St. Johns Court, Finchley Road, Hampstead, London

Description

The property comprises a Leasehold Ground Rent Investment amounting to £4,120 per annum. The net rent is £2,611 per annum after the ground rent to the head lessee is paid. Note: A significant opportunity exists to unlock additional value through rooftop development, with the potential to create further accommodation, subject to obtaining the necessary planning permission and all required statutory consents. There is a Vodafone telecoms lease currently holding over at £16,000 rent per annum, with 50% of this rent due to the head lessee subject to demand by the head lessee. The head lessee has not demanded this for the last circa 2 years. Producing £10,611 per annum.

Accommodation

31 flats are referred to in the ground rent schedule. Potential for further rooftop accommodation is mentioned, subject to planning permission and all required statutory consents.

Location

Conveniently situated between Goldhurst Terrace and Canfield Gardens, close to shops and travelling facilities including Finchley Road Underground Station, served by the Jubilee and Metropolitan Lines, and South Hampstead Overground Station.

Tenure / Property Information

Investment Analysis

The supplied £515,000–£530,000 Land Registry sales relate to individual flats at St. Johns Court, not the leasehold ground rent investment, so they do not provide a reliable GDV for this lot. The income evidence supports a contractual net ground-rent income of £2,611 per annum. The stated £10,611 per annum appears to include an additional £8,000 telecoms income, but this is conditional on demand by the head lessee and has not been demanded for approximately two years. The rooftop opportunity is speculative and cannot be valued without planning and statutory consents.

Investment Snapshot

Strategy Recommendation

Consider only as an income investment, subject to reviewing the head lease, ground-rent schedule, telecoms lease, arrears or collection history, and all special-condition fees. Underwrite the £2,611 contractual net income and treat the telecoms and rooftop opportunities as unproven upside.

Works Required

No refurbishment works are identified in the evidence. The rooftop development opportunity should be treated only as a planning and feasibility exercise, subject to all necessary consents, rather than as committed development value.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR strategy cannot be established because no supported GDV, refurbishment budget or refinance valuation is available. The property has approximately 80 years remaining on its head lease, and refinanceability would require specialist assessment of the investment income, lease terms and telecoms position.

Buy-to-Let Analysis

This is not a conventional residential BTL property. On the contractual net income of £2,611 per annum, the gross yield is approximately 5.22% on the £50,000 guide, or 5.07% including the £1,500 buyer premium. Including the conditional telecoms income would produce £10,611 per annum and approximately 21.22% on the guide, but that upside is not secure because the telecoms lease is holding over and the additional rent has not been demanded for circa two years. The supplied £2,492 pcm flat rental listing is not relevant evidence for valuing this ground rent investment.

Flip Analysis

A flip analysis is not supported. The available comparable sales are individual flats rather than this leasehold ground rent investment, while the rooftop accommodation is only a potential opportunity subject to planning and statutory consents. No supported resale value or selling-cost allowance is available.

Investor Risks & Due Diligence

• The additional £8,000 telecoms income is conditional on demand by the head lessee and has not been demanded for approximately two years.

• The telecoms lease is holding over, so its continuation and income terms require legal verification.

• The head lease has approximately 80 years unexpired, which may affect value, financing and future lease-extension considerations.

• The rooftop development potential is subject to planning permission and all required statutory consents and has no supported value in this analysis.

• The seller may charge additional completion fees under the special conditions, but those amounts are not supplied.

• The supplied comparable sales are for individual flats and may not indicate the value of this ground rent investment.

Recommendation

Consider only as an income investment, subject to reviewing the head lease, ground-rent schedule, telecoms lease, arrears or collection history, and all special-condition fees. Underwrite the £2,611 contractual net income and treat the telecoms and rooftop opportunities as unproven upside.

Strategy Rating

Analysis Confidence

The guide price, buyer premium, lease term, ground-rent income and telecoms information are supplied, but there is no specialist valuation, full legal documentation, confirmed telecoms collection, development appraisal or relevant comparable evidence for the investment itself.