Investors paid 35.78p per share in the New Listing for this property, and it became available on the Resale market October 29th 2015.
Standing in a cul-de-sac, close to three parks and Forest Gate's upcoming Crossrail station - this house is very well located. It also benefits from the regeneration seen in Stratford, thanks to the London 2012 Olympics.
We believe that the area of Forest Gate has a compelling investment case, based on these three factors:
- Crossrail will start running from Forest Gate station in 2019. Crossrail is currently Europe's largest construction project and JLL forecasts property price growth of +41% between the end of 2014 and the end of 2020, in the area around Forest Gate station. This house is only 500m from the station.
- A highly attractive location, within walking distance of three parks, three stations and the amenities of Stratford. Liverpool Street, in the heart of London’s financial district, is only 15 minutes’ journey from Forest Gate station and key roads including the A406 ring road are close by.
- Being next to the area of Stratford, which has seen substantial regeneration and infrastructure investment in the run-up to the London Olympics in 2012.
You can read more on the investment case here .
Property Partner does not provide advice and nothing in this Overview should be construed as investment or tax advice. The information which appears in this Overview is for general information purposes only and does not constitute specific advice.
The properties in this cul-de-sac were originally sold on a 'shared ownership' basis. This is where a private buyer acquires a share of the property, and a housing association the remainder. Through a process of 'staircasing', the private owner was able to buy the housing association out and take full ownership of the property. The former owner has now exited entirely, selling us both the Leasehold and Freehold. As this process happens with more and more properties in the development, there is likely to be a positive impact on the future values.
The house was acquired in good condition: the Chartered Surveyor's report identifies no material issues. However from our own inspection we noted slight cosmetic wear, and that the boiler is dated. Accordingly, we have made a provision of £3,000 for boiler replacement in the short term, redecoration and tests. There is also a provision of £1,500 for furnishings.
The total rent forecast is £18,000 per annum. For prudence we have factored into our forecasts an annual void rate of 3.8%.
At this level of rent, this equates to a Gross Rental Yield of 4.65% and a forecast Dividend Yield of 2.80% (fully accounting for purchase costs, furnishings, remedial cosmetic works, forecast maintenance, annual voids, corporate taxation and all fees). From April 2016 UK taxpayers are entitled to a £5,000 annual dividend allowance. See our FAQs here for more information.
We haven't included any growth in rental values in our forecasts, which is simply a precaution. However, it is worth noting that JLL forecast rental growth of +28% between end 2014 and end 2020, for the area around Forest Gate station.
This transaction was approved by our RICS qualified Director of Property.
A two storey mid terrace house, with a living room and separate kitchen on the ground floor, and two bedrooms and a family bathroom on the first floor.
The property includes off-street parking at the front and a good-sized rear garden.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- Deferred Tax
- - £5,097
- Latest Valuation
Note: The estimates provided do not constitute valuation advice; it remains your responsibility to determine valuation.
The HPI is an official statistic that captures changes in the value of residential properties across England and Wales. It is published by the Land Registry, which is a UK government organisation.
Note: Past performance is not a reliable indicator of future results.
Residential property investment is a total returns product. This information is the income component only. Increasing capital values have historically driven most of the return.
- Gross Rent per year (E)
- Service Charges
- - £0
- Gross Rental Revenue
- = £18,000
- Gross Rental Yield
- - £6,757
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £11,243
- Dividend Yield
Note: UK taxpayers are currently entitled to a £5,000 annual dividend allowance. This means that the total income related tax you pay is no greater than if you were to own the property directly. Gross rent and dividends may be lower than estimated. Tax treatment depends on individual circumstances and may be subject to change in future. See FAQs for more information on taxation. The Dividend Yield assumes an investment at the Latest Valuation.
2, Grebe Close, Forest Gate, London, E7 9RU,