109 Knox Road, Clacton-On-Sea, Essex, CO15 3TT

Description

Vacant self-contained two-bed flat requiring refurbishment with private garage. The flat has an exclusive ground floor entrance, is well laid out with two bedrooms, lounge and separate kitchen, and requires some improvement. There is a lock-up garage in a small block very close by.

Accommodation

Ground floor private entrance, hallway and stairs to first floor landing; lounge 17'7" x 9'7"; rear balcony; kitchen 9'7" x 8'6"; bedroom 1 17'5" x 9'11"; bedroom 2 11'10" x 6'11"; bathroom/WC 6'5" x 3'6". Externally, garage in block of 3 situated close to the property.

Location

Within walking distance of Clacton Station and Town Centre.

Tenure / Property Information

Investment Analysis

Five completed leasehold flat sales on Knox Road range from £107,000 to £130,000, with an average of £119,000. A base GDV of £119,000 is used, with a low scenario of £107,000 and high scenario of £130,000. The comparison is indicative because the evidence does not confirm the comparables' size, condition, garage provision or refurbishment level relative to the subject property.

Investment Snapshot

Strategy Recommendation

Proceed only subject to survey, leasehold information, refurbishment quotations and confirmation of all auction and completion costs. The property appears more suitable for a value-led BTL or BRRR assessment than an unconditional flip, but the unknown works budget prevents a firm bid recommendation.

Works Required

Refurbishment and general improvement are required, but the supplied evidence does not specify the scope or condition of individual elements. Obtain a survey and contractor quotations before bidding.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

The guide price is materially below the completed Knox Road sales evidence and 75% of the £119,000 base GDV is £89,250. However, the refurbishment cost and other completion or ownership costs are unknown, so total project cost, equity requirement and cash left in cannot be calculated reliably. Refinance assumptions should be tested with a lender after confirming the lease, valuation and works budget.

Buy-to-Let Analysis

Using the lower advertised two-bedroom asking rent of £1,150 pcm, gross rent is £13,800 per year and the gross yield on the £65,000 guide is approximately 21.23%. The £1,700 pcm evidence is also only an advertised asking rent and is not a passing or achieved rent. Net yield cannot be established because refurbishment, service charge, ground rent, finance, void and other ownership costs are unavailable.

Flip Analysis

The completed-sales evidence supports a possible resale value around £119,000, subject to condition and comparability. A flip surplus cannot be calculated because refurbishment costs, selling costs and other project costs are not supplied. The apparent guide-to-GDV spread should not be treated as profit.

Investor Risks & Due Diligence

• Refurbishment is required, but no detailed scope or cost allowance is supplied.

• Leasehold service charge, ground rent and other leasehold obligations are not provided.

• Rental figures are advertised asking rents rather than achieved or passing rents.

• Auction buyer premium and admin charge total £2,400, with further possible search, seller-cost, legal, transfer and disbursement charges.

• The comparable sales may differ in size, condition, garage provision and specification from the subject flat.

• A private balcony and garage are described, but their legal rights, maintenance obligations and title position are not confirmed.

Recommendation

Proceed only subject to survey, leasehold information, refurbishment quotations and confirmation of all auction and completion costs. The property appears more suitable for a value-led BTL or BRRR assessment than an unconditional flip, but the unknown works budget prevents a firm bid recommendation.

Strategy Rating

Analysis Confidence

There is useful local completed-sales evidence and advertised rental evidence, but the subject condition, refurbishment cost, leasehold charges, selling costs and comparable-property details are incomplete.