Lizaveta Herman
An 84 m² three-bed flat on Maryland Street in Stratford, priced at £280,000. It comes with a balcony, a separate WC and a list of repairs.
Our model shows an 8.1% gross yield and a 13.1% IRR. Before those numbers count, you need to know why the hallway walls have cracked.
Property Overview
For SaleTorquity rates appeal at 3.2 out of 10, below our Streatham and Poplar deals at 4.5. Condition scores as poor. Water has stained the kitchen ceiling, and vertical cracks run down the hallway walls.
The numbers still hold up in year one. Cash-on-cash reaches 7.25%, the cap rate 6.03%, and DSCR sits at 1.69x.
Rent Estimates
Based on 10 comparablesOur model puts rent at £1,897 a month, or £23 per m². The range runs from £1,561 to £2,234.
The estimate looks cautious. All ten comps let for £25 per m² or more. An 81 m² two-bed on Maryland Street itself, 107 m away, lets for £2,250. Chobham Road offers the closest twin: three beds, 83 m², £2,700.
Newham licenses private landlords, so check which licence this flat needs before you let it.
Financial Projection
10-year holdOver 10 years, the model shows £232,844 in profit and a 3.11x return on your money. The 17.60% IRR includes the refurbishment. Without it, the IRR stays at 13.11%.
Those figures assume the repairs stay cosmetic. The model budgets £1,700 to repair and skim the hallway. If a surveyor finds structural movement, that figure no longer applies.
Comparable Properties
10 foundThe model found ten rentals within 820 m, with an average match of 35%. They sit 577 m away on average, in the same part of Stratford.
Ignore Forrester Way 9 at £5,500. It asks £51 per m², far above every other comp. Legacy Tower at £3,700 lets as a new-build tower flat.
Strip those two out and three-beds of 83 to 118 m² let for £2,700 to £3,600.
Renovation Analysis
8 rooms scoredThe model gives this flat 8 out of 10 for upside. A £14,820 refurbishment could lift rent by 43%, to about £2,710 a month.
Before
After
Kitchen — Complete kitchen cabinet replacement with modern shaker-style units (£7,000)
Our renovation model scores this property 8/10 for upside, projecting a 43% rent uplift after refurbishment.
- KitchenComplete kitchen cabinet replacement with modern shaker-style units£7,000
- KitchenProfessional ceiling repair, skimming, and moisture-resistant painting£1,400
- HallwayStructural plaster repair and full hallway skim£1,700
- Bedroom 3Replace damaged bedroom door and hardware£300
- BathroomInstall new bathroom side panel and box in exposed plumbing£570
- Bedroom 2 · Bedroom 3 · Primary BedroomFull internal repainting and wall preparation£3,050
- ToiletReplace toilet flooring with high-durability luxury vinyl tile (LVT)£400
- BalconyPower wash and apply concrete sealant to balcony surfaces£400
The kitchen takes £7,000 and the water-damaged ceiling £1,400. Repainting the bedrooms costs £3,050. The rest covers the hallway, a door, the bathroom panel, the WC floor and the balcony.
The uplift looks realistic. £2,710 means £32 per m², almost exactly Chobham Road's £2,700 for 83 m². The extra £810 a month would pay back the works in about 18 months.
That holds only if the leak has stopped. Find its source before you fix the ceiling. If it comes from the flat above, that owner or the freeholder may have to pay.
Strengths & Weaknesses
- Generous floor area of 84 sqm
- Private balcony with an open outlook
- Dual-aspect potential for natural light
- Separate bathroom and WC layout
- Extensive water damage on the kitchen ceiling
- Major vertical cracks in hallway walls
- Completely dated and dilapidated kitchen units
- Poor decorative state throughout
- Significant cosmetic repair required
As a buy-to-let, it deserves a viewing with a surveyor. An 8.1% gross yield and a 1.69x DSCR leave room for a void or a rate rise. The cracks decide whether those numbers survive.
Before you offer get a structural survey. Ask the managing agent about leaks that occured in the block, and check the lease length and service charges.
Hidden gems
- 84 m² and three bedrooms for £280,000 in E15
- A private balcony with an open outlook
- A separate bathroom and WC
- A rent estimate below every local comp per m²
- A post-refurb rent that matches Chobham Road
Pitfalls
- Vertical cracks in the hallway walls
- Water damage on the kitchen ceiling
- An appeal score of 3.2 out of 10
- One outlier comp at £5,500
- Licensing, lease length and service charges need checking
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