1 & 3 Netherby Street, Longtown, Carlisle, Cumbria CA6 5SA

Description

Residential investment opportunity comprising 2 self-contained flats. The first floor flat is vacant and the ground floor flat is let on an Assured Shorthold Tenancy at £475 per calendar month. When fully let a gross yield of 16% should be attainable based on the guide price. Access was not available to the ground floor flat; only the first floor flat will be available for viewing.

Accommodation

Ground Floor - 1 Netherby Street - let on AST at £475 pcm: Hall; Sitting Room 15'6 x 11'; Kitchen 9'9 x 8'; Bedroom 9' x 8'; Bathroom 7'3 x 5'6; Bedroom 10' x 9'6. First Floor - 3 Netherby Street - vacant flat: Sitting Room 15'6 x 14'9; Kitchen 10' x 8'; Bedroom 9' x 8'; Bathroom 8'6 x 5'6; Bedroom 13'9 x 9'6. Outside: Rear yard with access via passageway to front street.

Location

Situated just off the main street in Longtown, some 7 miles north of Carlisle. What3words location: ///cheese.fetching.nodded

Tenure / Property Information

Investment Analysis

The £75,000 guide is broadly aligned with the supplied historic Netherby Street sales evidence of £74,000 and £75,000, although those transactions completed in 2016 and 2018 and are not confirmed to comprise two flats. The £75,000 base GDV is therefore an indicative guide/comparable-based estimate only, not a formal current valuation. The auctioneer's stated 16% fully-let gross yield implies total rent of approximately £1,000 pcm, comprising the passing £475 pcm plus an implied £525 pcm for the vacant flat.

Investment Snapshot

Strategy Recommendation

Potential income investment or BRRR only at a price below or around the guide, subject to legal-pack review, inspection of both flats, confirmation of the tenancy and validation of the vacant flat's achievable rent. Do not underwrite a flip without current valuation, condition and selling-cost evidence.

Works Required

No specific defects or refurbishment requirements are evidenced. Obtain access to and inspect both flats, particularly the ground-floor flat currently inaccessible, then undertake only evidenced maintenance, safety, compliance or letting-preparation works. Review EPC E implications and the legal pack before committing.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the £75,000 base GDV, 75% refinance is approximately £56,250. Against the £76,500 acquisition-plus-known-admin-cost figure, this indicates approximately £20,250 cash left in before any works, finance costs, tax, legal/disbursement charges or other purchaser costs. The strategy depends on achieving the stated £1,000 pcm fully-let rent and acceptable legal-pack, lease and condition findings.

Buy-to-Let Analysis

At the £75,000 guide, the stated fully-let rent estimate of £1,000 pcm produces £12,000 annual rent and a 16.00% gross yield. The currently passing rent alone is £475 pcm, or £5,700 annually, equivalent to 7.60% on the guide before allowing for the vacant flat, operating costs, voids, tax and finance. The £1,000 pcm total is an auctioneer indication rather than independently evidenced achieved rent. Base total cost of £76,500 includes the guide price and the £1,500 minimum admin charge only; works and other legal/disbursement costs are not included.

Flip Analysis

A £75,000 base GDV is supported only by the guide and historic local flat sales, with no supplied selling-cost allowance or refurbishment budget. On the known £76,500 acquisition-plus-admin figure alone, there is no apparent gross margin before works and selling costs. A reliable flip surplus cannot therefore be established.

Investor Risks & Due Diligence

• Ground-floor flat access was unavailable, so its condition and compliance position are unverified.

• The first-floor flat is vacant and the £525 pcm implied rent is not supported by an external rental comparable.

• The stated 16% yield is an auctioneer estimate, not a guaranteed or achieved fully-let yield.

• Tenure, leases, tenancy terms and any legal-pack obligations remain unknown.

• The property has an EPC rating of E; implications for letting and any required works are not evidenced.

• The £1,500 admin charge is known, but legal, search, transfer, seller-cost reimbursement, disbursement and other purchaser charges may also apply.

• Works, finance costs, tax, maintenance, voids and management costs are not included in the gross-yield calculations.

Recommendation

Potential income investment or BRRR only at a price below or around the guide, subject to legal-pack review, inspection of both flats, confirmation of the tenancy and validation of the vacant flat's achievable rent. Do not underwrite a flip without current valuation, condition and selling-cost evidence.

Strategy Rating

Analysis Confidence

The passing rent, guide price, occupancy and historic local sales are supplied, but there is no external rental evidence, no condition assessment for the inaccessible ground-floor flat, no legal-pack detail, no current comparable valuation, and several purchaser costs remain unknown.