Lewisham, London, SE6 4YJ | Investment Property for Sale | VES-SE6-606

6-bed licensed HMO in the attractive borough of Lewisham, achieving above market gross yield of 7.71%

£700,000

HMO Semi-Detached

VES-SE6-606

INITIAL INVESTMENT

£329,400

GROSS RENT / YIELD

£54,000 / 7.7%

NET RENT / YIELD

£41,476 / 5.9%

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Above average yield

Through our expertise and research, we have found that this property is above the average of this location based on data from REalyse, PropertyData and Zoopla

The higher the yield the stronger the return on investment.

The property

TENANCY

Tenanted

TENURE

Freehold

6 bedrooms

6 bathrooms

0

1,602

Fully Furnished

Newly converted 6-bed fully licensed HMO in the attractive borough of Lewisham, SE London, achieving above market gross yield of 7.71%.

Ideally located within walking distance to Catford (400m / 4 mins) and Catford Bridge (500m / 5 mins) train stations, this is a great location for commuters. Local amenities includes Tesco, Sainsbury's, Aldi and Iceland. There is a range of local restaurants and bars in the area also.

  • Fully licenced 6-bed HMO

  • Licence expires 21/06/2023

  • Property has been extended to include a loft conversion and made into a 6-bed HMO

  • All 6-bedrooms are en-suite

  • All bills and a cleaner included in the rent

  • Tenants are professionals (full-time employed)

  • Achieving £4,500 pcm / £54,000 pa

Rental Breakdown

  • Room A - Rent: £700 / Let since: 01/08/18

  • Room B - Rent: £750 / Let since: 01/08/18

  • Room C - Rent: £750 / Let since: 01/08/18

  • Room D - Rent: £800/ Let since: 01/09/18

  • Room E - Rent: £700 / Let since: 13/09/18

  • Room F - Rent: £800 / Let since: 01/08/19

Whilst the displayed financials below are market averages, these are the running costs provided by the landlord:

Running costs

  • Gas bill: £116.67 (£350 per quarter)
  • Electricity bill: £133.67 (£401 per quarter)
  • Water bill: 11.67 (£35 per quarter)
  • Council tax: £210
  • Virgin Wi-Fi bill: £42
  • Total pcm: £514
  • Total pa: £6,168

Tenancy

RENT

£54,000 p.a. / £4,500 pcm

TENANCY DEPOSIT

£4,000

TENANCY TYPE

AST

TENANCY AGREEMENT STARTED

14 months ago

TENANCY AGREEMENT ENDS

Periodic

Floorplans

Documents available on request, please contact for viewings or further questions.

The information relating to this property is supplied by the vendor and was the latest available information at the time of listing. Certain information may expire or become inaccurate over time.

Vesta makes no warranty as to the accuracy or completeness of the property listing or any associated information. All information should be reviewed by the purchaser and their solicitor.

Financials

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Rental Income

GROSS RENT PER ANNUM

£54,000

Equivalent of £4,500 per calendar month (PCM).

GROSS RENTAL YIELD

7.7%

Gross rent per annum divided by the purchase price.

NET RENT PER ANNUM

£41,476

Gross rent per annum minus fully managed operating costs.

NET RENTAL YIELD

5.9%

Gross rent per annum minus fully managed operating costs divided by the purchase price.

FULLY MANAGED OPERATING COSTS

£12,524

The total estimated sum of expenses calculated annually assuming a fully managed service.

Click to understand assumptions.

Disclaimer

All financial information is provided as a guideline only, is based on estimates and assumptions and is subject to change. Buyers are advised to seek independent financial advice. Capital at risk.

About Lewisham, SE London

Lewisham is an area of south east London includes Deptford, Catford, New Cross, Blackheath and Forest Hill.

Lewisham is located 5.9 miles (9.5 km) south of Charing Cross. The area is identified in the London Plan as one of 35 major centres in Greater London and plans to create a metropolitan centre to rival nearby Bromley and Croydon. Lewisham is undergoing a period of significant regeneration, creating new high quality business space and environments.

Lewisham is the fourth largest inner London Borough with a population of 282,000 and a working age population of 197,000. The economy of Lewisham has developed through the wider London economy and over 100,000 commute out of the borough every day into the city.

Lewisham is an affordable place to live, with quality amenities and good transport links. Lewisham’s workers are highly skilled, with almost four in ten adults educated to degree level and a high percentage working in knowledge industries. A large number of residents are self-employed or run micro business that provide services to central London.

The area is a major local transport hub, lying on the A20 road towards Dover and at the start of A21 to Hastings, with its own large bus station, railway station and the southern terminus of the Docklands Light Railway. London Underground lines run into the north of the borough at New Cross station and New Cross Gate station as part of the East London Line. Lewisham is served by Catford and Catford Bridge railway stations.

The average property price is £481,226 (18% below the London average of £591,258). The average sold price has increased 4.03% over the last year. New research looking at the highest levels of tenant demand found that Lewisham was the only inner borough in London to make the top ten with rental demand at 33% (VeriSmart, 2019).

The vision for the borough is that in ten years’ time Lewisham will be one of the fastest growing parts of the London economy making it an exciting time for the borough.

Ravensbourne Park Crescent,

London,

Greater London,

England,

SE6 4YJ

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Important Note

All information contained in this website is provided as a guideline only, is based on estimates and assumptions, may not be accurate or complete, and is subject to change. We make no representations or warranties with regards to this information, expressed or otherwise. A buyer who relies on such information does so at their own risk. Buyers are advised to seek independent financial advice and should undertake their own due diligence.

Your capital is at risk. Property values may decline and the property might not be able to be rented at amounts sufficient to cover debt interest costs, operating expenses and liabilities, and might not result in a positive cash flow. Property is an illiquid asset and should not be viewed as a short-term investment.

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