Target: Clapham Junction Investment (SW11)


Clapham Junction Period Maisonette ripe for conversion into flats


  • Clapham Junction period maistonetteCurrently 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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Target: Tower Hill Investment (E1)


Tower Hill split level apartment with light conversion potential and a motivated seller


  • Londinium Tower - superb Zone 1 positioning to the City
    Londinium Tower – superb Zone 1 positioning to the City

    733 sqft leasehold split level apartment in prime Tower Hill zone 1 location

  • 2 bedrooms / 1 reception room / 1 bathroom, across 2 floors. The existing layout can be optimised to create an additional bedroom
  • Close to Tower Hill / Tower Gateway / Aldgate / Aldgate East / St. Katherine’s Docks / Brick Lane / Spitalfields / the City
  • Marketed price: £525k. Expect competition at this level and bids to exceed this level even within the current market environment.

Investment Strategy


  • Existing layout lends itself to simple conversion to a 3 bedroom apartment
    Existing layout lends itself to simple conversion to a 3 bedroom apartment

    Purchase price of £531.5k purchase price (£733psf) representing an increase versus £525k guide due to anticipated competition.

  • Competitive price psf on acquisition and bid price still represents day 1 price arbitrage given motivated vendor. On an overall asset value, limited number of 2 bedroom apartments with potential value add that are not ex-council properties at this price point.
  • Forecast 24 month hold period assumed to carry out prospective 3rd bedroom creation and sale. Forecast works conservatively estimated at £2.5k.
  • Tenants in situ paying £423pw until September after which single AST expected with 3 sharing professionals paying £550pw. Expected without agency cost if self-advertised and managed. September 2017 rent expected to generated 8.3% ROE.
  • Debt assumed at 75% LTV and 3% p.a. interest rate ; dependent on availability. Seek independent valuation on rental to overlook existing rental from tenants in situ.
  • Assume sale at £700k (sub £1k psf at £955psf) as a 3-bedroom split level flat, which is competitive in today’s values given the location for both owner occupiers as well as BTL investors (4.3% exit yield). No earlier refinancing assumed given expected early repayment charges.
  • Projected 36.9% IRR and 1.84x cash multiple (pre-tax).
  • Considerations: Structural engineer sign off and freeholder consent required as per lease requirement.

    Financial Analysis:

    Tower Hill


Click here for a link to this property


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Contact manager@londonpropertyanalyst.co.uk to see how LPA’s bespoke property consulting services can help you achieve successful acquisitions in the highly competitive and lucrative London property market


Target: Battersea Investment (SW8)


Battersea Freehold Period House with conversion potential and a motivated seller


  • 1,207 sqft freehold period house in Battersea

    Period freehold house with expansion potential into the roof area
    Period freehold house with roof expansion potential
  • 3 bedrooms / 2 reception rooms / 2 bathrooms, across 2 floors. The roof contains plenty of space to expand into. With strong precedents up and down the street, this remains one of the last properties offering this potential value add and space creation
  • Close to Nine Elms / Battersea power station and general regeneration area. Will be less than 0.5 miles from the new Northern line Battersea Park station set to open in the coming 3-4 years
  • 0.2 miles to the renowned Battersea Park, 0.1 miles to Queenstown Road station and 0.2 miles to Battersea Park station
  • Marketed price: £775k (down from £800k). Target a £725k (equivalent to a highly competitive£601psqft). If required, negotiate up to a maximum of £750k (equivalent to a competitive £620psqft)

Investment Strategy


  • battersea-floorplanDay 1 price arbitrage given motivated vendor and current condition of the overall property needing at the very least a light refurb. Assumed £725k / £601psqft for acquisition and assumed capex for new staircase, council approvals and roof conversion works to create a new bedroom and bathroom on the 2nd floor
  • Strong interim rental available via single AST or licensed HMO route generating 7.15% gross yield; latter HMO route expected to yield a starting £720pm rental per room across 6 rooms once the roof conversion has taken place
  • Sale in 2 years at conservative £1mn (£622/sqft – almost the same as the acquisition price!) accounting for greater internal space through roof conversion and based on current market value and forecast capital appreciation in this area. No reversionary capex assumed to a family home given assumption of strong demand due to the competitive gross yield rental achieved through 6 bedrooms for single professional sharers
  • Potential refinancing in interim to further boost IRR possible based on rental value but not assumed as part of this analysis yielding 30.5% IRR and 1.78x cash multiple.

    Financial Analysis:

    battersea financials


Click here for a link to this property

Note: There is a somewhat interesting dancing pole in one of the bedrooms. LPA would suggest that you take this out (given we are confident it is not a structural fixture!)


London Property Analyst provides Expert Consulting Services

Contact manager@londonpropertyanalyst.co.uk to see how LPA’s bespoke property consulting services can help you achieve successful acquisitions in the highly competitive and lucrative London property market