Description
The E5 2-bed terrace investment at London, E5 9SP presents a rare below-market-value opportunity in Hackney. Situated on a quiet residential street, this Victorian terrace requires minimal works beyond its new bathroom. Sold with vacant possession, it suits buy-to-let investors or owner-occupiers aiming for a swift turnaround.
On the ground floor, a bright reception room leads to a fitted kitchen overlooking a low-maintenance garden. Moreover, two double bedrooms upstairs enjoy generous natural light, while the modern bathroom has been completely refurbished. Consequently, investors benefit from instant equity of at least £100,000, with current market value starting at £600,000.
Rental demand in E5 remains strong: rents for 2-bed terraced homes average £2,500 pcm, yielding 6.0% gross and 4.1% net on the guide price. Furthermore, a recent comparable sale at £625,000 underscores robust capital growth potential. Therefore, this property is ideal for cash buyers seeking steady rental income or bridging finance users with a quick exit strategy.
Key Takeaway: Acquire a London E5 2-bed terraced house at £500,000 plus fees, with £100,000+ immediate equity (20%+ BMV), vacant possession, new bathroom, and FMV of £600,000+ for cash-or-bridge buyers seeking quick completion.
💰 Financial Analysis
| Metric | Value |
|---|---|
| Purchase Price | £500,000 |
| Immediate Equity (FMV £600K) | £100,000 (20%) |
| Immediate Equity (Comp £625K) | £125,000 (25%) |
| Monthly Rent (Market Rate) | £2,500 |
| Annual Rental Income | £30,000 |
| Gross Rental Yield | 6.00% |
| Net Rental Yield* | 4.09% |
| All-Cash Cash-on-Cash Return | 4.09% |
| Bridge 65% LTV Cash-on-Cash Return | –5.96% |
| 3-Yr All-Cash ROI (5% p.a.) | 51.2% |
| *After typical costs: insurance, maintenance, 8% management, voids, ground rent & service charge. |
Figure: Yield & ROI comparison across financing scenarios.
📍 Location & Transport
- Homerton Station (London Overground): 0.5 miles
- Bus routes 253, 254, 276 to Central London
- Close to Hackney Church Street shops & cafés
- Victoria Park & Hackney Marshes nearby
- Hackney Council planning: hackney.gov.uk/planning
Internal Link: Auction Calendar for viewings & bids.
🌐 Media Links
- Hackney property market trends: rightmove.co.uk/area-guides/Hackney-property-market/E5
- TfL Homerton Station: https://tfl.gov.uk/modes/rail/overground
- Victoria Park guide: royalparks.org.uk/parks/victoria-park
Ready for immediate acquisition—contact Palace Auctions to secure this high-yield London investment.
Page last updated 17th August 2025. 12:07GMT
