36 - 38 Spencer Road

Harrow HA3 7AP

Overview

Cushman & Wakefield and Estate Office are delighted to seek offers for an exceptional Freehold building on a 0.22 acre site with the benefit of planning permission within easy walking distance of Harrow and Wealdstone Station.
  • Strong opportunity to acquire a Freehold building on a 0.22 acre site, currently arranged as a 20-unit HMO with planning permission granted to extend to 22-units.
  • Outline agreement in place with Home Office backed Clearspring Ready Homes, for a lease of the existing building in its current condition for a term of 7 years at £168,000 per annum.
  • The existing property extends to approximately 500 sq m (5,400 sq ft) GIA, and holds a HMO License for up to 20 bedrooms and 42 occupants.
  • Planning permission in place for a proposed redevelopment of the existing building to create a 22-unit HMO across 555.7 sq m (5,982 sq ft) GIA with a private market ERV of c £275,000 per annum.
  • Further development scope on the land to the rear for 7 additional HMO units.
  • The Freehold is available for sale as a whole by means of Informal Tender at £2,450,000 STC.

Location

Transport

The property is located centrally in the London Borough of Harrow, 700m or a 9 min walk north of Harrow and Wealdstone Station. The property benefits from a rating of PTAL 4. This station provides many connections to Central London, as well as further afield, including access to the London Underground Bakerloo Line, London Overground and West Midlands Trains services between London Euston Station, Milton Keynes, Birmingham and Liverpool. There are also Southern train services between Milton Keynes, Gatwick Airport, Brighton and other coastal destinations.

Car

M25 Junction 17 - 11.2 miles (27-minute drive)

Train

Harrow & Wealdstone (9-minute walk)
  • West Midlands Train Services (12 min to Euston Station)
  • London Underground Bakerloo Line (33 min to Baker Street Station)
  • London Overground
  • Southern Train Services
Harrow on the Hill (32-minute walk)

Plane

Heathrow 11.6 miles (33 minute drive)

Luton 24.1 miles (34 minute drive)

Bus

High Street (A409) (2-minute walk)

Situation

The A409 High Street runs to the west of the property, connecting it with the district centre and Harrow on the Hill. 36-38 Spencer Road is situated on the west side of the road half way between the junction with the High Street (A409) to the south and The Cross Way to the north.

Spencer Road is situated 2 minutes from Wealdstone Town Centre. The local area is very well supplied by amenities. The building is within easy reach of the following services and facilities provided in the town centre, including:
  • Iceland supermarket (3 min walk);
  • Asda supermarket (5 min walk);
  • Sainsbury's Local store (7 min walk)
  • Costa coffee shop (3 min walk)
  • Wealdstone Library (6 min walk)
  • Nationwide Building Society (6 min walk)
  • Boots pharmacy (5 min walk); and
  • Variety of other cafes, restaurants and takeaways.

Description

A prominent Freehold building located on a 0.22 acre site located in a popular residential area.

  • 36-38 Spencer Road is situated in a prominent location in Harrow, a short distance to the north of Harrow & Wealdstone Station.
  • The existing building and site consist of a large detached period house, that have been extended to the rear and converted into a substantial detached HMO building, providing accommodation over three floors.
  • The main building features a red brick facade in combination with red hung tiles on the first floor level. The extended ground floor in the rear has a pebble dash finish.
  • The opportunity comprises a site with an existing building, currently arranged as a 20-unit HMO, which benefits from an HMO Licence for up to 20-Units and 42 Occupants.
  • There is planning in place for a proposed redevelopment of the existing building to create a 22-unit HMO of 555 sq m GIA.
  • There is scope for additional uplift on the land to the rear of the existing building. A planning application was submitted for 7 additional units, which although not consented in its current form, crucially accepted the principle of HMO. An appeal to the decision is expected to be submitted week commencing 23rd March 2020.
  • The property is currently in lettable condition. There is an outline agreement in place with Clearsprings Ready Homes, sole providers for South of England to The Home Office for the seven year AASC contract. They have a strong need for this type of accommodation and have agreed to rent the property for £168,000 per annum. This agreement is for a term of 7 years and is for the building arranged as is, in its current condition.

Tenure

Freehold.

Planning Overview

The London Borough of Harrow issued a lawful development certificate (ref P/4256/19) on 29 November 2019 confirming that the lawful use of Kings Guest House is as a 20-bedroom house of multiple occupancy (HMO). The plans attached to the certificate confirm the presence of:
  • On the ground floor, six bedrooms (of which two have ensuite bathrooms), two shared bathrooms, four shared kitchens, one shared dining room and one shared lounge
  • On the first floor, ten bedrooms (of which four have ensuite bathrooms) and four shared bathrooms
  • On the second floor, four bedrooms.
The London Borough of Harrow also granted planning permission (ref P/4251/19) on 29 November 2019 for an extension and alterations to the Kings Guest House building to provide a 22-bedroom HMO with:
  • On the ground floor, ten ensuite bedrooms, two shared kitchens, a shared kitchen/utility room and an administration office with WC
  • On the first floor, eight ensuite bedrooms, two shared kitchens and a shared kitchen/utility room
  • On the third floor, four ensuite bedrooms and a shared kitchen/utility room.
A later planning application (P/5198/19) for a separate HMO located on the hardstanding to the rear of Kings Guest House was refused by the London Borough of Harrow on 9 March 2020. The proposed new building has six ensuite double bedrooms, two shared kitchens and a self-contained wheelchair accessible double bedroom unit. An appeal against refusal has been submitted to the Planning Inspectorate and the prospects of success at appeal are high, with the local planning authority having accepted that the principle of an HMO is acceptable. Appeal will be submitted w/c 23rd March 2020.

THE OPPORTUNITY

  • Outline agreement in place with Clearsprings Ready Homes who have a strong need for this type of property/accommodation.
  • Proposed annual rental income of £168,000 from a lease with a term of 7 years.
  • Planning in place for a proposed redevelopment of the existing building to create a 22 unit HMO.
  • Scope for renegotiation of a new lease with Clearsprings Ready Homes following internal reconfiguration and extension of current property.
  • Potential for development of a further building to the rear of the existing property. This is subject to obtaining the usual necessary consents and permissions.
  • Strong underlying demand for HMO assets in the area.
  • Strong potential to agree a long lease with a housing association or council who are in need of this type of accommodation.

VAT

The property is not subject to VAT.

SERVICES

We are informed that mains water, electricity, gas and drainage are provided. It is the purchasers responsibility to carry out their own due diligence with regards to the services that are provided and that these services are correct for any potential future use.

PLANNING

We have reviewed the Local Planning Authority website regarding town planning matters and understand that the existing buildings are neither statutorily nor locally listed and the properties are not located within a conservation area.

EPC

EPCs are available on request.

LOCAL AUTHORITY

Harrow Council
Harrow Civic Centre
Station Road
London HA1 2XY
Switchboard: 020 8901 2600

Proposal

TENDER PROCESS

The Freehold is available for sale as a whole by means of Informal Tender at £2,450,000 STC.

VIEWINGS

Inspections can be arranged with prior notice through Cushman & Wakefield, the vendors selling agent. Please contact Rufus Morgan (Rufus.Morgan@cushwake.com) or Ollie Brittan (o.brittan@estate-office.com) for access details.

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NET INITIAL YIELD:
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PRICE:
£2,450,000
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