We acquired a first floor flat of approximately 441 square feet, located in Hanwell. At the time of acquisition, Hanwell was an upcoming area with relatively cheap property just on the doorstep of Ealing, which boosted with high property prices. We saw the potential in Hanwell location and predicted that the property prices should double in the next few years. Because of that we decided to buy a one bedroom flat and keep it for capital appreciation while receiving rental income at the same time. At the time of acquisition, the property was run down and needed uplift. It also had a short lease of 78 years, which enable us to negotiate a good discount on the purchase price. The flat was completely refurbished to high standards and the space re-designed to create a stunning home for our future tenant.
In this particular project we spotted an opportunity for the right location and correctly predicted the growth of the area. This project once again proved to us that location is the key. We added value to the property by extending the lease and performing a high standard refurbishment. We did not have any missed rent for five years and were lucky to have the same tenant since we bought the property.
|Lease Extension Costs:||£23,000|
|Total Project Costs:||£205,000|