Investors paid 18.95p per share in the New Listing for this property, and it became available on the Resale market June 30th 2015.
We believe that this flat and the area of Seven Kings have a compelling investment case, which is underpinned by two factors:
- A Crossrail station is due to open in Seven Kings in 2018. Our property is just 600m from Seven Kings station, and JLL have forecast +37% capital growth within a 750m radius of that station from the end of 2014 through to the end of 2020. Crossrail is currently Europe’s largest infrastructure project.
- Our Seven Kings property is well located to benefit from very good existing road and rail connections, and from proximity to local amenities in nearby Ilford. Road access is very good: the property is close to London’s inner Ring Road, the A406, and the M11 motorway that leads to Stansted Airport. The area is also close to Ilford, with its shopping centre, supermarkets and cinema.
Read more detail on the investment case here.
Property Partner does not provide investment advice and any general information is provided to help you make your own informed decisions. If you are unsure whether an investment is suitable for you, you should contact a financial adviser for advice.
This flat was acquired via ‘private treaty’ (normal sales process). Contracts were exchanged on June 2nd and purchase completed on June 30th 2015.
The flat was acquired in reasonable condition. The Chartered Surveyor’s report does not highlight any particular issues. However, from our own inspection, we believe the property would benefit from some cosmetic improvements. We have made a provision of £1,500 over and above the maintenance budget, in case redecoration is required.
The total rent forecast is £12,000 per annum. For prudence we have factored into our forecasts an annual void rate of 3.8%.
After accounting for building service charges, payable to the Freeholder for block management, as well as maintenance and insurance of the building, this equates to a Gross Rental Yield of 4.80% and a forecast Dividend Yield of 2.95% (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.
For prudence, we haven’t included any growth in rental values in our forecasts. However, it is worth noting that JLL forecast rental growth of +24.3% from the end of 2014 through to 2020, for the area around Seven Kings station.
This transaction was approved by our RICS qualified Director of Property.
A one-bedroom first-floor flat. The flat has a separate living room, kitchen and bathroom.
The flat has an allocated off-street parking bay and communal gardens.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- Deferred Tax
- - £6,188
- 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
- - £1,200
- Gross Rental Revenue
- = £10,800
- Gross Rental Yield
- - £4,062
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £6,738
- 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.
37, Friars Close, Ilford, London, IG1 4AZ,