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

Description

A Well Located Second and Third Floor Four Bedroom Split Level Flat Held on a Short Lease. A Lease Extension has been Formally Agreed at £376,000. The Property is also Sub Let on Lease That Has Three Years Unexpired with no Right to Extend.

Accommodation

Second Floor: Reception Room, Kitchen, Two Bedrooms, Bathroom. Third Floor: 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 evidence is the same-market-place sale at £450,000 in November 2024, with another same-location sale at £450,000 in July 2023 and an older £495,000 sale. The £225,000 sale indicates a potentially wide value range, but bedroom count, size, condition and lease terms are not supplied, so it may not be directly comparable. A base GDV of £450,000 is used, subject to confirmation that the agreed lease extension can be transferred and completed on the stated terms. The £376,000 lease extension premium is a major project cost. Using the £60,000 midpoint of the auction guide, known acquisition cost is £437,800 before any refurbishment, finance, tax, selling costs or additional disbursements.

Investment Snapshot

Strategy Recommendation

Proceed only if the legal pack confirms transfer and completion of the £376,000 lease extension, the sublease position and all additional costs. On the supplied evidence, the narrow margin and unresolved costs do not support an aggressive bid.

Works Required

No specific refurbishment defects or works are evidenced. Confirm condition, statutory compliance and any repair obligations. The key proposed project item is completion or transfer of the formally agreed lease extension, subject to legal-pack verification.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £60,000 guide midpoint, adding the agreed £376,000 lease extension premium and £1,800 administration charge gives known costs of £437,800, excluding unknown works and disbursements. A 75% refinance against the £450,000 base GDV would be approximately £337,500, leaving indicative known-cost cash in of £100,300 before finance, tax and unquantified costs. The strategy depends critically on the lease-extension agreement being assignable and the refinance lender accepting the resulting lease and tenancy position.

Buy-to-Let Analysis

The supplied £6,296 pcm figure is an advertised asking rent, not achieved or confirmed passing rent. At the £60,000 guide midpoint, the headline gross yield is 125.92%, but this is misleading because the £376,000 lease extension premium is required. Against the known-cost total of £437,800, the indicative gross yield is 17.26%, before works, finance, tax, management, voids and other costs. The existing sublease has three years remaining and no right to extend, so future rent and possession require legal verification.

Flip Analysis

The £450,000 base GDV broadly exceeds the £437,800 known-cost acquisition figure by £12,200 before refurbishment, selling costs, finance, tax and additional disbursements. The apparent margin is therefore too thin to establish a viable flip. The broad comparable range of £225,000 to £495,000 also creates material valuation uncertainty.

Investor Risks & Due Diligence

• Approximately three years remain on the existing lease unless the agreed extension is completed.

• The £376,000 lease-extension premium and its transferability to the buyer must be verified in the legal pack.

• The property is sublet for three years with no right to extend; possession, rent and tenancy terms require legal review.

• Additional disbursements, seller costs, legal fees, search fees and transfer fees may be payable but are not quantified.

• The £6,296 pcm rent is an advertised asking rent rather than confirmed passing or achieved rent.

• No floor area, condition assessment, service charge, repair liability or refurbishment budget is supplied.

• Comparable sales have materially different prices and no size, bedroom, condition or lease-term details are provided.

• The supplied known-cost margin against the base GDV is only £12,200 before unquantified project and disposal costs.

Recommendation

Proceed only if the legal pack confirms transfer and completion of the £376,000 lease extension, the sublease position and all additional costs. On the supplied evidence, the narrow margin and unresolved costs do not support an aggressive bid.

Strategy Rating

Analysis Confidence

There are several same-location completed sales and a formally agreed lease-extension premium, but property size, condition, lease-extension documentation, passing rent, service charges, disbursements, tax and finance costs are not supplied. The rental evidence is an asking rent only.