Clapham Guest House, 685 Wandsworth Road, London, SW8 3JE

This asset was originally purchased by the family in 2008, where it was operating as single room lets under the 'Sui Generis' use class. The building was subsequently refurbished and from 2009 it had operated as a hotel under the name 'Clapham Guest House'. Reviews and information can be provided to support this statement.

As the property had a HMO licence the owner decided to change how it traded and has implemented AST lets under the HMO licence, to which it still trades under (The HMO licence has three years to expiry).

From a planning perspective the owner believes that as the asset has historic established use as a Guest House / Hotel, given the time that has passed the purchaser would have no issue changing the use back to C1 as this enable higher returns.

Clapham Guest House is ideally located in South London, close to the River Thames, Houses of Parliament, the West End and other popular sites in Central London. The property is a 10 minute walk from Clapham Common Underground Station which is served by the Northern Underground Line. Furthermore, it is situated just 10 minutes walk from Wandsworth Road Station which services Waterloo and also a short bus ride from Clapham Junction which provides access to Victoria and Gatwick Airport.

Please note when looking at the floorplans, on the second floor the small bedroom on the bottom right on the plan is now a second kitchen. This is to comply with modern day HMO standards.
GIA: 2,054 sq.ft

7 x letting rooms
1 x staff accommodation
Planning approved and building work near to completion for erection of a single storey dwelling at the rear of the garden.

Close to £100K has recently been spent by the vendor to build the single storey dwelling at the rear of the garden, brand new fences on both sides of the garden, paving, plus additional refurbishments within the existing building.

When the asset was trading as 'Clapham Guest House' the property was able to achieve revenue streams within the region of £180,000 per annum before costs. Net profit historically was in the region of £120,000. Running this asset as a hotel allows for the proposed buyer to achieve a higher yield/return instead of trading on AST's.

In 2021 the vendor put in an additional kitchen to comply with HMO guidance, this allows for all rooms to be lettable as AST’s. Total rent received from the 7 AST's equates to £5,560 per month and £66,720 per annum. There is scope to increase revenue via the planning consent to develop a single story dwelling at the rear of the garden. We expect the additional development to increase revenue streams by c. £10,800pa. This would increase total rent received to c.£77,520 if you were to carry on trading with AST's in place.

Use Class: HMO

In March 2021 the below planning application was approved:

As an AST this could generate an extra £900 rental income pcm totalling an improved total revenue of c. £77,520. The returns would of course be higher if you ran the asset as a hotel.

Freehold

AST's - Potential for change of use back to a hotel.

This property is classed as band E for Council Tax and the bill for 2021/2022 was £1,945.28.