Investors paid 27.30p per share in the New Listing for this property, and it became available on the Resale market April 17th 2015.
We believe that the London Borough of Sutton has a compelling investment case underpinned by:
- Sutton’s location at the border between London & the South-East. The highly-regarded research team at Knight Frank forecasts that these two regions will be the two fastest-growing in the country over the next 5 years. Over this period, they are forecast to grow by 25.8% and 23.4% respectively, relative to a UK average of 18.2%. Sutton is ideally-placed to benefit from this growth in both areas
- Sutton’s very good transport connections and excellent schools. These factors make it an especially attractive destination for those leaving central London
- £50m redevelopment of Sutton’s High Street, approved by the former Mayor of London, Boris Johnson, is forecast to bring nearly 500 new jobs to the area
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), with the price agreed in February 2015. Contracts were exchanged on March 18th and the purchase completed on April 17th 2015.
The property is 9 minutes’ walk from West Sutton station, which is on the Thameslink train line. It’s 14 minutes’ walk from Sutton station, which is 26 minutes from London Victoria and 19 minutes from Clapham Junction. Sutton station is also on the Thameslink line that goes through Wimbledon, which has a London Underground station.
Sutton’s High Street, which is undergoing a £50m redevelopment, is 10 minutes’ walk away. The Royal Marsden Hospital, two miles away, is a major employer in the area whose staff have a strong propensity to rent – driving demand for rental stock and supporting values.
The property was acquired vacant from an owner-occupier. Tenants have been secured and the property has been let at a rent of £1,150 pcm, which is in line with our forecasts. After accounting for service charges payable to the Freeholder for management, maintenance and insurance of the building, this equates to a Gross Rental Yield of 4.51% and a forecast Dividend Yield of 2.80%. The dividend yield fully accounts for purchase costs, furnishings, forecast maintenance, anticipated voids, corporate taxation and all fees. UK taxpayers are entitled to a 10% dividend tax credit, prior to April 2016. After this date, the credit is to be replaced with 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 - any growth in rent would be incremental to our forecasts.
This transaction was approved by our RICS qualified Director of Property.
A two bedroom apartment with a separate living room, kitchen and bathroom. The flat is on the first floor of this building, which contains 5 flats. There is off-street parking at the front of the property on a first-come-first-served basis and residents’ parking in the street.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- Deferred Tax
- - £3,627
- 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
- - £500
- Gross Rental Revenue
- = £13,300
- Gross Rental Yield
- - £4,785
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £8,515
- 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.
Flat 3, 51, St James Road, Sutton, London, SM1 2TG,