LOT 16

22 Merchland Road, London, SE9 2BH

A FREEHOLD SUPPORTED LIVING INVESTMENT PROPERTY CURRENTLY PRODUCING £52,655 PER ANNUM

Guide price: £795,000 PLUS*

Auction Date

Thursday, 28th October 2021 12:00pm

The property is a semi detached, 4 bedroom dormer bungalow, arranged over ground and one upper floor. The property is let by way of a 25 year lease (20 years with a landlord only option to extend for a further 5 years) from April 2021 at an annual rent of £52,665 and annual CPI linked rent reviews. Located in a quiet cul-de-sac in the South Eltham area of London, the property has undergone extensive refurbishment in order to make it suitable for supported living use. The tenant, Independent Housing (UK) Limited, a registered housing charity that currently supports in excess of 200 tenants throughout the UK

Tenure

Freehold

Accommodation

Ground Floor: Entrance Hall, Dining room, Kitchen, Staff room, 3 bedrooms, bathroom
First Floor: Bedroom, Bathroom, Storage
External Rear garden and forecourt parking

Tenancy Details

Specialised supported housing is defined in the Social Housing Rents (Exceptions and Miscellaneous Provisions) Regulations 2016 as a type of housing specifically designed or adapted for people who require specialised services. The accommodation must be provided by a registered provider such as a local authority or a housing association (licensed and regulated by a well-defined system of governance either by the Regulator for Social Housing or the Charity Commission).

The completed asset is leased to a housing association on a 25 year lease, on fully repairing and insuring terms, with periodic index-linked rent uplifts.

The housing association grants assured shorthold tenancies to the relevant individuals, with the rent paid for entirely through an enhanced housing benefit, which is not subject to caps as it meets the relevant rent regulation to be classified as ‘exempt accommodation’. This exemption reflects the absence of public subsidy, the specific needs of the individuals being housed in terms of location and adaptations as well as different real estate acquisition and development costs relating to supported living assets. The rents are government backed, with the cost of managing and maintaining the supported living units entirely paid to the housing association through a housing benefit service charge.

Note

Auction Surveyor: Andrew Brown
Contact: 0208 509 4470

Status

Withdrawn

* The Notice to Bidders, which can also be seen on the inside front cover of the hard copy catalogue, includes a definition of Guide Price [section #17] Note that in addition to the purchase price there is a buyer’s administration fee [section #13] and there may be additional non-optional fixed or variable fees and costs [section #8]. To establish the full cost of purchasing a property, please inspect the legal documentation/special conditions. Please also check strettons.co.uk for updates.