Investors paid 18.58p per share in the New Listing for this property, and it became available on the Resale market May 1st 2015.
We believe that Hayes, and this property, has a compelling investment case underpinned by three factors:
- A Crossrail station is due to open in Hayes in 2018. Crossrail is currently Europe’s largest infrastructure project and JLL, in their report on Crossrail investment opportunities, forecast Hayes to see +41% capital growth through to the end of 2020. Our property is just a 3-minute walk from the station.
- In 2013, the council approved the £250m redevelopment of a 17-acre former industrial site in the area. The Old Vinyl Factory, close to the Crossrail station, is forecast to deliver 4,000 jobs, 650 homes and 750,000 sq ft of commercial and leisure space in Hayes by 2022.
- Hayes, which used to be largely industrial, is on its way to becoming a business and high-tech hub. Boris Johnson, the former Mayor of London, allocated £7.7m to help build an incubator focused on 3D printing in Hayes. US wireless music systems company Sonos and global IT firm Champ Cargosystems are among the technology companies that have recently committed to long leases in Hayes.
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 property was acquired via ‘private treaty’ (normal sales process). Contracts were exchanged on April 17th and purchase completed on May 1st 2015.
The flat was acquired from an institutional lender, and requires minor cosmetic updates as detailed in the Chartered Surveyor’s Report. We have made a provision of £1,200 for these works.
The total rent forecast is £11,400 per annum. After accounting for building service charges payable to the Freeholder for block management, maintenance and insurance of the building, this equates to a Gross Rental Yield of 4.15% and a forecast Dividend Yield of 2.54% (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 +27% through to 2020, for the area around Hayes station.
This transaction was approved by our RICS qualified Director of Property.
A one bedroom apartment with a separate living room, bedroom, kitchen and bathroom.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- Deferred Tax
- - £8,331
- 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
- - £1,654
- Gross Rental Revenue
- = £9,746
- Gross Rental Yield
- - £3,760
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £5,986
- 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 35, Sherringham Court, Hayes, London, UB3 1AX,