PURCHASE AT AUCTION
Lot 7 Flat 1 132 Earls Court Road, Kensington, London, W8 6QL
A two bedroom lower ground floor flat over approximately 656 sq ft, forming part of a five storey converted building, in need of modernisation, well located for the popular amenities and transport links of Earls Court and Kensington High Street. Vacant Guide price £265,000
Key features
- To be offered on Wednesday 5 November
- Two bedroom lower ground floor flat
- Approximately 656 sq ft
- In need of modernisation
- Leasehold. A new 125 year lease will be granted on completion
Vacant
Acquisition Cost
| Purchase Price | £160,000 |
| Stamp Duty | £10,000 |
| Agent's Fee (1.5%+vat ) | £2,500 |
| Legal & Misc (1% of PP) | £7,500 |
| Total Acquisition Cost | £180,000 |
Cash Investment Required
| 35% Deposit at Purchase | £56,000 |
| Stamp Duty | £10,000 |
| Interest for 12months @ 15% for £455k | £15,000 |
| Agent & Legal | £2,500 |
| Professionals / B.R / Structural / QS / MS, etc. | £5,000 |
| Misc | £12,500 |
| Total | £101,000 |
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 - One Bedroom Flat | 1 |
| Total Units | 1 |
GDV Appraisal continued
| Gross Development Value (Collective) | |||||
| Units | Level | Description | GIA m2 | NIA m2 | Value |
| 1 | Ground | 1 Bedroom, Receptions, kitchen, Bathroom etc | 71 | 71 | £400,000 |
| Total: | Sale@£5,500/m2 | 71 | 71 | £400,000 | |
| Gross Rental Value (Collective) | ||||
| Units | Level | Description | Sqm | Value (Rent) |
| 1 | Ground | 1 Bedroom, Receptions, kitchen, Bathroom etc | 71 | £18,000 |
| Total: | @ 4.5% Yield |
71 | £18,000 | |
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 propertie.s 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