38 Seven Sisters Road, Holloway, London, N7 6AA

Description

A Mid Terrace Building Arranged to Provide a Ground Floor Retail Unit Let to a Subway Franchise Producing £30,000 Per Annum and Three Flats on the Upper Floors (All Sold off on Long Leases)

Accommodation

Ground Floor: Retail Unit, G.I.A Approximately 69 sq m. First, Second and Third Floors: Three Flats (Not Inspected).

Location

The property is situated on a mixed use road close to local shops and amenities. Nearby multiples include Paddy Power, Lyca and KFC. The open spaces of Whittington Park are within easy reach. Transport links are provided by Arsenal underground station (Piccadilly line) and Harringay rail station.

Tenure / Property Information

Investment Analysis

The latest directly matching completed sale is £552,000 for 38 Seven Sisters Road in January 2023, with earlier sales at £500,000 in 2007 and £435,000 in 2020. The £1,075,000 sale is for 52A and is not treated as directly comparable. A base GDV of £552,000 is therefore used, subject to the retail lease expiry in March 2029, the flats being sold off on long leases and the flats not having been inspected.

Investment Snapshot

Strategy Recommendation

Treat as an income-led freehold investment only if the acquisition price supports an acceptable return and the Subway lease position through March 2029 is satisfactory. Do not underwrite residential flat income or refurbishment upside.

Works Required

No refurbishment works are evidenced. Obtain and review the legal pack, inspect the retail unit and common parts, and verify the condition and lease documentation for the three flats before committing to any works allowance.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A 75% refinance against the £552,000 base GDV indicates £414,000 gross borrowing before finance costs and lender adjustments. Cash left in cannot be calculated because the purchase price, works budget and full acquisition costs are unavailable. BRRR is constrained by the absence of evidenced refurbishment upside and by the flats already being sold on long leases.

Buy-to-Let Analysis

The freehold receives £30,000 per annum from the ground-floor Subway retail unit. The three flats produce no stated income because they are sold off on 999-year leases at peppercorn ground rent. At the £552,000 base GDV, the income equates to approximately 5.43% gross, but yield on purchase cost cannot be established because no guide or purchase price is supplied. The retail lease commenced in March 2004 for 25 years and is therefore due to expire in March 2029, subject to the lease terms and any renewals.

Flip Analysis

A flip surplus cannot be calculated reliably. The latest matching sale supports a £552,000 GDV, but no purchase price, refurbishment allowance, selling costs or evidence of value uplift is supplied. The three flats are not available as vacant units for resale because they are held on long leases.

Investor Risks & Due Diligence

• The three flats are sold off on 999-year leases and provide only peppercorn ground rent to the freeholder.

• The retail lease commenced on 22 March 2004 for 25 years and is due to expire in March 2029, subject to the full lease terms and any renewal.

• The three flats were not inspected, so their condition and any obligations affecting the freeholder are unverified.

• No auction guide, buyer premium or detailed completion disbursements are supplied.

• The £30,000 annual income relates only to the ground-floor retail unit; no residential rental income should be assumed.

Recommendation

Treat as an income-led freehold investment only if the acquisition price supports an acceptable return and the Subway lease position through March 2029 is satisfactory. Do not underwrite residential flat income or refurbishment upside.

Strategy Rating

Analysis Confidence

There is a current stated retail rent and several completed sales, including a recent sale of the same property, but no guide price, inspection evidence, EPC, full lease terms, buyer premium, disbursements or refurbishment information is provided.