28A The Market Place, Falloden Way, Hampstead Garden Suburb, London, NW11 6JJ

Description

A Well Located First Floor Two Bedroom Flat Held on a Short Lease. A Lease Extension has been Formally Agreed at £263,000. The Property is also Sub Let on Lease That Has Three Years Unexpired with no Right to Extend.

Accommodation

First Floor: Reception Room, Kitchen, Two Bedrooms, Bathroom. The property benefits from a private balcony.

Location

The property is situated on a mixed use road in the highly sought after area of Hampstead Garden Suburb close to local shops and amenities. The open spaces of Lyttelton Playing Field are within easy reach. Transport links are provided by East Finchley underground station (Northern line).

Tenure / Property Information

Investment Analysis

The strongest supplied evidence is £450,000 for 16B The Market Place in November 2024 and £450,000 for 22A in July 2023. Other sales range from £225,000 to £495,000, but bedroom count, floor area, condition and lease terms are not supplied. A £450,000 base GDV is therefore used only as an indicative extended-lease scenario. The agreed £263,000 lease-extension premium is a major known cost and must be verified in the legal pack, including payment and completion mechanics. At the £50,000 midpoint of the guide, the known purchase, premium and administration cost total £314,800 before works, legal costs, disbursements, tax and other special-condition charges.

Investment Snapshot

Strategy Recommendation

Avoid bidding unless the legal pack confirms the lease-extension agreement is fully transferable and executable, the sublease is acceptable, and a detailed cost plan demonstrates margin after all fees and risks. This is not suitable for yield-led BTL analysis on the supplied evidence.

Works Required

No refurbishment works are evidenced. Obtain inspection and legal-pack information before budgeting any works; the lease-extension premium is a legal/acquisition cost rather than a refurbishment allowance.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the indicative £450,000 extended-lease GDV, 75% refinancing would be approximately £337,500. Using a £50,000 guide midpoint, the known acquisition, £263,000 premium and £1,800 administration charge total £314,800 before unknown works and other costs, leaving only £22,700 before those deductions. Refinance feasibility depends on the lease extension completing and lender acceptance of the resulting title and tenancy.

Buy-to-Let Analysis

BTL yield cannot be established because no rent is supplied and no sufficiently specific rental comparable was identified. The property is sublet for three years with no right to extend, so the incoming buyer must review the sublease, rent, covenants and vacant-possession implications. The very short existing headlease also makes the agreed extension central to the investment case.

Flip Analysis

An indicative £450,000 extended-lease GDV less the known £314,800 acquisition, premium and administration costs leaves £135,200 before refurbishment, legal, tax, finance, selling and other auction costs. No supported selling allowance or works budget is available, so a reliable flip surplus cannot be calculated. The £225,000 to £495,000 comparable range creates substantial downside risk.

Investor Risks & Due Diligence

• Approximately three years remain on the existing headlease unless the agreed extension completes.

• The £263,000 lease-extension premium is a substantial fixed acquisition cost and its transfer and completion mechanics require legal verification.

• No rental evidence or passing rent is supplied, preventing yield analysis.

• The property is sublet for three years with no right to extend; the sublease terms and possession position require review.

• Comparable sale prices vary materially and lack supplied information on size, condition, bedroom count and lease length.

• Unknown legal, tax, finance, disbursement, selling and potential refurbishment costs could eliminate the apparent margin.

• Special Conditions may impose additional charges, including searches, seller costs, legal fees or transfer fees.

Recommendation

Avoid bidding unless the legal pack confirms the lease-extension agreement is fully transferable and executable, the sublease is acceptable, and a detailed cost plan demonstrates margin after all fees and risks. This is not suitable for yield-led BTL analysis on the supplied evidence.

Strategy Rating

Analysis Confidence

There are several relevant completed sales and a formally stated lease-extension premium, but floor areas, comparable lease terms, condition, rent, tenancy terms, legal disbursements, taxes and other acquisition costs are not supplied.