In June, The Steeple Times featured a one-bedroom Kings Road, Chelsea apartment that was offered for £140,000 at auction and eventually went for just £138,000. That property’s price seemed like a bargain basement, but now we can go one better and share news of a two-bedroom property offered for just £10,995.
Marketed at a price lower than the cost of a brand new Vauxhall Corsa and situated in Dilke Street, Old Chelsea, the flat currently on the website OnTheMarket.com does have a catch – the lease term is just five years and there are additional costs attached.
Promoted by “wealth building” firm Omny Group, the particulars list a financial breakdown of the returns that could supposedly be generated from the property. They read as follows:
Two stories to keep beside you
The £5,000 per square foot fixer-upper flat
Could part of the former home of George Peabody in London be Britain’s most expensive fixer-upper flat?
Blown Out Cheap In Chelsea
First floor flat in Redcliffe Gardens, Chelsea for sale for just £150,000 in spite of having a 61 year lease; the street was made famous in a song by The Beatles A flat in Redcliffe Gardens, Chelsea, SW10, the street where the man “who blew his mind out in a car” in the lyrics of […]
Figures based on an estimated annual average occupancy of 75% pcm and annual projected average daily rate of £200
Projected monthly figures:
Projected rental income = £4,550
Projected management costs (15% of rental income) = £682
Monthly lease payment = £2,225
Projected bills (a variable cost based on the property in terms of utility bills i.e council tax, water, electric, gas etc.) = £400
Potential average NET monthly income = £1,243
Potential average NET annual income = £14,196
Potential average NET income over 5 year term = £74,580
*Disclaimer – There is no option to purchase the property at the end of the term. Tenants may choose to self occupy this apartment although Omny Group would advise that this property is set up for and used as serviced accommodation utilising the corporate lets and/or the short lets model. The figures provided in the financial breakdown are potential or projected figures that have been sourced from the Global Serviced Apartments Industry Report 2019/2020; however Omny Group are not able to offer any performance guarantees.*
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Good to see a local story about Kensington and Chelsea again. It’s been a while.
Will London ever get rid of that whole lease thing? Outrageous…well, IMO.