Investment Opportunity – 22 Mercury House, Epsom, KT17 1SN
Property at a Glance
- Type: One-bedroom, second-floor apartment (leasehold)
- Tenure: Approx. 986 years remaining – effectively long leasehold
- Bedrooms: 1 double bedroom with fitted wardrobes
- Living: Open-plan kitchen & living room; good-sized bathroom (shower over bath)
- Parking: One allocated parking space (a valuable plus in the area)
- Age & Condition: Built in 2011; modern, well-maintained
- Current Tenancy: Tenant in situ since 31 March 2021
- Last Year’s Charges: Service charge £660.22 (for last 6 months), Ground Rent £400 per annum
Revenue & Yield Analysis
Assuming the asking price of £250,000:
- Gross Annual Rent: £14,400
- Gross Yield: 5.76%
- Estimated Net Annual Income: £12,680
- Net Yield: 5.07%Summary: At the £250,000 asking price, the apartment offers a strong gross rental yield of 5.8% and a net yield of 5.1% a very attractive return relative to many similar properties in the KT17 area.
- Summary: At the £250,000 asking price, the apartment offers a strong gross rental yield of 5.8% and a net yield of 5.1% a very attractive return relative to many similar properties in the KT17 area.
Local Market Comparison – Value and Context
Recent market data for one-bedroom flats in the KT17 (Ewell / Epsom / Ewell Village) area illustrates current asking prices typically ranging from £290,000 to around £325,000, with many modern, well-appointed flats (often with parking or premium finishes) clustering in the £305,000–£325,000 bracket.
For example:
- Comparable sold properties within a ½ mile radius – CLICK HERE
- Comparable rental properties within a ¼ mile radius showing scope for an increase on return – CLICK HERE
Implication: By pricing this apartment at £250,000, the offering is significantly below comparable recent listings – offering potential for capital appreciation for buyers, especially once the property is refurbished, re-let, or held long-term.
Why This Is a Stand-Out Investment
- Above-average yield: With a sub-£250k entry point, the flat promises gross yield 5.8% – well above typical net yields of many comparable flats priced higher.
- Long leasehold: With nearly 1,000 years remaining on the lease, this investment carries minimal lease-related risk compared with shorter-lease properties.
- Low overheads: Service charge and ground rent are modest (especially compared to many newer/high-rise developments), helping preserve net return.
- Desirable location: The property sits in the heart of Ewell Village – a well-regarded residential village-style area with shops, restaurants and excellent transport links, making it popular with commuters and professionals.
- Parking included: The allocated parking space adds a real premium – many flats in KT17 do not offer this, and it enhances both rental appeal and resale value.
- Room for capital growth: Given local comparable flats selling for £290–£325k, there is potential for capital appreciation, especially if demand in Ewell/Epsom remains strong.
Why Now Is the Right Time to Invest
- Discounted entry price vs market comparables: With many one-bedroom flats in KT17 selling at £290k–£325k, acquiring this property at £250k offers an attractive discount – providing instant equity and potential upside.
- Yield advantage: At this price, you get a gross yield near 6% and a solid net yield above 5% – competitive for buy-to-let investments in commuter towns outside central London.
- Stable, low-cost holding: Long lease, modest charges, and included parking reduce ongoing risk and running costs.
- Strong tenant demand potential: Ewell Village and Epsom remain popular with professionals and commuters seeking both convenience and a balance of village atmosphere and transport access.
- Capital growth potential: Given the gap to prevailing market-value flats in the area, the property is well positioned for future value appreciation – particularly if the local market strengthens or demand increases.
Investor Summary & Recommendation
22 Mercury House represents a rare opportunity to secure a long-lease, one-bedroom flat with parking – at a significant discount to local market comparables – delivering strong rental yield (5.8% gross) and the potential for capital appreciation.
We believe this is an attractive addition to any buy-to-let portfolio or investment fund – and one to act on quickly before market comparables shift further.
LET PURE INVESTOR TAKE THE STRAIN AWAY …..
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