29 Wellesley Road, Ilford, Essex

Description

Investment freehold ground rent secured upon two self-contained flats. The lessees have not elected to take up their rights of pre-emption under the terms of the Landlord and Tenant Act 1987.

Location

Situated on the north side of Wellesley Road. The shops and amenities of Ilford are to the south. Ilford rail station is approximately 0.3 miles to the south. The A406 (North Circular) is to the west. Valentines Park is to the north. Ilford Medical Centre, King George Hospital and York Surgery are all within reach. The University of East London, The Ursuline Academy Ilford and Apex Primary School are in close proximity. Redbridge Central Library and Museum and Valence House Museum are close by.

Tenure / Property Information

Investment Analysis

This is a freehold ground-rent investment secured upon two self-contained flats. The ground rent is peppercorn per annum, so no rental income is evidenced. The two most recent comparable sales on Wellesley Road (£642,000 and £700,000) are residential houses and are not reliable comparables for this interest. The £40,000 2020 sale is described only as “Other” and lacks sufficient detail. No evidence supports a market value or GDV for the freehold ground-rent interest.

Investment Snapshot

Strategy Recommendation

Only consider as a specialist freehold ground-rent acquisition after reviewing the leases, title and legal obligations. Do not underwrite it using the supplied house comparables or a residential rental strategy.

Works Required

No refurbishment or other works are evidenced. The investment is a legal freehold interest secured upon two self-contained flats.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR strategy cannot be established. There is no supported refurbishment opportunity, rental income, GDV or refinance valuation. The interest is a freehold ground-rent investment rather than an evidenced vacant possession residential acquisition.

Buy-to-Let Analysis

BTL analysis is not applicable to the freehold interest on the evidence supplied. The ground rent is peppercorn and no external rental comparable or auctioneer rent estimate is provided. The flats are subject to long leases, so the freeholder does not have evidenced rental possession or an evidenced letting income stream.

Flip Analysis

A flip analysis cannot be supported. The supplied house sales are not suitable evidence for valuing this freehold ground-rent interest, and no selling allowance, project cost or resale value is provided.

Investor Risks & Due Diligence

• The ground rent is peppercorn, so no current income is evidenced.

• Each flat is subject to a long lease, and the lease terms, expiry dates and freeholder obligations are not supplied.

• The lessees have not elected to exercise pre-emption rights, but the legal position and any future rights still require solicitor review.

• Buyer, administration and other seller or third-party charges are not quantified.

• The supplied comparable sales are houses or insufficiently described interests and may not indicate the value of this freehold ground-rent investment.

Recommendation

Only consider as a specialist freehold ground-rent acquisition after reviewing the leases, title and legal obligations. Do not underwrite it using the supplied house comparables or a residential rental strategy.

Strategy Rating

Analysis Confidence

The tenure structure and peppercorn ground rent are stated, but lease terms, title details, income rights, costs, comparable ground-rent evidence, fees and a relevant valuation are not supplied.