12A Aldiss Court High Street, Dereham, Norfolk, NR19 1TS

Description

This two bedroom second floor flat with allocated parking space is situated in the centre of Dereham and would make an ideal turn key investment. Currently vacant, the flat has the potential to yield £9,300 pa. This spacious flat is light and airy and well maintained. Offered for sale with 57 years remaining on the lease which can be extended, however suitable for cash buyers only because of this. Some improvements to update the flat and extend the lease would increase the value.

Accommodation

Spacious communal entrance hall with phone entry system, entrance hall, generous sitting room which leads to the kitchen, two bedrooms and bathroom. The accommodation is also described as an entrance hall, large sitting room that extends L shaped into the kitchen, two bedrooms, kitchen and bathroom.

Location

Situated in the centre of Dereham, Norfolk.

Tenure / Property Information

Investment Analysis

Same-building leasehold sales range from £64,000 to £95,000, with the latest supplied sale at £95,000 in July 2021. The subject has 57 years remaining, is vacant and described as well maintained, but the lease-shortening effect and unknown extension cost create material uncertainty. A cautious evidence-based HB range is £70,000–£95,000, with £80,000 used as the base GDV estimate.

Investment Snapshot

Strategy Recommendation

Proceed only if the legal pack confirms acceptable lease-extension terms and total costs. The rent appears attractive against the guide, but the short lease, cash-only position and unquantified costs make this unsuitable for an assured leveraged BRRR or confident flip at the current evidence level.

Works Required

Potentially update the flat as described by the auctioneer. Investigate and, if viable, extend the lease. No quantified refurbishment or lease-extension allowance is supplied, so costs cannot be estimated reliably.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £80,000 base GDV, a 75% refinance is £60,000. However, the property is stated to be suitable for cash buyers only because of the 57-year lease, and lease-extension, refurbishment, finance and other acquisition costs are unknown. Cash left in and refinance viability therefore cannot be calculated reliably.

Buy-to-Let Analysis

The auctioneer estimates rent at £775 pcm (£9,300 annually), implying 12.4% gross yield against the £75,000 guide price before the £1,200 admin charge and other costs. Supplied rental listings are £850–£1,000 pcm but relate to houses, so they are not directly comparable to this flat. Net yield cannot be established without service charges, lease costs, refurbishment, legal costs and other outgoings.

Flip Analysis

The supplied same-building sales support a broad £70,000–£95,000 value range, but the short lease and unknown extension cost make resale economics uncertain. A flip surplus cannot be calculated because refurbishment, lease-extension, legal, selling and other costs are not supplied.

Investor Risks & Due Diligence

• Only 57 years remain on the lease; extension cost and terms are unknown.

• The property is stated to be suitable for cash buyers only, limiting conventional mortgage and refinance options.

• The £1,200 non-refundable admin charge applies, with further possible fees and costs unspecified.

• No service charge, ground rent or other lease liabilities are supplied.

• The auctioneer rent is an estimate rather than passing rent, and comparable rental listings relate to houses.

• Refurbishment requirements are described only generally and are not costed.

Recommendation

Proceed only if the legal pack confirms acceptable lease-extension terms and total costs. The rent appears attractive against the guide, but the short lease, cash-only position and unquantified costs make this unsuitable for an assured leveraged BRRR or confident flip at the current evidence level.

Strategy Rating

Analysis Confidence

There are same-building completed sales, a guide price and an auctioneer rent estimate, but no service charges, lease-extension cost, refurbishment budget, selling costs or full legal-pack costs. Rental listings are also for houses rather than flats.