London auctions: buy-to-let properties going under the hammer

We take our pick of buy-to-let auction properties for London landlords, including a rare-to-market freehold block of 54 flats and 25 garages.
Southgate, N14 4DS
Location:
Flats 1-54, Gwalior House, Avenue Road, Southgate, London N14 4DS
Guide Price: £8 Million
Auction House: Barnett Ross 020 8492 9449, barnettross.co.uk
When: 13 May 2014

For a prestigious Buy-to-Let they don’t really come much bigger than this: three unbroken residential blocks comprising 54 two-bedroom flats and 25 garages in Southgate.

This size of lot is incredibly rare in London and while the guide price of £8 million may sound like a lottery win, it’s actually very good value considering flats in the area sell for around £250,000 each. Working out the sums: 54 flats at £250,000 a piece generates a total end value of £13.5 million for the flats alone – and that's excluding the 25 garages and freehold interest.

Currently producing £471,546 per annum, the lot includes 39 flats let on Assured Shorthold Tenancies, 12 let on Regulated Tenancies, three Vacant plus 25 garages. Any canny investor would be wise to check current rental rates as it's likely upward rent reviews will also be due. This means there’s even more money to be made on this Buy-to-Let lot.


  
chandos-600.jpg


South Norwood, SE25 4JF
Location:
Chandos Mansions, Albert Road, South Norwood, SE25 4JF
Guide Price: £120,000+
Auction House: Auction House London 0207 625 9007, auctionhouselondon
When: 24 April 2014

Guided below stamp duty in London would normally imply low expectations but this three bedroom flat at £120,000 is a find. There is an added advantage: the flat is currently rented at £900 pcm (which sounds low for the area) and bought anywhere close to guide, would produce an annual yield of nine per cent.

Unfortunately, the 67 year lease is going to put off quite a few banks from lending and extending the lease is going to require an additional premium. However, given values of neighbouring flats are in the region of £190,000 it looks like there is a potential for profit.


fulham-600_0.jpg


Parsons Green, SW6 5SF
Location: Fulham Road, Parsons Green, SW6 5SF
Guide Price: £975,000+
Auction House: Auction House London 0207 625 9007 auctionhouselondon.co.uk
When: 24 April 2014

Splashing out close to £1 million for a Buy-to-Let may not be for everyone but the price of this lot is a bargain.
 
This property is currently three flats (two one-bedroom flats and one four-bedroom) and is located in the sought after area of Parson’s Green. Freeholds are rare in this part of town, with entire houses regularly fetching closer to £2 million. The flats are all currently rented and produce an annual income of £42,370. Admittedly, that’s quite a low yield of 4% but with the astronomic capital growth of the area, this property could see you sitting very pretty indeed.  


woolwich-600_1.jpg


Greenwich, SE10 0RN
Location: 241 Woolwich Road, Greenwich, SE10 0RN
Guide Price: £220,000+
Auction House: Barnard Marcus 020 8741 9990, barnardmarcusauctions.co.uk
When: 14 April 2014

For a bargain buy-to-let in an up-and-coming part of town, this three-bedroom house in Greenwich is guided at just £220,000. Currently rented at £1,200 pcm, this property has room for improvement on both the rental and capital returns. Rents for comparable properties in the area fetch around £1,500pcm with re-sale values around £300,000.

The property is well located for transport links – albeit it is close to some very busy roads. Trains to central London take about 15-20 minutes and there are numerous bus routes. However with the O2, Charlton Park and Greenwich town centre just moments away – you won’t miss out on the fun by staying local.

edmonton-600_0.jpg


Edmonton, N18 2TP
Location:
 16 Joyce Avenue, Edmonton, N18 2TP
Guide Price: £110,000
Auction House: Barnard Marcus 020 8741 9990, barnardmarcusauctions
When: 14 April 2014

For big returns, this four-bedroom split-level flat guided at just £110,000 will tempt many cost-conscious investors. Currently let at £1,690 pcm, buying at guide price will give a yield of 18 per cent. Ex-council isn't everyone’s idea of an ideal home but for regular income and a cheap Buy-to-Let this is it. With 764 sq ft of living space, the property has a long lease and low ground rent of £10 per year. Service charges are around £975 per annum – but even after allowing for this expense – the sums stack in the investor's favour.
 
Follow Samantha Collett on twitter: @whatsamsawtoday
 

Follow us on Twitter @HomesProperty and Facebook

Comments