Flat D, 49 High Street, Penge, London, SE20 7HW

Description

A Ground Floor One Bedroom Flat in Need of Refurbishment. The property comprises a ground floor one bedroom flat situated within a mid terrace building arranged over ground and first floors.

Accommodation

Ground Floor: Reception Room, Kitchen, Bedroom, Bathroom.

Location

The property is situated on a mixed-use road close to local shops and amenities. The open spaces of Penge Recreation Ground are within easy reach. Transport links are provided by Penge East rail station.

Tenure / Property Information

Investment Analysis

Nearby completed sales on High Street range from £156,000 to £340,000, with the most recent supplied sales at £156,000 and £210,000. The evidence does not provide comparable sizes, bedroom counts, condition, service charges or lease lengths, so these are indicative scenarios rather than a formal valuation. A base GDV of £210,000 uses the most recent £210,000 same-street sale, with £156,000 and £260,000 used as lower and upper evidence-based scenarios. The approximately 60-year lease is a material value, finance and resale consideration.

Investment Snapshot

Strategy Recommendation

Proceed only conditionally after reviewing the legal pack, confirming lease terms and charges, inspecting the refurbishment requirement, and validating the achievable rent. The opportunity is potentially attractive at the guide, but the short lease and unknown total project cost make an unconditional purchase unsuitable.

Works Required

Refurbishment is required, but the supplied evidence does not identify the specific defects or provide a scope of works. Obtain a full inspection and legal-pack review before costing the project. The EPC is already rated C.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £85,000 guide plus the known £1,800 administration charge, the purchase price appears low relative to the supplied same-street sales, but refurbishment costs and other completion charges are unknown. A 75% refinance against the £210,000 base GDV would be £157,500, but cash left in cannot be calculated without a supported works budget, full acquisition costs and finance assumptions. Lease length and lender criteria require particular scrutiny.

Buy-to-Let Analysis

The supplied advertised asking rent is £1,047 pcm, equivalent to £12,564 annually. Against the £85,000 guide, this indicates a gross yield of approximately 14.8%, before refurbishment, finance, service charge, leasehold costs, voids, management, tax and other fees. This is an asking rent rather than achieved rent, and no council tax, service charge, ground rent or insurance information is supplied. The approximately 60-year lease may restrict mortgageability and future resale.

Flip Analysis

A base GDV of £210,000 is indicated only by a same-street completed sale whose size, accommodation and lease details are not supplied. The project resale surplus cannot be calculated because refurbishment costs, selling costs and other acquisition charges are unsupported. The short approximately 60-year lease may materially affect the resale market and buyer finance.

Investor Risks & Due Diligence

• Approximately 60 years remain on the lease, with no lease-extension cost or terms supplied.

• Comparable sale sizes, bedroom counts, condition and lease lengths are not provided.

• Refurbishment scope and cost are unknown.

• The £1,047 pcm figure is an advertised asking rent, not achieved rent.

• Service charge, ground rent, council tax, insurance, finance costs and possible legal-pack disbursements are unknown.

• Special conditions may impose additional search, seller, legal or transfer charges.

• The supplied GDV scenarios are indicative only and not formal valuations.

Recommendation

Proceed only conditionally after reviewing the legal pack, confirming lease terms and charges, inspecting the refurbishment requirement, and validating the achievable rent. The opportunity is potentially attractive at the guide, but the short lease and unknown total project cost make an unconditional purchase unsuitable.

Strategy Rating

Analysis Confidence

There are several same-street completed sales and one advertised rental, but comparable property attributes, refurbishment scope, leasehold costs, buyer fees and disbursements are incomplete.