Summary - 114 RYE LANE PECKHAM LONDON SE15 4RZ
1 bed 1 bath Mixed Use
Fully let retail and eight‑bed HMO with rear development upside.
Ground-floor retail let on 20‑year lease at £51,000pa
Eight-room HMO fully let, recently refurbished, producing £115,200pa
Combined income supports a strong net initial yield at the asking price
Parcel of rear land with development potential (STPP) available separately
20 years left on commercial lease — lenders may decline mortgage finance
Electric wall heaters and individual sub‑meters; higher running costs possible
Prominent high‑street location, 0.1 miles from Rye Lane station
Inner‑city area with high crime and local deprivation to consider
This mixed‑use freehold on Rye Lane offers an immediately income‑producing investment in prime Peckham. The ground‑floor retail unit is let on a 20‑year lease at £51,000pa, while the upper three floors operate as an eight‑room HMO producing £115,200pa — a combined current income that supports the advertised valuation and a strong headline yield.
The HMO has been newly refurbished to a high specification: double rooms with en‑suite facilities, AEG appliances in a spacious communal kitchen, quartz worktops, outdoor terrace and individual electricity sub‑meters. The property benefits from a prominent high‑street frontage, high ceilings and easy access to Rye Lane station (0.1 miles), making it attractive to tenants and maintaining letting momentum.
There are material considerations for buyers. The commercial lease has 20 years remaining and the HMO rooms are let on ASTs; while the income is secure today, some mortgage lenders may refuse lending on this asset due to the lease profile and unspecified tenure. Heating is by electric wall heaters, and energy costs/tenant demand for heating could affect margins. The plot is narrow with only small external space.
A parcel of land to the rear has development potential subject to planning (STPP) and can be purchased by separate arrangement, offering future upside for a developer or investor prepared to progress planning. The location is an inner‑city, busy high‑street environment with high local crime rates and some area deprivation — factors investors should weigh when assessing re‑letting risk and long‑term capital growth.
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