Flat 1, Warwick House, 25 South Norwood Hill, London

Description

Vacant self-contained lower ground floor flat arranged to provide a reception room, kitchen, bedroom and bathroom, with a private rear garden. GIA approximately 44.8 sq m (482 sq ft).

Accommodation

Reception Room, Kitchen, Bedroom, Bathroom

Location

Situated on the south west side of South Norwood Hill. An extensive range of shops and amenities is available within South Norwood. Norwood Junction National Rail and Overground station is approximately 0.4 miles to the south east, with direct transport links to London Bridge, Victoria, Canada Water and various other central London destinations. The A23 is towards the west and easily accessible. South Norwood Country Park is nearby.

Tenure / Property Information

Investment Analysis

Same-building sold evidence comprises £220,000 in August 2023, £230,000 in November 2021 and £257,000 in June 2021. The flat sizes, condition and bedroom counts for those sales are not supplied, so the evidence supports only an indicative GDV range. A base GDV of £230,000 is used. The £261,000 and £400,000 Northdale Court sales are not relied upon as direct evidence because the comparable property details are insufficient.

Investment Snapshot

Strategy Recommendation

Potential buy-to-let subject to confirming condition, lease documentation, resale value and all auction charges. Do not rely on the headline guide yield or pursue a flip without verified works and costings.

Works Required

No specific defects or refurbishment requirements are evidenced. Allow for inspection and verification of the kitchen, bathroom, decoration, services, damp/moisture condition and private rear garden before bidding; no works allowance can be quantified from the supplied evidence.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the base indicative GDV of £230,000, 75% refinance is £172,500. Against the £150,000 guide, this is a £22,500 gross difference before works, acquisition costs, finance, tax and refinancing constraints. The result is therefore highly dependent on the achieved purchase price, valuation and property condition.

Buy-to-Let Analysis

The supplied rental evidence is one advertised asking rent of £1,350 pcm, not an achieved rent or auctioneer estimate. This equates to £16,200 annually and 10.8% gross yield against the £150,000 guide only. Yield on total acquisition cost cannot be established because buyer, administration and other charges are not supplied, and condition/works costs are unknown.

Flip Analysis

The indicative resale GDV range is £220,000 to £257,000 based mainly on supplied Warwick House sales. A reliable flip surplus cannot be calculated because refurbishment costs, acquisition costs, selling costs and finance costs are not supplied. The lower comparable range also leaves limited room for unidentified costs if bidding materially above the guide.

Investor Risks & Due Diligence

• The £1,350 pcm figure is an advertised asking rent rather than achieved rent.

• The supplied sold comparables do not include sufficient size, bedroom or condition details to confirm direct comparability.

• The property is vacant and no condition, damp, service or refurbishment information is provided.

• Buyer premium, administration charges and other seller or third-party fees are unspecified.

• Leasehold service charges, insurance arrangements and remaining lease covenants are not supplied.

• Actual purchase price may exceed the £150,000 guide, reducing the indicated gross yield.

• Mortgage, valuation and refinance availability are not guaranteed.

Recommendation

Potential buy-to-let subject to confirming condition, lease documentation, resale value and all auction charges. Do not rely on the headline guide yield or pursue a flip without verified works and costings.

Strategy Rating

Analysis Confidence

The property description, tenure, vacancy, lease length, one asking rent and several nearby sold prices are supplied, but the comparable specifications, condition, EPC, service charges, buyer fees, works and selling costs are missing.