Rankdesk has valued

Knightsbridge, SW1X
£3,800,000

Desktop Analysis by Rini Shrivastava on Apr 15 2011
RankdeskID: 5919

 
Rankdesk's Investment Rating combines the net yield of a property with a projected 5-year capital appreciation. A score from 1 to 5 is given to the property depending on how it's net yield and capital appreciation compare with the values of other London properties rated by Rankdesk in 2011.
3(out of 5)
Based on British Housing Quality Standards, Rankdesk's Quality Rating covers dozens of property and neighbourhood parameters such as Proximity to Local Ammenities, Property Layout, Size & Finish. Read our Methodology for a full list of parameters.​
4(out of 5)
Chesterton Humberts

Photos, Maps & Plan
Bedroom x3
Bathroom x2
Third
Area 1,841 ft2
Leasehold 71 years
Type Flat
 

Features

Porter
 
Lift
 
En-Suite
 
 

This rating was prepared by Rankdesk analysts who based their desktop assessment of the property on descriptions provided by partner estate agents, on in-house rental price and capital appreciation estimates and on monthly neighbourhood intelligence visits. Ratings are the collective work of Rankdesk and no individual, or group of individuals, is solely responsible for a rating. The assessment was not based on a physical site visit of the actual property. We assumed that the descriptions provided by the estate agent complied to the Property Misdescriptions Act (1991). Nothing within this report shall be deemed to constitute any valuation, surveying, financial or other advice or a recommendation to purchase any property. All information that rankdesk provides in this report is for general information purposes only. Independent professional advice should be obtained before you purchase any property rated by Rankdesk. This property was analysed on Apr 15 2011. Any information relating to this property may have changed since the date of assessment.

How does the asking price and rent compare
to neighbourhood averages?

 
  The property Neighbourhood average
Averages are based on the values of similar properties in the same postcode and where available in the same neighbourhood
 Difference  
Price £3,800,000 £3,766,667 +1%
Price per area £2,064 / sq. ft. £1,826 / sq. ft. +13%
Rent per week £1,500 £1,833 -18%
Gross yield
The Gross Yield is calculated by dividing the total sum of rent money received in Year 1 by the Asking Price
 1.8% 3.07% -42%

How does the property quality compare
to neighbourhood averages?

Property Neighbourhood Scorecard
The Overall Quality Rating is based on a weighted average of the quality parameters listed below

Overall quality 		3.9 4.2
 
The Size rating compares the property's floor area with minimum standard requirements (e.g minimum area required for a studio property is 35 sq.m)

Size 		5.0 4.4
Number of bedspaces: 5
Floor area (sq.m): > 95

Finish 		5.0 4.0
Decorative condition: Excellent
Floor finishing in living room: Hard Surface
The Layout rating is based on the quality of storage facilities; size of living room and bedrooms; general accessibility; extra bedspaces; ratio of en-suite to non en-suite bathrooms. See our Methodology for the full list of parameters

Layout 		3.6 3.4
Living room: More than one
Approximate size of living room: Double (up to 40 sq.m)
Kitchen: Separate eat in
Storage in kitchen: Sufficient
Dining: Separate
Long or badly planned corridors: Yes
Total bedrooms: 3
Space for baby cot in master bedroom: Yes
Fitted wardrobes in master bedroom: Yes
General storage facilities: Insufficient
Total bathroom(s): 2
En-suite bathroom(s): 1
Non en-suite bathroom(s): Yes
Bathroom(s) with shower only: More than one
Bathroom(s) with shower cubical and bathtub: None
Separate WC: Yes
Ease of access in at least one bathroom: Good
Living room and kitchen close to each other: No
Living room and entrance close to each other: Yes
Entrance lobby prior to living room: Yes
Living / Bedroom(s) adjacent to each other: No
The Services rating looks at property features such as garden, patio, gym facilities, porter & parking. Please note that some of these feautures may be shared with other residents

Services 		1.3 1.8
High ceiling: No
Fireplace: Yes
Porter: Yes
Parking: No
Conservatory: No
Leisure facilities (gym, swimming pool): No
Full length window(s): No
Skylight: No
Terrace / Balcony: No
Garden(s): No
The Orientation Rating is based on the number and orientation of the aspects of the property. This has an impact on the brightness of the property. Rankdesk has not accounted for obstruction from neighbouring buildings

Orientation 		2.4 2.7
Number of aspects: 1
Living room window: South
Bedroom 1 window: East
Bedroom 2 window: West
Bedroom 3 window: South West
Bathroom(s) with window: More than one
Kitchen window: Yes
The Eco Rating takes into account the energy efficiency and the home's CO2 emmissions based on the EPC report of the property

Eco 		2.9 2.2
Energy efficiency: D
Environmental rating: D
The Proximity Rating looks at the distance between the property and local ammenities such as well performing state schools, general medical practices and supermarkets

Proximity 		3.9 4.2
Proximity to nearest underground station: 0 minutes - 7.5 minutes
Proximity to open space: 0 minutes - 7.5 minutes
Proximity to convenience stores: 7.5 minutes - 15 minutes
Proximity to general medical practice: 0 minutes - 7.5 minutes
Proximity to band A or band B primary schools (KS2 VA measure) (100.9): Over 15 minutes
Property above shops: No
Property adjacent to derelict land or infrastructure (e.g. railway, motorway): No
The Noise Rating looks at the proximity of the property to major roads and railways

Noise 		5.0 4.6
Occasional noise source within 150 metres: No
Is the property next to an A road or railway?: No

What is the neighbourhood like?

Rankdesk analysts visit neighbourhoods to map any new developments and regeneration schemes that may impact the supply and demand for residential property in the area

Intelligence

The nearby Number 1 Hyde Park is a prime residential development aimed at high net worth individuals. Set to be completed in 2011, it has already achieved some of London's highest prices per square foot. Planning Applications have been recently received for the redevelopment of 87 bedroom hotel on Knightsbridge Road, with a restaurant and residential apartments.

The Neighbourhood Classes are based on average price brackets of properties in the neighbourhood

Neighbourhood class

  • Super Prime
  • Prime
  • Central
  • Peripheral

Proximity

 

How is the neighbourhood performing?

Neighburhood average London average

Supply

29(59)
Approximate number of 3 bedroom properties for sale in this neighbourhood

Demand

99(93)
Number of days it takes to sell a Property in this neighbourhood

Asking / Sold

97(94)
Percentage of Asking to Sold Price
 
 

How to use this page: Look at the first section to determine whether the property is underpriced or overpriced compared to the neighbourhood average. All prices are based on asking prices. Use the property quality diagram to determine if this price and rent difference is warranted. A buyer would typically expect that a property that is priced above the neighbourhood average would also be of better quality compared to neighbouring properties. Finally look at the supply and demand values in the neighbourhood. Typically the price per square foot of a property is higher when there is low property supply and high demand in the area. Read our Methodology for further explanation on supply & demand values.

How does the Property Compare to Similar Properties?

RECENTLY IN THE MARKET

Compared to
the property
 
Quality: 4
Investment: 3
Better
Same
Worst
Knightsbridge, SW1X
£3,800,000
  • Flat
  • 3 beds
  • 2 baths
£ / FT2
£2,064.10 / FT2
£191.76 M2
Floor Area
1,841.00 / FT2
171.03 M2
Tenure / Lease
Leasehold: 71 YRS
Floor level
Third
Finish
Excellent
Outdoor Space
No
Parking
No
Storage
Insufficient
Porter
Yes
Quality score
3.94
Weekly Rent
£1,500
Gross Yield
1.78%

How to use this page: The table above compares the features of the rated property (listed in column 1) with the features of one or more other properties (listed in columns 2 and above). The more orange dots that are displayed on the table, the better your property compares to the comparables. Copyrighted material: Some of the information above is © Crown copyright 2011 Land Registry © Crown copyright material is reproduced with the permission of Land Registry under delegated authority from the Controller of HMSO. Permitted Use. Viewers of this Information are granted permission to access this Crown copyright material and to dowload it onto electronic, magnetic, optical or similar storage media provided that such activites are for private research, study or in-house use only. Any other use of the material requires the formal written permission of Land Registry which can be requested from us and is subject to an additional licence and associated charge.


Buying the property

IN: £4,085,000
Cash
100%
 
Buy £3,800,000
Costs
£285,000

Cashflow
Income vs Expenses

£38,712
2013
Gross Annual Income: £72,540
Expenses: £33,828
£40,093
2014
Gross Annual Income: £75,804
Expenses: £35,712
£41,538
2015
Gross Annual Income: £79,215
Expenses: £37,678
£43,051
2016
Gross Annual Income: £82,780
Expenses: £39,730
£44,634
2017
Gross Annual Income: £86,505
Expenses: £41,872
Income
Fixed & variable expenses
Variable expenses include Letting and Management Fees as well as service charges. Fixed expenses include Ground Rent, Agreement, Inventory, Gas Safety Check and other Incidental Costs
Interest payments
Taxes
Income Tax will automatically be applied to your rental income based on current UK tax rates irrespective if you are a UK or a foreign resident

Selling the Property

Sell £4,650,337
Mortgage Repayment
Sales Cost
Capital Gains Tax
Cash
 
Out: £4,448,892
This is the offer price plus any associated purchase costs such as legal fees and stamp duty

Gross Purchase Price £4,085,000

Offer price: £3,800,000
By default the Offer Price is assumed to be the Asking Price
Costs: stamp duty & legal fees: (7.5%) £285,000
This is based on the days in the year that the property will remain empty.
Please consult a mortgage advisor before customising this section

Mortgage £0

Deposit / cash: £4,085,000 (100.0%)
Mortgage: 0.0%
Loan: Interest only
Amortisation is the time for which a mortgage is drawn for
Interest rate: 5% (0)
Rankdesk's gross yield takes into consideration a void period where your property will be vacant of tenants. This value can be customised by clicking on the blue arrow.

Gross Yield 1.8%

Weekly rent: £1,500
Yearly increase: 4.5%
Yearly void period: 7.0%
This is based on the days in the year that the property will remain empty
The Net Yield is calculated by taking the total rental income in the first year and subtracting rental voids, service charges, ground rent, rental and management fees and other incidental costs which include gas safety checks and rental agreement fees

Net Yield 1.2%

Lease extension: £0 in 2013
The amount paid by the leaseholder to the freeholder to extend the period of the lease beyond the original term
Refurbishment: £0 in 2013
You can insert a refurbishment price that will give you an estimate for the complete renovation of the property. £150 per square foot would typically result in a property with an 'Exclusive' condition
Approx annual service charge: £10,723
These figures are approximate and will need to be confirmed with the vendor
Approx annual ground rent: £200
These figures are approximate and will need to be confirmed with the vendo
Letting & management fees (15%): £13,057
Incidental yearly costs: £0
This compares the ratio of expenses such as management costs and service charges to the rental income. The lower the value, the better your income
Average expenses to income: 34.3%
The IRR is the return received on an investment consisting of income and payments that occur at regular intervals. A property is a good investment proposition if its IRR is greater than the rate of return that an investor could earn in alternative investments

IRR 3.2%

5 year capital growth: 22.4%
Rankdesk assumes a uniform 5 year London capital appreciation projection rate for all properties, which is revised quarterly. This rate is reduced if the property has a lease of 100 years or less at the time of purchase
Gross sale price: £4,650,337
Sales cost: £139,510
Sales Costs include solicitor and estate agent fees.
Net sale price: £4,510,827
Debt repayment: £0
Capital gains: £375,227
This is the amount by which the property has increased in value since the purchase date. Unless exempt, you are liable to pay Capital Gains Tax on this amount as set out below. Rankdesk assumes that only owner occupiers who will use this as their primary residence or overseas investors who have not lived in the UK over the last 5 years are exempt from paying capital gains
Capital gains tax: £106,569
If you are liable to pay Capital Gains Tax, then the following rates of 18% or 28% apply dependant on your income. Rankdesk assumes that your income is based only from the revenue generated from the property. No other personal income assumptions have been taken into consideration
Net present value: -£543,336
The NPV measures the excess or shortfall of cash flows, in present value terms. It is based on a discount rate, which takes into account risks in investing in residential property such as rental loss and price fluctuations
 

How to use this page: The diagrams in this page show 3 key stages in the lifecycle of the property. Stage 1 is when you buy the property and invest a specific amount indicated by 'IN'. Stage 2 shows the income (for buy to let investors), expenses and cash flow for each of the 5 years of ownership. Stage 3 is when you sell the property and go away with a specific gain or loss indicated by 'OUT'.