London Flat C, 1 Rectory Road, Stoke Newington, London

Description

Vacant long leasehold second and third floor maisonette. Key features include a new 990-year lease, approximately 84.7 sq m (912 sq ft) GIA, and proximity to Rectory Road overground station and Stoke Newington High Street.

Accommodation

Second floor: reception room, kitchen and bathroom. Third floor: two bedrooms. GIA approximately 84.7 sq m (912 sq ft).

Location

Located on the west side of Rectory Road. The shops and amenities of Stoke Newington High Street are to the north west. Rectory Road overground station is approximately 0.1 miles to the north. The A10 is to the west and Hackney Downs Park is to the south east.

Tenure / Property Information

Investment Analysis

The supplied completed sales on Rectory Road range from £353,000 to £580,000. The most recent evidence is £495,000 in May 2024, while £580,000 in August 2023 provides a higher scenario. These comparables are not confirmed as identical in size, condition, floor arrangement or specification, and one address appears repeatedly with materially different sale prices. On the available evidence, an indicative low/base/high GDV range of £495,000/£537,500/£580,000 is used, subject to valuation and survey confirmation.

Investment Snapshot

Strategy Recommendation

Investigate as a potential BTL or BRRR purchase, subject to survey, legal review of the new lease, confirmation of service charges and validation of achieved rental and resale values. Do not bid solely on the apparent guide-to-value gap.

Works Required

No refurbishment works are evidenced in the supplied information. Obtain a survey and inspect the kitchen, bathroom, finishes, services, roof-related elements and lease documentation before budgeting works.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the base evidence-led GDV of £537,500, a 75% refinance is £403,125. This is materially above the £257,000 guide, but the cash position cannot be calculated because refurbishment costs, buyer/admin costs, finance costs and the eventual achieved valuation are unknown. The long lease and peppercorn ground rent are supportive, subject to legal review of the new lease.

Buy-to-Let Analysis

The supplied advertised asking rents are £2,750–£2,850 pcm, implying £33,000–£34,200 annual rent. Against the £257,000 guide, this indicates approximately 12.84%–13.31% gross yield, with a midpoint of 13.07%. These are asking rents rather than achieved rents, and service charges, insurance, finance, tax, management, maintenance and acquisition costs are not supplied, so net yield and total-cost yield cannot be established.

Flip Analysis

The evidence suggests a potential value gap between the £257,000 guide and the £495,000–£580,000 comparable range. However, refurbishment costs, acquisition costs, selling costs, condition and the achievable resale price are not supplied. A reliable flip surplus and maximum bid therefore cannot be calculated.

Investor Risks & Due Diligence

• Sold comparables show a wide price range and are not confirmed as directly comparable in size, condition or specification.

• Rental figures are advertised asking rents rather than achieved rents.

• No condition or refurbishment budget is supplied.

• Buyer premium, admin charge, service charge, insurance, finance and other acquisition costs are unknown.

• The new 990-year lease and peppercorn ground rent require legal review, including the full lease terms and any covenants.

• The auction guide is not a valuation and the eventual sale price may exceed it.

Recommendation

Investigate as a potential BTL or BRRR purchase, subject to survey, legal review of the new lease, confirmation of service charges and validation of achieved rental and resale values. Do not bid solely on the apparent guide-to-value gap.

Strategy Rating

Analysis Confidence

The property size, tenure structure, vacant possession and local sold/rental evidence are supplied, but condition, service charges, buyer/admin fees, achieved rents, comparable specifications and full legal details are absent.