Investors paid 126.40p per share in the New Listing for this property, and it became available on the Resale market April 6th 2016.
From London’s prestigious Barons Court in West Kensington, we’re pleased to bring you a property of rare distinction. A beautiful building within walking distance of the famous tennis courts of The Queen’s Club. View a short video from our Director of Property on why this is a great investment.
- The investment comprises 5 flats in Jubilee Mansions plus a 50% share of the Freehold interest of the entire building and is geared at 50% loan-to-value (LTV) of the purchase price. Gearing gives enhanced exposure to property price movements, and the potential for amplified returns; though investors must note amplified negative returns if prices fall.
- This Jubilee Mansions block is exceptionally well located in the prestigious area of West Kensington. The property is just 8 minutes walking distance to Barons Court and only 9 minutes walk to West Kensington Underground Stations.
- West Kensington is a very well established area surrounded by prestigious neighbourhoods such as Fulham, Chelsea and Hammersmith. Furthermore, the area is set to benefit from ongoing redevelopment plans approved by the Mayor of London. West Kensington is an attractive area to live in – with a vibrant community, international schools, and a diverse population – creating a unique character for the neighbourhood.
Our exit strategy is to sell the units individually rather than as a single investment, thereby realising the discount that we have secured from buying in bulk.
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.
The mortgage is provided by a major high street bank and has a two-year fixed interest rate of 3.8%. After this two-year period, the interest rate will switch to a variable rate based on the bank's base rate. At that point, we will assess the situation and either continue with the variable rate or fix the interest rate for an additional period. We have assumed a constant cost of debt and no rental growth in our annual income forecast. Please refer to our blog post on geared property for further details.
This investment comprises 5 flats (1 studio, 2 one-bedroom and 2 two-bedroom flats) plus a 50% share of the Freehold interest of the entire building.
The flats were acquired in good condition and the Chartered Surveyor's report identifies no material issues. We have made a provision of £3,000 for any remedial works that further testing reveals. There is also a provision of £6,000 for furnishings.
The total rent forecast for the 5 flats is £102,432 per annum. The number of vacant flats may vary month to month. For prudence we have factored into our forecasts an annual void rate of 3.8% and have not included any growth in rental values.
At the current level of rent, Gross Rental Yield would be 3.86% and the forecast Dividend Yield 1.83% (fully accounting for and after mortgage interest payments, 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.
This transaction was approved by our RICS qualified Director of Property.
This investment comprises 5 purpose built flats - 1 studio (flat 1), 2 one-bedroom (flats 3 and 10) and 2 two-bedroom (flat 4 and 6). Flat 4 and flat 6 also have the benefit of a balcony.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- - £1,186,245
- Deferred Tax
- - £33,844
- 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
- - £0
- Gross Rental Revenue
- = £102,432
- Gross Rental Yield
- - £74,059
- Annual Interest Payment
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £28,373
- 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.
Flats 1, 3, 4, 6, 10 Jubilee Mansions, Barons Court, London, W14 9SA,