77 Benson Avenue, East Ham, London E6 3EE

Description

A vacant three-bedroom mid-terrace house comprising a reception room and kitchen on the ground floor, with three bedrooms and a bathroom above. The property is freehold, has EPC rating C and is offered with a six-week completion option. Earlier marketing for the same address described renovation and development potential, supporting a refurbishment-led appraisal.

Location

Benson Avenue is in East Ham, within reach of Upton Park and West Ham transport links, local schools, shops and everyday amenities. The area has an established family and rental market and provides access towards Stratford, Canary Wharf and central London.

Investment Analysis

Investment Snapshot

Property & Refurbishment

Given prior marketing references to renovation, I would initially budget £30,000–£50,000 for kitchen, bathroom, decoration, flooring, heating/electrical works, joinery, rear garden and contingency. The figure should be revised after a survey and contractor schedule; development works or an extension are not included unless separately consented and costed.

Rental Analysis

Direct same-street achieved rents were not independently verified in this pass. For sensitivity testing I would use an HB market estimate of £2,100–£2,400 pcm for a refurbished three-bedroom East Ham house. That gives £25,200–£28,800 pa and 9.0%–10.3% gross on guide. At the £320,000 midpoint project cost, £2,250 pcm produces approximately 8.4% gross. Current comparable lettings should be checked before bidding.

GDV / Resale Analysis

Same-postcode evidence includes 1 Benson Avenue at £438,000 in February 2023. Earlier marketing of number 77 itself was at a materially higher guide, but that was not a verified sale price and should not be treated as one. I would use an indicative £425,000–£475,000 completed-value range pending more recent like-for-like sales.

Properties Sold Within Approx. 5 Miles

The February 2023 transaction is the strongest verified same-street evidence currently available. The 2016 sale is too old to carry meaningful weight. More recent local three-bedroom terrace sales should be checked before relying on the upper GDV.

Potential BRRR Position

Using the £450,000 midpoint GDV, an illustrative 75% refinance is £337,500 against midpoint guide-plus-works of £320,000. That indicates some potential capital recycling, but the margin is relatively modest once SDLT, finance and other acquisition costs are included.

Flip Analysis

The refurbishment resale case is reasonable but less exceptional than some other lots. A conservative £425,000 exit should be stress-tested against £310,000–£330,000 guide-plus-works and all transaction/holding costs. The deal becomes less attractive if bidding rises materially above guide.

Investor Risks & Due Diligence

• Verify the full renovation scope with a building survey.




• Do not treat earlier marketing guide prices as completed-sale evidence.




• Research current achieved three-bedroom house rents in East Ham.




• Check whether any development/extension opportunity requires planning consent and is economically justified.

Recommendation

Preferred strategy: BRRR / Buy-to-Let, with resale as an alternative. The guide is below known local sale evidence, but the investment depends on controlling refurbishment and verifying a completed value around £425,000 or above.

Strategy Rating

BRRR: ★★★★☆

Buy-to-Let: ★★★★☆

Flip: ★★★☆☆

Development: ★★☆☆☆