Investment Report: 13 Horn Lane, Acton, London W3 9NJ : Freehold Mixed-Use Income Opportunity

DRAFT : NOT PUBLISHED
Prepared for: Ben / Oracle acquisition screening
Date: 7 September 2026
Prepared by: Realty Packaging
Status: Initial screening report only

Image note: The specified Rightmove image was not accessible during preparation. No substitute image has been used.

Scope disclaimer: Rightmove and agent details are source-reported and have not been independently verified. Current availability is unconfirmed. Previous Savills auction entries indicate that the property may have been withdrawn, sold or unsold, or re-marketed. Obtain direct written confirmation from the current agent or vendor before offering. This report is not a valuation, recommendation, lending decision or guarantee. It does not confirm Oracle endorsement, approval or letting.

Main points summary

The property is reported as a freehold mixed-use building comprising a ground-floor shop and seven flats above.
The residential accommodation is reported as six studios and one one-bedroom unit.
The current Rightmove source-reported asking price is £1,249,999.
Rightmove reports total annual income of £125,375.64, implying a simple gross yield of approximately 10.03% before costs.
Previous Savills entries report income of £121,815.60 per annum, creating a material unexplained difference of £3,560.04 per annum.
The property may fit the supplied Oracle screening criteria due to its London location, freehold tenure, seven residential units, commercial element and advertised yield above 7.5%. This is an initial screen only.
The main risks are availability, title and sale authority, council-contract terms, shop lease evidence, compliance, condition, financing and rent reconciliation.
No unconditional offer should be submitted until the income, legal title, contracts, condition and financing have been independently reviewed.

Executive summary

13 Horn Lane is reported as a freehold mixed-use investment in Acton, West London. The reported accommodation consists of a ground-floor shop, ancillary basement space and seven flats on the upper floors.

The Rightmove listing reports an asking price of £1,249,999 and annual income of £125,375.64. On that information, the indicative gross yield is:

£125,375.64 ÷ £1,249,999 = approximately 10.03%

This calculation excludes operating costs, finance costs, tax, capital expenditure, voids, arrears, management and acquisition costs.

The opportunity may meet the supplied Oracle screening criteria:

London and Southeast location.
Freehold mixed-use asset.
Seven residential units plus a commercial shop.
Advertised gross yield above the 7.5% minimum.
Potential council-backed residential income, subject to contract evidence.
Unit count within the stated preference of two or three units to 100-plus units.
Asking price within the stated lot-size ceiling.

This does not confirm Oracle acceptance, approval, endorsement or funding. The opportunity remains subject to full commercial property due diligence.

Acquisition scope

The proposed acquisition is the freehold interest in the building. The legal title must establish:

The registered freehold owner.
The exact property boundary.
The shop, basement, upper floors and access arrangements.
Rights for entrances, services, repairs, refuse and maintenance.
Any charges, restrictions, covenants, easements, options or overage.
The seller’s authority to sell.
Any SPV, LPA Receiver, lender or insolvency-related authority requirements.

Do not assume that the upper accommodation has separate titles, independent rights or a particular legal configuration. Obtain official title documents and title plans through HM Land Registry.

Location overview

The property is located on Horn Lane, Acton, London W3 9NJ. The Savills source pages report access to:

Acton Central National Rail station.
Acton Town Underground station.
Piccadilly and District line services from Acton Town.

These are source-reported transport details. This report does not rely on unverified footfall, demographic, rental growth or capital growth statistics.

Tenancy and income schedule

Element	Source-reported income	Monthly equivalent	Reported arrangement	Verification status
Ground-floor shop	£7,800 pa	£650 pcm	20-year lease from 2021	Verify tenant, date, expiry, reviews, breaks, arrears, repairing and insurance terms
Six flats / residential income	£117,575.64 pa	£9,797.97 pcm	Reported fully let to Hammersmith & Fulham Council on a five-year term	Verify whether this is a lease, nomination agreement, management agreement or guaranteed-rent contract
Total	£125,375.64 pa	£10,447.97 pcm	Rightmove source-reported total	Reconcile against contracts, rent schedule and bank evidence

The Savills schedules require further reconciliation. They report:

Shop income of £7,800 per annum.
Hammersmith & Fulham Council income of £101,055.60 per annum.
One studio reported separately at £12,960 per annum.
Total income of £121,815.60 per annum.
The upper accommodation described as six flats, including five studios and one one-bedroom unit.

This differs from the Rightmove presentation of six studios and one one-bedroom unit with residential income of £117,575.64 per annum. The £3,560.04 annual difference must be explained before relying on the advertised yield.

For the shop, verify the exact tenant identity, lease commencement date, expiry, rent reviews, break rights, deposits or guarantees, assignment provisions, VAT treatment, repair obligations, insurance, service charge and security of tenure.

For the council-related income, verify the contracting entity and whether the arrangement is a direct lease, commissioned housing agreement, nomination agreement, management agreement or guaranteed-rent structure. Confirm term, breaks, termination rights, indexation, payment obligations, repair responsibilities, void and arrears treatment, possession rights and compliance responsibilities.

Availability and source history

The Rightmove listing is the source of the £1,249,999 asking price and £125,375.64 annual income figures. Its current availability has not been independently confirmed.

Previous Savills auction pages dated February 2025, March 2026 and April 2026 describe the asset as a freehold shop with seven flats and report annual income of £121,815.60. The entries refer to sale by order of LPA Receivers in the 2026 listings. The April 2026 page also states that the property was to be offered at auction.

Auction listings may be withdrawn, sold, unsold or re-marketed. The current agent or vendor must confirm in writing:

Whether the property is available.
The current asking price and sale route.
Whether the seller has authority to sell.
Whether VAT applies.
Whether the Rightmove income remains current.
Whether any auction, receiver or lender conditions remain relevant.

Indicative financial model

The following figures are screening assumptions based on the £1,249,999 asking price and £125,375.64 Rightmove source-reported income. They are not forecasts.

Assumption	Amount
Asking price	£1,249,999
Advertised annual income	£125,375.64
Advertised monthly income	£10,447.97
Simple indicative gross yield	10.03%
75% LTV interest-only debt	£937,499.25
25% deposit/equity	£312,499.75
Assumed interest rate	6% per annum
Annual interest	£56,249.96
Monthly interest	Approximately £4,687.50
Surplus before operating costs, tax and capex	£69,125.68 pa
Monthly surplus before operating costs, tax and capex	£5,760.47

The deposit excludes SDLT, VAT, legal fees, valuation fees, lender fees, surveys, insurance and other acquisition costs.

If the older Savills income of £121,815.60 is verified, the gross yield would be approximately 9.75%. At 6% interest-only debt, the surplus before operating costs would be £65,565.64 per annum. This is not a substitute for a complete rent roll and supporting evidence.

Interest-rate sensitivity

Interest rate	Annual interest	Advertised-income surplus before operating costs
5%	£46,874.96	£78,500.68
6%	£56,249.96	£69,125.68
7%	£65,624.95	£59,750.69

A 10% fall in advertised income would reduce income to £112,838.08 per annum. After assumed 6% interest, the surplus would be £56,588.12 per annum before operating costs, tax and capital expenditure.

Illustrative True ROI: £69,125.68 ÷ £312,499.75 = approximately 22.12%.
This is a cash-on-deposit presentation metric only. It is not independently verified, not an IRR, not a total return, and excludes operating costs, tax, capex, transaction costs, voids and lender fees.

Based on the older Savills income, the equivalent calculation is £65,565.64 ÷ £312,499.75 = approximately 20.98%.

“Net cash flow” is not true net profit until insurance, repairs, management, service charge, council-contract costs, compliance, voids, arrears, professional fees, tax, capital expenditure and finance costs are fully modelled.

Four due-diligence pillars

1. Lease structures

Review the freehold title, shop lease and council agreement. Confirm tenants, terms, rent, reviews, breaks, deposits, guarantees, assignment, repairs, insurance, service charge, VAT and security of tenure.

Confirm the status of each of the seven flats, including ASTs, leases, licences, occupancy arrangements, possession rights and compliance duties.

2. Planning permissions

Confirm lawful shop and residential use, conversion history, building-regulation approvals, HMO and other licensing requirements, Article 4 restrictions, restrictive covenants, listed or conservation controls, signage, extraction and any Section 106 or CIL obligations. Use the GOV.UK planning permission guidance.

Planning permission does not guarantee value, finance or future consent.

3. Building condition

Commission an independent survey covering the roof, structure, façade, damp, services, drainage, windows, fire separation, compartmentation, alarms, emergency lighting, asbestos and likely capital expenditure. Review the common parts and services serving all seven flats. Refer to the RICS technical due diligence guidance.

4. Operational compliance

Check EPC and MEES requirements for the shop and flats, fire and life safety, gas and electrical certification, asbestos, smoke and carbon monoxide alarms, licensing, insurance, service charges, business rates, council tax, waste, health and safety and any supported or specialist housing requirements. Review non-domestic MEES guidance.

Structure, capital allowances and tax strategy

A limited company may support profit retention, portfolio reinvestment and liability ring-fencing. Rental profits and gains are generally taxed at company level, with additional tax potentially applying when funds are distributed. Company ownership creates additional Companies House, accounting and corporation tax obligations.

An LLP provides limited liability with partnership-style governance and flexible capital and profit allocation. It is generally tax transparent, so profits and gains are allocated to members and taxed at member level. An LLP may suit a multi-investor structure but requires a detailed partnership agreement and tailored tax advice.

Direct ownership may be simpler but can expose rental profits and gains to individual tax rates. The correct structure depends on investor residence, funding, profit extraction, succession, refinancing and the intended holding period.

Capital allowances should be investigated for qualifying plant and machinery within the commercial element, such as electrical systems, lighting, heating, ventilation, security and qualifying fixtures. Instruct a specialist to review historic expenditure and any seller claims. The acquisition documents may require appropriate Section 198 or Section 199 elections to preserve access to qualifying allowances.

Tax-efficient property investment strategies may include:

Comparing individual, limited company and LLP ownership.
Reviewing SDLT and mixed-use treatment.
Confirming VAT and any TOGC position.
Identifying capital allowances.
Retaining profits for portfolio growth where appropriate.
Modelling corporation tax, income tax and capital gains tax.
Stress-testing refinancing and refurbishment expenditure.

Obtain advice on SDLT, VAT, corporation tax, income tax, capital allowances and any council-contract tax issues before exchange.

GDV and value-add assessment

Source-reported facts include the seven flats, shop, advertised income, reported council counterparty, reported 2021 shop lease and previous auction history.

Potential opportunities remain unverified. They may include council-contract renewal or reversion, rent review or indexation, rent-roll reconciliation, shop lease strengthening, EPC and compliance improvements, refurbishment, management efficiencies, refinancing after stabilisation, title or lease optimisation and possible yield compression.

Do not assume additional flats, residential conversion uplift, vacant-possession value or development value.

For illustration only, if verified income were £125,375.64 per annum:

At an illustrative 9.0% yield, capitalisation value would be approximately £1,393,063.
At an illustrative 8.5% yield, capitalisation value would be approximately £1,475,008.

These are hypothetical capitalisation illustrations, not a valuation. They ignore costs, lease risk, capex, taxes, growth, purchaser’s costs and lender criteria.

GDV applies only where a real development or repositioning scheme is supported by planning, design, costs, finance and market evidence. GDV is not market value or investment value.

Principal risks

Current availability and stale, withdrawn or re-marketed listing risk.
Price and income may have changed.
£125,375.64 versus £121,815.60 income discrepancy.
LPA Receiver, ownership, SPV, title and authority-to-sell risk.
Council contract term, counterparty, break, termination, funding and payment risk.
Shop tenant identity, covenant, expiry, review, break, arrears, repair, insurance and security-of-tenure risk.
Flat licensing, lawful use, tenancy status, council tax, fire and life-safety compliance.
Roof, structure, damp, common parts and capital expenditure.
EPC, MEES, insurance, service charge, rates, VAT, SDLT and tax.
Interest rate, valuation, refinance, void, management and income-concentration risk.

Investor action plan

Obtain written agent or vendor confirmation that the property is available and confirm price, VAT and sale route.
Reconcile the Rightmove income with every Savills figure and obtain the rent roll, leases, contracts and bank evidence.
Verify title, freehold ownership, SPV, LPA Receiver authority, charges, restrictions, covenants and rights.
Review the shop lease and Hammersmith & Fulham Council agreement in full.
Commission planning, licensing, fire and life-safety, building, EPC, MEES and insurance reviews.
Obtain an independent valuation and lender terms. Stress-test the 75% LTV model and reserves.
Confirm SDLT, VAT, corporation or income tax, capital allowances and council-contract tax treatment with advisers.
Do not submit an unconditional offer or rely on the advertised yield until material diligence is satisfactory.

Realty Packaging compliance information

Subject to Realty Packaging confirming current status:

Registered company: No. 16994178.
HMRC AML supervised.
ICO registered.
Property Ombudsman member.
Professional Indemnity Insurance.

These statements are as represented by Realty Packaging / subject to confirmation. No policy numbers or limits are stated.

Sources

support@realtypackaging.co.uk
Rachel on +44 20 4513 2218
realtypackaging.co.uk

Investment Report: 13 Horn Lane, Acton, London W3 9NJ — Freehold Mixed-Use Income Opportunity