. income is weak relative to the £10,000 guide.

Strategy Rating

Analysis Confidence

The current rent, tenure, lease summaries, guide price and reversion date are supplied, but there is no specialist ground-rent valuation, detailed lease documentation, buyer/admin fee schedule, or relevant comparable evidence.