Investors paid 27.42p per share in the New Listing for this property, and it became available on the Resale market June 24th 2015.
We believe that West Drayton and this property have a compelling investment case underpinned by three factors:
- West Drayton Crossrail station is due to open in the area in 2019. The decrease in journey times to central London is expected to have an impact on local GDP, which is a key driver of house prices.
- We note that West Drayton’s average property values are below those of surrounding areas – such as Iver, Langley and Uxbridge. This provides opportunity for capital growth as residents in nearby areas seek better value relative to where they live today.
- The area benefits from many nearby businesses and amenities, including Hillingdon Hospital, Stockley Business Park and Heathrow Airport - attracting many employees who will be looking to rent locally.
Read more detail on the investment case here.
This property was acquired via ‘private treaty’ (normal sales process). Contracts were exchanged on June 11th and purchase completed on June 24th 2015.
The flat was acquired vacant and in good condition. The Chartered Surveyor’s report identifies no issues. However, we have made a provision of £2,000 for tests that are required, for any remedial works that the testing reveals, and for sundry items such as window blinds and a washing machine. There is also a provision of £1,200 for furnishings.
The total rent forecast is £14,220 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 4.33% and a forecast Dividend Yield of 2.65% (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.
Due to over performance against historic provisions, there is surplus cash within the SPV. This is being returned to investors through the dividend over the remainder of the 5 year term. In the "Financials" section below, under "Rental Income Breakdown", we have shown the impact of returning this cash as a negative number in the "Property Insurance" line (presentation within Property Insurance is a temporary measure whilst our platform is updated to add a new descriptor).
For prudence, we have not included any growth in rental values in our forecasts - any growth in rent will be incremental to our forecasts.
This transaction was approved by our RICS qualified Director of Property.
A two-bedroom, first-floor flat with a separate living room, kitchen and family bathroom. The master bedroom also has an en-suite shower room.
The flat has the benefit of off-street parking for one car and communal gardens to the rear of the property.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- Deferred Tax
- - £3,605
- 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
- - £1,440
- Gross Rental Revenue
- = £12,780
- Gross Rental Yield
- - £4,743
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £8,037
- 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 34, Waterford House, West Drayton, Greater London, UB7 7DL,