Two locks with one key

19th Jan 2022

Currently, we are focusing on closing a deal in West London.  It is an end of terrace residential property with a plot next to it.


The angle here is to gain planning to build another property next door, making the current property a mid-terrace.


This sort of opportunity comes up time to time, the opportunity is glaringly obvious.  The last time it appeared was in a lesser known auction, a one man band type of firm.  The property was a corner plot with plenty of land wrapped around it; it ended up going well over the guide.  I met someone I knew in the auction, predictably there for the same lot; the price it went for was insanely high.


When this happens, you’re left scratching your head, thinking if you have missed something.  It seemed someone bought it to simply keep their builders busy.  As soon as this lot was over, a large chunk of the room emptied.


This opportunity luckily is not on the market, neither will it go into auction.  The price has been agreed and the contract is with our solicitors.


The property is in an area where there is a concentration of Asians, typically this means if this was to go on the open market, it would attract multiple bids, and possibly go for more than it’s even worth.


In terms of location this property is only a few minutes walk from a station, which in turn gets to Waterloo in about 40 minutes.


The property itself is below the line of all the other rows of houses, and has only two stories; all the others have three.  Therefore, planning to go up and add another floor does not seem to be contentious.


We have it from good authority that the planning possibility is favourable; however, it is still prudent to have an alternative plan.


One of the options, as well as going upwards on the existing property is to extend to the side, so you would have three floors butting on to the side of the house.  Given its proximity to the station, this large extended property may serve well as an HMO.  One can do six rooms, without the need for planning.


These could all be ensuite, and potentially with kitchenettes, which will likely attract a similar rental as a studio.  There are plenty of lenders who would refinance this once developed.  Therefore, you could have most of your money out of the deal, and a solid income coming in.  The void periods on this property, given its proximity to the station are likely to be very low.  The deal is currently looking for an investor, though it will not hang around for too long.  Do get in touch if you are interested.


Suresh Vagjiani

Suresh Vagjiani
Suresh Vagjiani
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