Would you buy a property not knowing if it would be there in five years? The resounding answer for many would likely be: No! But investors are flocking to the latest opportunity being offered by Network Auctions in their 9th February property auction.
Flat 28 Kelson House, Stewart Street, London, E14 3JQ is a well-presented two-bedroom, fifth floor apartment, guided at £140,000-£150,000. Its auction guide is a fraction of its estimated £250,000 retail price. The property is conveniently located 0.3 miles from Crossharbour and a short walk to Canary Wharf Station. It also benefits from a leasehold of 125 years from 11/1988 (90 years unexpired).
The catch? The property forms part of the Samuda Estate – a One Housing development where they are currently working with residents to consider the possibility of regeneration. If they choose not to renovate, the council will put a Compulsory Purchase Order on the property.
‘There’s serious interest’ says Toby Limbrick, auctioneer at Network Auctions. ‘Investors have done the maths and can see in its current move-in condition they can rent it for £14,400 per annum. That means they can collect rent while the housing association decide what they’re doing.’
‘There are some projections online for the refurbishment of the estate at £5 million, that breaks down to roughly £45,000 per flat. If the regeneration was to happen and the estate improves, then the flat’s value will also increase. If they choose not to go down that route and put a Compulsory Purchase Order on the property, the investor will realise their gains with a ready-made buyer.’
‘As regeneration opportunities go, Kelson House ticks the boxes – but it’s a gamble.’
Flat 28 Kelson House, Stewart Street, London, E14 3JQ will be sold in an online property auction on 9th February by Network Auctions. For more information www.networkauctions.co.uk