Opportunity to purchase a HMO house in London generating £55,731 gross rent pa & gross yield of 5.3%
£1,050,000
HMO End of Terrace House
VES-SW9-003
INITIAL INVESTMENT
£330,250
Based on
deposit: £262,500
stamp duty: £65,250
mortgage fees: £1,500
conveyancing fees: £1,000
GROSS RENT
£55,731
GROSS YIELD
5.3%
The property
TENANCY
Tenanted
TENURE
Freehold
6 bedrooms
2 bathrooms
1 reception room
1,677
Fully Furnished
Property information
- Walking distance to 3 stations: 0.4 mile to Brixton tube, 0.5 mile to Clapham North tube and 0.6 mile to Clapham overground
- Double-fronted Victorian House
- HMO licence for up to 6 people in 6 rooms
- 6 double bedrooms, each with space for a desk
- Large lounge
- Large kitchen
- Study
- Garden with access via the kitchen
- EPC rating D
Rental information
- Monthly net rental income: £4,200
- Annual net rental income: £50,400
- Tenants are paying all bills themselves including gas, electricity, council tax, water, TV licence, internet, fortnightly cleaner
- Bills are estimated to come to £5,331 per year
- Therefore annual gross rental income: £55,731
- 12-month joint AST ending 4 September 2021; professional tenants
- No voids or rent arrears in the last 14 years due to sought-after area for young professionals
Potential to increase revenue
- Potential to increase the rents by upgrading the bathrooms and kitchen, spending approx. £20k. If this was done, the vendor believes the following annual gross rents could be achieved, please contact the sales team for rent comparables in the area (supplied by vendor):
- £62,496 annual gross rent for a 6-bed house
- £74,692 annual gross rent for a 7-bed house
- Subject to HMO licencing and planning permission the study could be used as a 7th double bedroom and thus increase the rental income
- Potential to add more space or bedrooms by raising the London Roof. Permission has already been granted to multiple properties on the same road.
Location information
- Zone 2 - approximately 10-minute tube ride from Brixton to Oxford Circus
- The proximity to the city centre allows tenants to cycle to work
- Clapham and Brixton High Street are within walking distance and offer 2 cinemas and a large number of bars and restaurants
- Clapham Common and Brockwell Park are a short walk away
Note
Please note that Vesta has not visited this property and that all material has been provided by the vendor.
Tenancy
RENT
£55,731 p.a. / £4,644 pcm
TENANCY DEPOSIT
£4,855
TENANCY TYPE
AST
TENANCY AGREEMENT STARTED
4 months ago
TENANCY AGREEMENT ENDS
9/4/2021
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.
About Brixton, S London
Brixton is a district within the London Borough of Lambeth in South London. It is bordered by Stockwell, Clapham, Streatham, Camberwell, Tulse Hill, Balham and Herne Hill.
Brixton has very good transport links to the rest of London. The Victoria Line starts at Brixton Underground Station, taking 7 minutes to Victoria and 10 minutes to Oxford Circus. There are 25 bus routes going through Brixton leading to Marylebone, Oxford Circus, King’s Cross, Marble Arch, Elephant & Castle and Croydon. Brixton railway is on the Chatham Main Line, linking London Victoria to Dover Priory / Ramsgate.
Brixton is also very well connected via road, being located on the A203, A204 and A2217 which link it to Vauxhall Bridge. The A23 London to Brighton road also runs through the area.
Brixton is best known for its market, which began in the 1870s, where one can find African and Caribbean produce, as well as Indian and Vietnamese supermarkets and South American butchers. The market is open every day and reflects the diverse community of Brixton and the local area.
Other noteworthy places include Brixton Academy and Electric Brixton. Both are large music venues drawing a variety of artists and fans to the area. Smaller venues such as The Windmill, Jamm and Phonox are also part of London’s live music scene.
The area is great for going out too. With Brixton’s multicultural heritage reflected in the local cuisine one is spoilt for choice when it comes to food. There are also plenty of cafes and bars, old fashioned and eclectic alike. At the Ritzy Cinema one can enjoy the latest blockbusters as well as arthouse and foreign language films.
For outdoor lovers Brockwell Park is the place to be in Brixton. This large and historic park is one of Lambeth’s 12 Green Flat Award-winning parks. It includes ornamental ponds, formal flower beds, a walled ‘Old English’ herbaceous flower garden and a charming 19th century clock tower. There are a number of historic buildings inside the park, such as Brockwell Hall and the Brockwell Lido. Other amenities inside the park include tennis courts, a bowling green a BMX track and a miniature railway.
Glendall Street,
London,
Greater London,
England,
SW9 8AJ
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