10 Pease Close, Hornchurch, Essex RM12 5AW

Description

A vacant three-bedroom mid-terrace house with reception room, kitchen and conservatory, three bedrooms and bathroom, rear garden and off-street parking. Leasehold with approximately 59 years unexpired. EPC B; six-week completion.

Location

Pease Close is in Hornchurch/Elm Park, with access to Hornchurch Country Park, Elm Park Underground and Upminster rail services.

Investment Analysis

Investment Snapshot

Property & Refurbishment

I would initially allow £15,000–£25,000 for the works indicated by the listing, investor-grade finishing and contingency. This is an HB/AI feasibility allowance rather than a contractor quotation and should be replaced by survey and itemised trade pricing before bidding.

Rental Analysis

For sensitivity testing I would use an HB market-rent estimate of £1,900–£2,200 pcm. This equates to approximately £22,800–£26,400 per annum and 13.4%–15.5% gross on the guide. At midpoint rent and works, gross yield on guide plus works is about 12.9% before finance, management, maintenance, insurance, compliance, voids and tax.

GDV / Resale Analysis

For feasibility I would use an indicative £350,000–£410,000 completed-value range. This is an AI-assisted investment appraisal estimate and not a formal RICS valuation. Using midpoint assumptions gives an estimated completed value of about £380,000 against guide-plus-midpoint-works of approximately £190,000.

Properties Sold Within Approx. 5 Miles

No sufficiently specific sold comparables were independently verified in this market check. The GDV should therefore be confirmed against recent Land Registry/RICS evidence before bidding.

Potential BRRR Position

At the midpoint GDV of approximately £380,000, a purely illustrative 75% LTV refinance would be around £285,000. Against guide plus midpoint works of approximately £190,000, this should be viewed only as a sensitivity test; lender valuation, construction, lease length, rental stress tests and borrower criteria determine the actual refinance.

Flip Analysis

A resale strategy should be tested against the conservative end of the £350,000–£410,000 GDV range and must deduct acquisition tax, the £1,800 auction administration charge, legal fees, finance, holding costs, refurbishment, contingency and selling costs. Headline uplift is not the same as net profit.

Investor Risks & Due Diligence

• Obtain a specialist lease-extension valuation before bidding.




• Confirm Section 42 eligibility/assignment and freeholder details.




• Check ground rent and any service/estate charges.




• Verify long-lease value with recent local three-bedroom house comparables.

Recommendation

Preferred strategy: Lease Extension / Buy-to-Let / Resale. The final decision should be based on verified works costs, rent, legal position and comparable-supported end value rather than guide price alone.

Strategy Rating

BRRR: ★★★☆☆

Buy-to-Let: ★★★★☆

Flip: ★★★☆☆

Development: ★☆☆☆☆