Could this be the cheapest flat in London? Priced at £99,950, this studio apartment in Brixton represents a fantastic investment opportunity for savvy investors.
With the 1% stamp duty threshold only applying to properties sold for £125,000 and above, the eventual purchaser will save a bundle by not having to pay tax. In addition, prices in Brixton have risen by between 25% and 30% since the start of the year and Sales Manager, Katherine Wells, advises that they are set to rise further, eventually eclipsing property values for neighbouring area, Clapham. Good capital growth on this property therefore looks likely.
Although the flat requires modernising, once done, it will net in the region of £1,000 per month in rental income, equating to a rental yield of more than 10% which is currently unheard of in London. The only downside could be that the property is still on its original lease, drawn up in 1934, which means that there are now only 56 years remaining. To extend the lease would cost in the region of £23,000 plus solicitors fees.
Katherine Wells comments: “It is incredibly rare to find properties priced below £100,000 in London and even rarer still to find them in sought after areas like South West London. Many studio and small one bed flats in the area are now selling for in excess of £250,000 in the current market and we expect that there will be a huge amount of interest when it launches to the market next week.”
Because the property has a rather low lease which needs extending, banks are unwilling to lend on it and so it is available to cash buyers only.
For more information about property prices in Brixton, read this blog.