Investors paid 42.74p per share in the New Listing for this property, and it became available on the Resale market December 1st 2015.
This beautiful, newly renovated Victorian property offers the highly compelling combination of an attractive location, the potential for amplified returns through gearing, and being just two minutes' walk from a Crossrail station. We believe that the investment case for this property and the area is strong.
- The investment comprises two newly refurbished, self-contained flats in a Freehold Victorian house, 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.
- Crossrail will start running from Hanwell station in 2019. JLL forecasts property price growth of +46% between the end of 2014 and 2020 for properties within 750m of Hanwell Crossrail station. Our flats are well within that distance.
- Hanwell benefits from proximity to some major businesses and employers, such as Ealing Hospital. This particular property also falls into the catchment areas of popular primary schools - St Mark’s, Oaklands and St Joseph’s, as well as a number of popular secondary schools, adding to the attraction of this family home to the rental market.
- London’s population continues to grow much faster than it can build new housing, so people are moving out from the centre. Hanwell should continue to be attractive to wealthy professionals who are willing to commute to have more living space.
- 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 being provided by a major high street bank and has a five-year fixed interest rate of 3.99%. Please refer to our blog post on geared property for further details.
The two flats were acquired in excellent condition following a just-completed refurbishment, and accordingly, the Chartered Surveyor's report identifies no material issues. We have made a small, precautionary provision of £600 for any issues that emerge and there is also a provision of £3,000 for furnishings.
The total rent forecast is £36,000 per annum. For prudence we have factored into our forecasts an annual void rate of 3.8%.
At this level of rent, Gross Rental Yield would be 4.11% and the forecast Dividend Yield 1.97% (fully accounting for and after mortgage interest payments, purchase costs, furnishings, 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 JLL forecast rental growth of +34% through to 2020, for the area around Hanwell station.
This transaction was approved by our RICS qualified Director of Property.
The property comprises two newly refurbished, self-contained flats in a Victorian house: a one-bedroom flat on the ground floor and the second, a duplex three-bedroom flat, over the first and second floors.
The ground floor flat contains a reception room, kitchen-dining room, shower room and a single bedroom. The dining room opens out onto the back garden.
The duplex flat has an open-plan reception/dining/kitchen area on the first floor, along with a shower room and bedroom. The second floor contains two further bedrooms and a shower room.
There is an off-road parking space in front of the property.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- - £404,000
- Deferred Tax
- - £6,562
- 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
- = £36,000
- Gross Rental Yield
- - £26,192
- Annual Interest Payment
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £9,808
- 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.
30, Cherington Road, Hanwell, London, W7 3HT,