Description
Key Takeaway: Acquire a freehold Victorian conversion at 30% below market value with planning permission for three units, delivering up to £78,000 pa rent and instant £450,000 equity.
Introduction
The Streatham property investment opportunity at Bourneville Road, London SW16 2BA offers investors a rare freehold Victorian conversion with full planning permission for three high-spec residential units. Priced at £1,050,000 (30% below the £1.5 million market value), this project combines immediate rental income from two existing flats with a permitted scheme to deliver three flats—including a ground-floor 3-bed with private 30 ft garden—boosting annual rents from £44,400 to £78,000 (a 75.7% uplift).
Description
This freehold development opportunity sits in Streatham Vale’s vibrant SW16 postcode. Currently configured as a one-bed ground-floor flat (in need of refurbishment) and a 3-bed duplex above, the property generates £44,400 pa. With planning permission secured, the proposed layout includes:
- Ground Floor: 3-bed flat with 30 ft private garden
- First Floor: 2-bed flat
- Second Floor: 1-bed flat
Moreover, refurbishment works are straightforward, with total development costs of £209,000 delivering a 75.7% uplift in rent. Therefore, investors benefit from strong demand in Streatham—the area boasts tree-lined streets, community amenities, and easy access to Central London.
Property Overview
| Metric | Value |
|---|---|
| Market Value | £1,500,000 |
| Purchase Price | £1,050,000 |
| Discount | £450,000 (30.0% below market) |
| Existing Units | 2 flats (1 × 1-bed, 1 × 3-bed) |
| Proposed Units | 3 flats (3-bed, 2-bed, 1-bed) |
| Current Annual Rent | £44,400 |
| Projected Annual Rent | £78,000 |
| Development Cost Estimate | £209,000 |
| Total Investment | £1,259,000 |
| Post-Dev Rental Yield | 6.20% |
| Payback Period | 6.2 years |
Figure 1: Financial Analysis Dashboard
Income & Yield Analysis
| Scenario | Annual Rent (£) | Yield (%) |
|---|---|---|
| Current (2 units) | 44,400 | 4.23 |
| Proposed (3 units) | 78,000 | 6.20 |
| Market Value Basis | 78,000 | 5.20 |
Location & Transport
The site is in the heart of Streatham Vale:
- Streatham Common Station (Thameslink): direct to Victoria & London Bridge
- Frequent bus services on Streatham High Road
- Local shops, cafés & Streatham Common park
- Lambeth planning portal for local guidance: lambeth.gov.uk/planning-and-building-control
- Streatham area guide: zoopla.co.uk/discover/property-news/streatham-area-guide/
Internal Link Suggestion:
– Auction Calendar to book viewings or place bids
Outbound Links:
- Rightmove London Market: rightmove.co.uk/house-prices/london.html
- Rental Yield Calculator: paragon-bank.co.uk/mortgage-calculators/rental-yield-calculator
- CGT Guide for Investors: gov.uk/guidance/capital-gains-tax-for-property-investors
Ready now for immediate start—contact Palace Auctions to secure this extraordinary Streatham Vale development opportunity.
Page last updated 16th August 2025 13:02
