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

Description

Two bedroom second floor flat currently tenanted producing £775 pcm situated in the centre of Dereham. The description also refers to the property as a two bedroom first floor flat. It is described as a well maintained, light and airy spacious flat with allocated parking space, currently managed by a local agent and producing £9,300 per annum. Some improvements to update the flat and extend the lease would improve the value. The owner is also selling another vacant two bedroom flat on the first floor in the same block in this auction.

Accommodation

Spacious communal entrance hall with phone entry system, entrance hall, generous sitting room leading into open kitchen, two double bedrooms and bathroom.

Location

Situated in the centre of Dereham, Norfolk.

Tenure / Property Information

Investment Analysis

Same-block completed sales supplied range from £70,000 to £95,000 between 2019 and 2021. An indicative base GDV of £80,000 is used, with £70,000 low and £95,000 high scenarios. The 57-year lease, lack of current valuation evidence and unknown lease-extension cost create material uncertainty; the stated improvements and lease extension may improve value but are not costed.

Investment Snapshot

Strategy Recommendation

Treat primarily as a tenanted income purchase only if the buyer accepts the short lease and obtains satisfactory lease-extension, service-charge and tenancy information. Do not rely on a flip or refinance strategy until those costs and valuation impacts are confirmed.

Works Required

Update the flat as described by the auctioneer and investigate/undertake a lease extension. No specific defects or works costs are supplied, so no refurbishment allowance is assumed.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the £75,000 guide plus the supplied £2,340 buyer and admin charges gives a known-cost basis of £77,340 before works and other disbursements. At the £80,000 base GDV, 75% refinance is £60,000, leaving indicative cash of £17,340 tied up before finance and tax. The short 57-year lease and unknown extension cost make refinancing and valuation uncertain.

Buy-to-Let Analysis

At the £75,000 guide, the stated passing rent of £775 pcm produces £9,300 annually and a gross yield of 12.4%. Including the £1,140 buyer premium and £1,200 admin charge, the gross yield is approximately 12.02% on the £77,340 known-cost basis. This excludes management, maintenance, service charges, finance, tax, legal/disbursement costs and any lease-extension cost; no net yield can be established.

Flip Analysis

The supplied same-block sales support a broad £70,000–£95,000 value range, with an indicative £80,000 base GDV. A flip surplus cannot be calculated reliably because refurbishment, lease-extension, selling and additional legal/disbursement costs are not supplied.

Investor Risks & Due Diligence

• Only 57 years remain on the lease; extension cost and terms are not supplied.

• Refurbishment and lease-extension costs are unknown.

• Additional Special Conditions disbursements may be payable but are not quantified.

• The property description conflicts on whether the flat is first or second floor.

• Gross yield excludes operating costs, finance, tax and management costs.

• The supplied comparable sales date from 2017 to 2021 and may not reflect current value.

Recommendation

Treat primarily as a tenanted income purchase only if the buyer accepts the short lease and obtains satisfactory lease-extension, service-charge and tenancy information. Do not rely on a flip or refinance strategy until those costs and valuation impacts are confirmed.

Strategy Rating

Analysis Confidence

Passing rent, auction charges and several same-block completed sales are supplied, but there is no current rental comparable, no works or lease-extension cost, no service-charge information and no current valuation evidence.