Property Overview
- Type: Two-bed semi-detached maisonette
- Accommodation: 2 bedrooms, one family bathroom
- Floor area: Approx. 586 sq ft
- Tenure: Leasehold — 199 years from 1 January 1987
- Ground Rent: £90 per annum
- Service Charge: £840 per annum
- Parking: Residents’ parking & allocated parking bays
- Tenancy: Tenants in situ, on a rolling contract
- Current Rent: £1,400 per calendar month
Asking Price & Financials
- Asking Price: £260,000
- Annual Rental Income: £16,800 p.a.
Yield & Return Analysis
| Metric |
Value |
| Gross Yield (on asking price) |
6.46% |
| Net Income (after Ground Rent & Service Charge) |
£15,870 |
| Adjusted Yield (net of ground & service charge) |
6.10% |
These yields are attractive for this location, particularly given the low ground rent and modest service charge, plus a relatively long lease remaining.
Key Selling Points for Investors
- Tenants in situ: Generates immediate income; no void period to worry about.
- Stable Costs: Low ground rent and service charge helps protect net yield. The lease length (since 1987, 199 years) provides strong tenure security.
- Price positioning: At £260,000, the asking price gives a good entry point relative to typical Ottershaw / KT16 sales.
- Potential for capital appreciation: Ottershaw and the broader Chertsey area have shown consistent house price growth. (Please take a look below for local trends.)
- Location & desirability: Quiet, pleasant area; resident parking & parking bays make lettings more attractive.
Local Market Context & Appreciation
- Average house prices in Ottershaw are approximately £556,000–£590,000, depending on property type (semi-detached, detached, etc).
- Year-on-year growth in Ottershaw has been around 3 % to 4 % for overall property values.
- Over the past decade, properties in the wider KT16 area have appreciated by approximately 30-35 % plus, depending on type and location.
- Rental values in this postcode area (KT16, Ottershaw / Chertsey) show that average rents for similar-sized properties are in line or slightly below the current rent, which implies room for rent growth. For example, in KT16 0JU, average rents are around £1,409 pcm.
Local Amenities & Location Strengths
- Ottershaw is well regarded as a quiet, leafy village area with attractive surroundings but still well-connected.
- Transport & Commuting:
• While Ottershaw does not have its own train station, nearby stations (e.g. Chertsey, Addlestone) provide regular services into London.
• Road links are strong: access to the M25, M3, etc gives good connections around Surrey / London, and / South East.
- Amenities & Quality of Life: local shops, schools, green spaces. Suitable for tenants looking for a balance: quieter than inner London, but not too remote.
Investment Upside
- Potential for capital growth if sales prices in Ottershaw and KT16 continue the trend of increasing by 3-4% per annum.
- Possible rent increases over time: the current rent is competitive; inflation, demand, and rising local rents likely allow upward adjustments (especially at contract renewals).
- Strong appeal for long-term investors valuing yield + security + steady appreciation rather than speculative short-term gains.
Considerations
- Leasehold property: need to monitor lease terms, any upward ground rent reviews (though the current ground rent is modest) and service charge responsibilities.
- Tenancy is on a rolling contract: while this provides flexibility, it also carries the risk of turnover. However, the current rent offers good cover.
- Ongoing repair/maintenance costs, insurance, etc. would need to be managed; not included in the service charge or ground rent.
Why would you buy here instead of elsewhere?
- Entry price (£260,000) gives immediate yield (6.5% gross) that is stronger than many comparable properties in more premium/separate parts of KT16 or Surrey.
- Good mix of stability (high demand, desirable area) and yield: many properties with higher value have lower yields.
- Dual benefits: rental income now + capital growth over 5-10+ years.
Summary
For the investor seeking:
- Immediate income from a tenant in situ.
- Strong yield (6-6.5 % gross).
- A long lease.
- Low ongoing charges and ground rents.
- Location with proven capital growth.
Get in touch with the team
