That being said, I don't have the information I would need to say for certain, but that sounds as if that's a high price for the asset you're considering to buy.

My mum currently lives there, she is 80 and not very well, but you would also become a tenant in common and as such if you had the time you could profit 100% from the transaction, as I need cash urgently and am willing to heavily discount the asset.I am wondering if there is a market out there where someone wants to get a foothold in the London market by buying my part of the property.

Some buy to park money, others do 1031 exchanges or they simply buy them for a tax write-off. 

People will rent homes in that area because they cannot yet afford to buy, but hope to buy a newer home in the future and keep the kids in the same school system and around their same friends.

Is buying a rental into a living trust a good idea?

Why do you want to buy 2 rentals a year?

Quote from @Roger D Jones: SamEveryone here is providing great points to consider and if you were my son I would say that at 360k this 'dog needs to get put down'. 

What are some of the best areas or even zip codes that would be good to buy a rehab property?

What ever you're doing to find/buy/create deals is working.

Investment Info:Single-family residence buy & hold investment.