Could This Be Chelsea’s Cheapest Flat?

Two-bedroom apartment in Chelsea, SW3 goes on sale for just £10,995 in spite of having a rental potential of £14,000 per year

In June, The Steeple Times featured a one-bedroom Kings Road, Chelsea apartment that was offered for £140,000 at auction and eventually went for just £138,000. That property’s price seemed like a bargain basement, but now we can go one better and share news of a two-bedroom property offered for just £10,995.

Marketed at a price lower than the cost of a brand new Vauxhall Corsa and situated in Dilke Street, Old Chelsea, the flat currently on the website OnTheMarket.com does have a catch – the lease term is just five years and there are additional costs attached.

Promoted by “wealth building” firm Omny Group, the particulars list a financial breakdown of the returns that could supposedly be generated from the property. They read as follows:

Figures based on an estimated annual average occupancy of 75% pcm and annual projected average daily rate of £200

Projected monthly figures:

Projected rental income = £4,550

Projected management costs (15% of rental income) = £682

Monthly lease payment = £2,225

Projected bills (a variable cost based on the property in terms of utility bills i.e council tax, water, electric, gas etc.) = £400

Potential average NET monthly income = £1,243

Potential average NET annual income = £14,196

Potential average NET income over 5 year term = £74,580

*Disclaimer – There is no option to purchase the property at the end of the term. Tenants may choose to self occupy this apartment although Omny Group would advise that this property is set up for and used as serviced accommodation utilising the corporate lets and/or the short lets model. The figures provided in the financial breakdown are potential or projected figures that have been sourced from the Global Serviced Apartments Industry Report 2019/2020; however Omny Group are not able to offer any performance guarantees.*