Starting Bid
£200,000
guide price at auction
Risk Rating
MEDIUM
no legal pack reviewed yet
Auction Date
TBC
contact agent urgently
Legal Pack
Not Found
request from Pattinson
Property Type
2 Bed Flat (Leasehold)
Lease Remaining
~91 years
Service Charge
£3,600 / year
Gross Yield (at starting bid)
12.6%
£25,200 annual rent ÷ £200,000
Net Yield (after service charge)
10.8%
£21,600 net ÷ £200,000
Comparable Flat Average
£363k
6 comparables, 0.05–0.13 miles
Potential Upside
+£163k
vs comparable average if in good condition
Title
Leasehold flat with approximately 91 years remaining — above the 80-year threshold required by most mortgage lenders and above the 70-year threshold typically required post-mortgage term. Annual service charge £3,600. Ground rent terms, title encumbrances, covenants, and any restrictions on subletting are unknown — legal pack not yet obtained.
Special Conditions
No legal pack available to review. Starting bid of £200,000 is 33–55% below comparable leasehold flat transactions in E1 2EX. This unusual pricing warrants investigation — possible causes include: building defect (e.g. cladding), service charge arrears, major works planned (Section 20), ground rent escalation clause, or simply a motivated seller prepared to accept below market value for speed.
Searches
No searches available — legal pack not obtained. Local authority, drainage, and environmental searches not reviewed. The property is on Commercial Road (A13), a major arterial road — potential noise and air quality considerations worth noting for future lettability.
Tenancy
Currently let at £2,100 PCM. Tenancy type, notice period, and break clause details are unknown — the legal pack should confirm whether this is an AST or periodic tenancy, and whether the sale is with vacant possession or with sitting tenant. Chain-free confirmed. Gross yield at starting bid: 12.6%. Net yield after service charge: 10.8%.
Risk Rating
⚠ MEDIUM
The starting bid of £200,000 is dramatically below comparable 2-bed leasehold flats in E1 2EX, which have transacted for £290,000–£443,000 in the last 18 months — a potential uplift of £90,000–£243,000. The 12.6% gross yield at starting price is exceptional for central London and warrants serious attention. However, without a legal pack it is impossible to assess service charge arrears, cladding status (the building sits in a high-density corridor), ground rent terms, or any subletting restrictions. The combination of unusual pricing and unavailable legal pack is a yellow flag — not a deal-breaker — but Medium risk is the appropriate rating until the pack is reviewed and a survey conducted.
Red Flags — Solicitor Attention Required
- No legal pack available — request from Pattinson urgently before bidding
- Starting bid 33–55% below comparable sold prices — investigate root cause
- Service charge £3,600/year — verify no major works planned (Section 20 notice)
- Auction date TBC — monitor closely, short notice is common with online auctions
- Tenancy terms unknown — confirm whether vacant possession offered or sold with sitting tenant
- Building age and cladding status unknown — request EWS1 form if applicable
Comparable Transactions — E1 2EX (within 0.15 miles)
| Address |
Sold Price |
Date |
Type |
Tenure |
Distance |
Flat 3, 186a Commercial Road E1 2JY |
£290,000 |
Jan 2025 |
Flat |
Leasehold |
0.05 mi |
Flat 2, 186a Commercial Road E1 2JY |
£320,000 |
Feb 2025 |
Flat |
Leasehold |
0.05 mi |
Flat 8, Joscoyne House, Philpot Street E1 2JE |
£442,500 |
Aug 2025 |
2 bed Flat |
Leasehold |
0.10 mi |
Flat 7, 21 Hainton Close E1 2QZ |
£425,000 |
May 2025 |
2 bed Flat |
Leasehold |
0.11 mi |
Flat 4, Porchester House, Philpot Street E1 2JF |
£300,000 |
Sep 2025 |
2 bed Flat |
Leasehold |
0.12 mi |
Flat 2, Norton House, Bigland Street E1 2PL |
£400,000 |
Jan 2025 |
Flat |
Leasehold |
0.13 mi |
Important Caveats
- This is a screening tool, not legal advice
- Instruct a solicitor before bidding — this lot is rated MEDIUM risk
- Legal pack analysis is based on available data only — always verify the pack is complete before bidding
- Always attend or arrange a building survey before bidding on any auction lot
What I typed into Claude Code
Run auction due diligence on property ID O18789077
/auction-review O18789077