28 Norfolk Road, Thornton Heath, Croydon, CR7 8ND

Description

A Freehold Ground Rent Investment Comprising Two Flats, Producing £60 Per Annum and Rising to £180 Per Annum, with Reversionary Value. The property comprises a ground rent investment secured upon a semi detached building arranged to provide two flats over ground and first floors.

Accommodation

Semi detached building arranged to provide two flats over ground and first floors.

Location

Situated on a residential road close to local shops and amenities. The open spaces of Grangewood Park are within easy reach. Transport links are provided by Thornton Heath rail station.

Tenure / Property Information

Investment Analysis

This is a specialist freehold ground-rent and reversion investment rather than a standard residential rental or refurbishment opportunity. The supplied income is £60 per annum, rising to £180 per annum, but no capitalisation rate, completed comparables, lease terms, lease expiry dates or evidence of the reversionary value is provided. The two flats are held on short leases and Section 5(b) notices have been served, so the legal pack and lease documentation are central to valuation. At the £50,000 upper guide, the current ground-rent income equates to approximately 0.12% before costs; at £40,000 it equates to 0.15%.

Investment Snapshot

Strategy Recommendation

Treat this only as a specialist ground-rent/reversion acquisition. Do not rely on the flats' potential residential value without reviewing the legal pack, lease terms, Section 5(b) notices and independent valuation. The current income alone does not justify the upper guide.

Works Required

No physical works are identified in the supplied evidence. The investment relates to ground rent and reversionary rights over two flats; no refurbishment allowance has been assumed.

Rental & Market Context

Potential BRRR Position

BRRR is not supported by the evidence. There is no refurbishment plan, residential rent evidence, GDV, mortgage valuation or refinance basis. The short leases, served Section 5(b) notices and unknown lease terms require specialist legal and valuation review before considering any value-creation or refinance strategy.

Buy-to-Let Analysis

A conventional BTL analysis cannot be established because no residential rental evidence is supplied. The supported income is ground rent of £60 per annum, rising to £180 per annum, not passing rent from the flats. Using the £50,000 upper guide and £1,800 admin charge, the current ground-rent return is approximately 0.12% before other costs.

Flip Analysis

A flip analysis cannot be reliably calculated because no completed sales, GDV evidence, lease terms, reversion valuation or selling-cost allowance is supplied. The short leases and notices may materially affect marketability and value.

Investor Risks & Due Diligence

• Short leases may materially restrict the value and marketability of the two flats.

• Section 5(b) notices have been served; the legal and financial implications require specialist review.

• The supplied ground-rent income is only £60 per annum currently, rising to £180 per annum, producing a very low current return against the guide.

• No capitalisation rate, comparable evidence or independent valuation is supplied for the freehold ground-rent and reversionary interest.

• Disbursements and other charges under the legal pack or Special Conditions of Sale may be payable in addition to the stated purchase price and £1,800 admin charge.

• The residential rental potential of the flats is unsupported by the supplied evidence.

Recommendation

Treat this only as a specialist ground-rent/reversion acquisition. Do not rely on the flats' potential residential value without reviewing the legal pack, lease terms, Section 5(b) notices and independent valuation. The current income alone does not justify the upper guide.

Strategy Rating

Analysis Confidence

The guide, tenure, current and rising ground rent, short-lease status and notices are supplied, but there are no lease dates, legal-pack costs, comparables, capitalisation evidence, GDV, residential rents or condition details.