PURCHASE AT AUCTION
Lot 571 - Flat 21C Osterley Park Road, Southall, UB2 4BL
A two bedroom first and second floor flat, forming part of a purpose built block, in need of modernisation, well located for Southall town centre, links to the M4 and Elizabeth Line connections.
Vacant
Guide price: £165,000
Key features:
- Two bedroom first and second floor flat
- In need of modernisation
- Well located for Southall town centre
- The property forms part of a three storey purpose built block.
- Leasehold
Acquisition Cost
| Purchase Price | £700,000 |
| Stamp Duty | £60,000 |
| Agent's Fee (1.5%+vat ) | £12,600 |
| Legal & Misc (1% of PP) | £7,000 |
| Total Acquisition Cost | £780,000 |
Cash Investment Required
| 35% Deposit at Purchase | £245,000 |
| Stamp Duty | £60,000 |
| Interest for 12months @ 15% for £455k | £68,000 |
| Agent & Legal | £19,600 |
| Professionals / B.R / Structural / QS / MS, etc. | £5,000 |
| Misc | £12,400 |
| Total | £410,000 |
profit
| Profit (Estimated) | ||
| GDV (Sale Price) | £1,485,000 | |
| Interest on Purchase | £68,000 | |
| Sales Agent + Legal (2%) | £19,600 | |
| Acquisition costs | £780,000 | |
| Development Costs | £253,000 | |
| Total Costs: | £1,120,600 | |
| Profit | £364,400 | |
Return on Investment
| ROI (Estimated) | |
| Cash Invested | £410,000 |
| Profit Earned | £364,400 |
| Total ROI | 88% |
| Profit for JV Partner (50% share) | £182,200 |
| ROI for JV Partner | 44% |
GDV Appraisal
| Units Type (HMO 8 Beds) | Units |
| Ground Floor - No of Bedrooms | 2 |
| First Floor - No of Bedrooms | 6 |
| Total Units | 8 |
| Gross Development Value (Collective) | |||||
| Units | Level | Description | GIA m2 | NIA m2 | Value |
| 1 | Ground | 2 Bedrooms, 3 Receptions, kitchen, shower etc | 171 | 171 | £769,500 |
| 1 | First | 6 Bedroom, storage, bathroom & shower | 159 | 159 | £715,500 |
| Total: | Sale@£4,500/m2 | 330 | 330 | £1,485,000 | |
| Gross Rental Value (Collective) | ||||
| Units | Level | Description | Sqm | Value (Rent) |
| 1 | Ground | 2 Bedrooms, 3 Receptions, kitchen, shower etc | 171 | £16,800 |
| 1 | First | 6 Bedroom, storage, bathroom & shower | 159 | £50,400 |
| Total: | @ 4.52% Yield |
£700 per Room | 330 | £67,200 |
DEVELOPMENT Costs (Estimates)
| Item | Description | Amount £ |
| Legals | £5,000 | |
| HVAC, Electric drawing | 3% of Construction Cost | £5,000 |
| Construction / Refurb | 330 sqm @ £600 | £200,000 |
| Insurances | For building & Construction | £3,000 |
| Finance Cost | 15% @ for £200k for 12m | £30,000 |
| Section106 / CIL | Nil | £0 |
| Contingency | 5% of Construction Cost | £10,000 |
| Total | £253,000 |
Disclaimer
Valuations & Appraisals by Sleek are strictly estimates only and you should use them on that basis. The valuation Model analyses prices for equivalent properties sold or sold in the area. These properties may differ in ways that we do not or cannot consider. Valuations are subjective and based on market forces, which may change. Valuations must not be used for property sale, purchase, mortgage or related purposes. You should seek a professional valuation from a qualified surveyor before deciding whether to buy or sell a property. We shall not be liable for any losses you or anyone else suffer due to relying on the valuations. This includes not being liable for any loss of property, loss of bargain, loss of capital through over-payment or under-sale or for any indirect, special or consequential loss.