Clapham Junction Period Maisonette ripe for conversion into flats
- Currently marketed at £675k that is equivalent to £711 per square foot, this property may seem simply fair value / even moderately expensive given the property style and within Clapham Junction as a location.
- However beneath the shell, this 3-bedroom period property maisonette stands out with key conversion potential for a proposed loft conversion and split of the demise into two apartments (see drawings). The conversion is expected to yield additional sq footage of circa 700sqft.
- Note, the seller has already conducted drawings and obtained the necessary Wandsworth council planning consents (see here; also to note that CIL is liable). The consent ensures that valuable time is saved as a buyer to accelerate straight to works given that it would also be prudent to obtain necessary freeholder consents / provide notifications of works commencing during legal conveyancing.
- The proposed pricing post-conversion is £550k for the new 3-bedroom flat and £350k for the new 2-bedroom flat. One would be smart to also look at the rental prospects for these apartments since a refinancing may be a smarter allocation of equity capital in a somewhat cooler sales market. Clapham Junction is to benefit from further regeneration (see here) plus also potentially benefit from Crossrail 2 in the longer term (which could make it only 1 station away from Kings Road Chelsea in the future).
- The current market displays signs of weakness and uncertainty, in which investors must be increasingly savvy / cautious. This property is highly attractive and can potentially generate strong risk-adjusted returns comparative to other opportunities. Given the level of envisaged work, it is not a simple project for the faint-hearted but will need a strong project manager monitoring both costs and timings. Thus, LPA tips this as a good opportunity or example for the more active investor. We are also not surprised by the fact that that there is already competition on this property at the asking price level yet are of the view that there is sufficient margin in the project.
- See the link to the property here.
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