Flat 4 Block G Peabody Estate, Rodney Road, Walworth, London, SE17 1BU

Description

A one bedroom first floor flat. Forming part of a purpose built block. In need of modernisation. Vacant.

Accommodation

First Floor - Entrance Hallway, Reception Room, Kitchen, Bedroom, Bathroom/WC.

Location

Located on the south west side of Rodney Road. Amenities are available nearby along Walworth Road, East Street and Old Kent Road. Recreational amenities of Nursery Row Park, Victory Community Park and Salisbury Row (Park) are easily accessible. Transport Elephant & Castle - Thameslink / Southeastern / Bakerloo / Northern.

Tenure / Property Information

Investment Analysis

The supplied Land Registry evidence comprises five sales in the same Block G, ranging from £183,000 in 2011 to £335,000 in 2019. The two most recent supplied sales were £295,000 and £335,000 in July 2019, averaging £315,000, but bedroom count, floor, condition and transaction circumstances are not provided and the evidence is dated. A base GDV of £315,000 is therefore an indicative evidence-led estimate only, with a £295,000–£335,000 scenario range. The £2,100 pcm rent is an advertised asking rent for a one-bedroom flat in nearby Block J, not achieved rent for this property.

Investment Snapshot

Strategy Recommendation

Potential BTL or BRRR opportunity at the guide, subject to confirming the achieved achievable rent, lease-pack terms, service charges, ground rent and full modernisation cost. Do not bid on the apparent GDV spread alone; a maximum bid cannot be supported from the supplied evidence.

Works Required

Modernisation of the vacant one-bedroom flat, potentially including updating the kitchen, bathroom, decoration, flooring and other finishes. The evidence does not quantify the works or identify specific defects, so no refurbishment allowance is estimated.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the indicative £315,000 base GDV, 75% refinance would be approximately £236,250. The apparent uplift over the £160,000 guide is substantial, but the cash requirement and cash left in cannot be calculated because refurbishment costs and known purchase costs are unavailable. The new 990-year lease is stated, but legal-pack terms should be checked before relying on the refinance case.

Buy-to-Let Analysis

At the £160,000 guide, the nearby advertised asking rent of £2,100 pcm implies annual gross rent of £25,200 and a 15.75% gross yield before works, finance, service charges, tax and other costs. This is not an achieved rent and relates to Block J rather than the subject flat, so the rent and yield require verification. Net yield cannot be established because refurbishment, service charge, ground rent, purchase costs and operating costs are unavailable.

Flip Analysis

The supplied same-block sales support an indicative £295,000–£335,000 value range, with a £315,000 base case. A flip surplus cannot be calculated because refurbishment costs, selling costs and purchase costs are not supplied. The comparable evidence is also dated and does not identify bedroom count or condition.

Investor Risks & Due Diligence

• The comparable sales are dated, with the latest supplied transaction in July 2019.

• The sold comparables do not state bedroom count, floor, condition or internal specification.

• The £2,100 pcm figure is an advertised asking rent in nearby Block J, not achieved rent for the subject flat.

• The property is stated to need modernisation, but no scope or cost of works is supplied.

• Service charge, ground rent, council tax, heating, parking and other running-cost information is unavailable.

• Buyer, administration, legal, finance and selling costs are not supplied.

• The new 990-year lease and other lease terms remain subject to review of the legal pack.

Recommendation

Potential BTL or BRRR opportunity at the guide, subject to confirming the achieved achievable rent, lease-pack terms, service charges, ground rent and full modernisation cost. Do not bid on the apparent GDV spread alone; a maximum bid cannot be supported from the supplied evidence.

Strategy Rating

Analysis Confidence

Same-block sale evidence and nearby one-bedroom asking-rent evidence are available, but the sales are dated, comparable specifications are incomplete, and refurbishment, lease, service-charge, ground-rent, buyer-cost and selling-cost information is missing.