122A Luton Road, Chatham, Kent, ME4 5AD

Description

A Lower Ground Floor One Bedroom Flat Offered with Vacant Possession. The property comprises a lower ground floor one bedroom flat situated within a mid terrace building arranged over lower ground, ground and first floors.

Accommodation

Lower Ground Floor: reception room, kitchen, bedroom, utility room, bathroom.

Location

The property is situated on a residential road close to local shops and amenities. The open spaces of Gillingham Park are within easy reach. Transport links are provided by Chatham rail station.

Tenure / Property Information

Investment Analysis

Historical Land Registry evidence on the same road ranges from £42,000 to £87,000, including £69,500 for 122B and £80,000 and £87,000 for 120 Luton Road. These sales are dated 2015–2017 and exact size, condition, lease terms and service charges are not supplied. A cautious evidence-based base GDV of £70,000 is used, with a £69,500 low scenario and £87,000 high scenario. The 62-year unexpired lease may adversely affect value and mortgageability.

Investment Snapshot

Strategy Recommendation

Potential low-cost BTL or BRRR, subject to legal-pack review, lease valuation and confirmation that the flat is mortgageable. Do not rely on the headline yield until service charges, ground rent, disbursements and the achievable rent are verified.

Works Required

No specific defects or refurbishment requirements are evidenced. Allow for inspection, cleaning and any minor repairs only if identified, but no refurbishment budget is included. Legal review should confirm lease terms, service charge, ground rent and any required consents.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

On the £70,000 base GDV, 75% refinancing equates to £52,500. Against the £41,800 purchase-plus-known-cost figure, this indicates £10,700 cash released before finance costs, tax, works and other completion charges. The calculation is indicative only: the lease length, lender criteria, valuation, rent sustainability and missing property costs may materially reduce or prevent refinancing.

Buy-to-Let Analysis

At the £40,000 guide, the single advertised asking rent of £910 pcm implies £10,920 annual gross rent and a 27.3% gross yield before costs. Using the purchase price plus the £1,800 buyer administration charge gives a 26.1% gross yield on the known-cost total of £41,800. This is not a passing rent, and service charge, ground rent, insurance, finance, tax, voids and disbursements are unknown. The approximately 62-year lease is a material BTL and mortgageability issue.

Flip Analysis

Using the £70,000 base GDV less the £40,000 guide price and £1,800 administration charge produces £28,200 before works, selling costs, finance, tax and other fees. No supported selling-cost allowance or refurbishment budget is available, so a reliable flip surplus cannot be established. The dated comparables and 62-year lease also weaken confidence in the resale assumption.

Investor Risks & Due Diligence

• Approximately 62 years remain on the lease, which may affect value, lender appetite and resaleability.

• The comparable sales are dated 2015–2017 and vary materially from £42,000 to £87,000.

• The £910 pcm figure is an advertised asking rent rather than achieved or passing rent.

• Service charge, ground rent, insurance, lease restrictions and extension costs are not supplied.

• Disbursements and other purchaser completion charges may be payable but are not quantified.

• No condition survey or refurbishment requirements are supplied.

• The high indicative yield is based on the £40,000 guide and may not reflect the eventual auction purchase price.

Recommendation

Potential low-cost BTL or BRRR, subject to legal-pack review, lease valuation and confirmation that the flat is mortgageable. Do not rely on the headline yield until service charges, ground rent, disbursements and the achievable rent are verified.

Strategy Rating

Analysis Confidence

The analysis has a guide price, one advertised rent, an administration charge and several historical same-road sales, but lacks current comparables, achieved rent, condition details, lease financial terms, service charges, ground rent, selling costs and disbursement figures.