- Current annual rental income of £13,752. Market rate around £18,000 per annum +
- Current tenants are on a rolling contract +
- Potential to bring the gross yield up from 5.15% to 7.7% +
- £230,000 asking price is below market rate asking price for the Barking area +
- Strong transport links in the area +
- EPC rating: C +
Fortune Court, Stern Close, Barking IG11 0XZ
Asking Price: £230,000
Ground-floor 2-bed flat * Allocated parking * Long lease (98 years) * EPC C
Property Overview
An excellent investment opportunity - a spacious 2-bedroom ground-floor flat located in a quiet, low-rise block within a popular residential area of Barking. The property benefits from allocated parking, a long lease, and a current council-backed tenancy providing guaranteed rent.
Key Details:
Asking Price: £230,000
Lease: 98 years remaining
Service Charge: £1,804 p.a.
Ground Rent: £110 p.a.
EPC Rating: C
Allocated Parking Space
Current Rent: £1,146 pcm (guaranteed)
Potential Rent: £1,500 pcm
Tenancy: Rolling tenancy commenced April 2023, with a rent guarantee insurance policy
Condition: Would benefit from light refurbishment or "spruce-up"
Purchase History: Bought in 2017 for £216,000, re-mortgaged in 2020 at £245,000
Investment Returns & Yield Calculations
Current Rental Scenario
Annual Rent (Current): £13,752
Annual Outgoings: £1,804 (service charge) + £110 (ground rent) = £1,914
Net Income: £11,838
Gross Yield: £13,752 / £230,000 = 5.98 %
Net Yield (after outgoings): £11,838 / £230,000 = 5.15 %
Potential Rental Scenario (Uplift to £1,500 pcm)
Annual Rent (Potential): £18,000
Net Income: £16,086
Gross Yield: 7.8%
Net Yield: 7.0%
Summary:
Even at the current rent, the property delivers a solid yield for London. Once refurbished and rent increased to market levels, yields approach 7.7% gross - a strong return for a property under £250k.
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