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Accommodation
The property provides the following approximate floor areas:
| Ground Floor | 42.0 sq m | 453 sq ft |
| First Floor | 42.0 sq m | 453 sq ft |
| Second Floor | 42.0 sq m | 453 sq ft |
| Third Floor | 26.0 sq m | 279 sq ft |
| Total | 152.1 sq m | 1,637 sq ft |
A set of floor plans is available to download.
Tenure
Freehold.
Tenancy
The rooms are let to working professional tenants as follows:
| Accommodation | Description | Start Date | Term | Rent pcm |
| Room 1, First Floor | Double, en-suite | 3rd July 2024 | 6 months | £970.00 |
| Room 2, First Floor | Double, en-suite | 15th Aug 2024 | 6 months | £1,050.00 |
| Room 3, Second Floor | Double | 5th July 2024 | 6 months | £1,050.00 |
| Room 4, Second Floor | Double | 13th Sept 2024 | 6 months | £850.00* |
| Room 5, Third Floor | Double, en-suite & kitchenette | 18th June 2024 | 6 months | £1,200.00 |
*This room is let at a reduced rate as the tenant uses the WC/shower room on the ground floor.
| Total Monthly Income | £5,120 pcm |
| Total Annual Income | £61,440 per annum |
The Landlord currently pays the following monthly expenses:
| Expenditure | Amount Pcm | Amount PA |
| Utilities (EDF) | £428.00 | £5,136.00 |
| Broadband | £28.00 | £336.00 |
| Water Charges | £63.00 | £756.00 |
| Council Tax (Band F) | £300.00 | £3,600.00 |
| Building Insurance | £60.00 | £720.00 |
| Television Licence | £15.00 | £180.00 |
| Cleaner | £180.00 | £2,160.00 |
| Total | £1,074.00 | £12,888.00 |
The property is currently managed by Leafy Estates at a charge of 8% of the monthly rent plus VAT (£410.00pcm / £4,915.20pa + VAT). However, a purchaser is not tied into this management agreement and can opt to self-manage to save management fees.
As a result, the net income to an investor is currently £43,637 per annum.
Development Potential
The property offers potential for extension and development over the rear garden area to create additional space, subject to obtaining the necessary planning consents. The adjoining properties have been extended in such a manner, as can be seen in the photo gallery.
There is also an opportunity to convert the property back into a single-family home.
Sales Evidence
The investment value is underpinned by the vacant possession value, as evidenced by the following sales:
| Address | Description | Date | Price |
| 81 Mount Drive, Harrow, HA2 7RW | 3-bed, 1-bath 155 sq m (1,668 sq ft) | Jun-24 | £782,000 / £468 per sq ft |
| 48 Lankers Drive, Harrow, HA2 7PB | 3-bed, 1-bath 111 sq m (1,195 sq ft) | Apr-24 | £760,000 / £635 per sq ft |
| 69 Blenheim Road, Harrow, HA2 7AQ | 5-bed, 2-bath | Feb-24 | £790,000 |
| 1 Meadow View, Harrow, HA1 3DN | 4-bed, 3-bath 140 sq m (1,507 sq ft) | Jan-24 | £840,000 / £557 per sq ft |
| 83 West Street, Harrow, HA1 3EL | 4-bed 123 sq m (1,324 sq ft) | Oct-23 | £825,000 / £623 per sq ft |
VAT
VAT is not applicable.
Proposal
We are instructed to seek a figure in the region of £650,000 (Six Hundred and Fifty Thousand Pounds), subject to contract, reflecting a gross yield of 9.5% and a capital value of £397 per sq ft.
Please note that a purchaser will be re-charged the costs of the searches (£600 + VAT) which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of 1.0% of the Purchase Price plus VAT.
Investment Considerations
An opportunity to acquire a residential HMO investment opportunity;
Located in an affluent London borough;
A large 5-bedroom property arranged over ground and three upper floors with parking;
The property is fully let, subject to five Assured Shorthold Tenancies (AST’s);
Producing a total gross income of £61,440 per annum;
Potential to extend the property at the rear, subject to obtaining the necessary planning consents;
Potential to convert the property back into a single-family home;
A purchase at the asking price reflects an attractive yield;
The investment value is at a significant discount to the vacant possession value;
Attractive lot size for an investor;
