Investors paid 28.68p per share in the New Listing for this property, and it became available on the Resale market October 1st 2015.
This beautifully-located lakeside property is in the area of Thamesmead, which is home to one of the country’s largest regeneration projects and close to two Crossrail stations.
We believe that this house and the area of Thamesmead have a compelling investment case, which is underpinned by three factors:
- The £305m regeneration project and planned transformation of Thamesmead over the next 15 years. This is one of the country’s largest regeneration projects and ought to have a significant impact on long-term prospects.
- The location, close to the Crossrail station, suggests further capital growth potential: JLL forecast price growth of 45% from the end of 2014 to the end of 2020 for properties within 750m of Abbey Wood station. This property is 1.5km from the station, but should still derive significant benefit.
- The property benefits from a beautiful outlook across the lake of Birchmere Park, and is within walking distance of the park itself.
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.
This property was acquired via ‘private treaty’ (normal sales process). Contracts were exchanged on September 15th and purchase completed on October 1st 2015.
The house was acquired tenanted and in good condition. The Chartered Surveyor’s report identifies no material issues. However, from our own inspection we noted slight cosmetic wear. Accordingly, we have made a provision of £4,000 for any redecoration, tests and remedial work that may be required. There is also a provision of £1,200 for furnishings.
The total rent forecast is £14,400 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 4.21% and a forecast Dividend Yield of 2.55% (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 Savills forecast rental growth for London (excluding ‘prime’ central London markets) of 29.5% over the five years from January 2015.
This transaction was approved by our RICS qualified Director of Property.
A two storey end of terrace house, with a living room on the ground floor, and a kitchen and breakfast room on the mezzanine level, which is a raised ground floor. Upstairs, there are three bedrooms and a family bathroom.
The property includes a rear garden and off-street parking.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- Deferred Tax
- - £8,542
- 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
- - £310
- Gross Rental Revenue
- = £14,090
- Gross Rental Yield
- - £5,330
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £8,760
- 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.
22 Amhurst Walk, Thamesmead, London, SE28 8RJ,