201 Commercial Road, London E1 2BX

At a glance

Top strategy — Subdivide

The strongest play is splitting the upper floors into two self-contained flats while retaining the commercial ground floor. Comparable per-square-foot resi values in E1 support an exit around £510,000 against a £425,000 guide and a £45,000 refurbishment, leaving healthy margin before fees. Buy-to-let is borderline on current rents; HMO fails on the local Article 4 direction.

Comparable sold prices

Risk rating Medium

• Mixed-use class — confirm the ground-floor commercial unit's permitted use before assuming residential conversion.
• Guide price sits ~17% below comparable resi values; check for a short lease or structural issue driving the discount.
• HMO scores poorly here — Article 4 direction applies in this part of Tower Hamlets.

Legal pack findings

Title

Freehold, registered (title number EGL123456). No restrictions or charges noted on the official copy in the pack.

Special conditions

Buyer to pay the vendor's legal fees of £1,800 + VAT and contribute £350 to the searches pack. A 1.5% + VAT buyer's premium applies.

Searches

Local authority and drainage searches present and under six months old. No enforcement notices. Within a CIL charging area.

Tenancy

Ground-floor unit let on a commercial FRI lease, 4 years unexpired, £14,500 pa. Upper floors vacant.

Section 20 / service charge

Not applicable — freehold, no management company.

Cladding

Not applicable — three storeys, below 11m. No EWS1 required.

Ground rent

Not applicable — freehold.

Questions for your solicitor

1. Confirm whether the commercial lease contains a break clause or redevelopment provision.
2. Check the Article 4 direction's effect on any planned change of use to residential.
3. Verify that the CIL liability has been assessed and quantified for the proposed scheme.