13 Hitchen, Merriott, Somerset

Description

Freehold two floor semi-detached, three bed terrace house requiring modernisation. By order of a Major Housing Association.

Accommodation

First floor: Three bedrooms. Ground floor: Reception room, kitchen, bathroom, separate WC. Outside: Front and rear gardens. Gross Internal Area GIA: Approximately 72 sq m (770 sq ft).

Location

The property is situated on Hitchen which is located off Broadway. Public transport links include Crewkerne mainline rail station together with a network of local bus services serving the surrounding vicinity. Road links include the A356 and the A303. Shopping amenities can be found locally within Merriott Village Centre with an extensive range of shops, bars and restaurants being found in Crewkerne and Yeovil. Recreational pursuits can be found locally at the open spaces of Merriott Recreation Ground and the surrounding Somerset countryside.

Tenure / Property Information

Investment Analysis

The strongest directly relevant evidence is the £175,000 sale of a semi-detached freehold property at 90 Hitchen in January 2021. Other Hitchen sales range from £144,000 to £250,000, although the £250,000 sale was described as The New House and may not be directly comparable. A cautious base GDV of £175,000 is adopted, with a supported evidence range of £154,500 to £250,000. The comparables are historic and do not provide verified size, specification or condition details, so the range is indicative only.

Investment Snapshot

Strategy Recommendation

Proceed only subject to full legal, service and condition due diligence, a heating inspection and a contractor-led refurbishment budget. Do not rely on the headline rental yield or GDV uplift to set a bid without these figures.

Works Required

Modernisation is required, but the evidence does not specify the scope or cost. Services are disconnected and the heating condition is unwarranted, so inspection and verification of the heating and other services are required before budgeting works.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the guide price, 75% of the adopted £175,000 base GDV is £131,250. However, the refurbishment allowance, total project cost and finance costs cannot be established from the evidence. The disconnected services and unknown heating condition create additional due-diligence requirements, so a reliable cash-left-in or BRRR return cannot be calculated.

Buy-to-Let Analysis

The advertised asking rent is £1,500 pcm, equivalent to £18,000 annually. Against the £127,500 guide price, this indicates a gross yield of approximately 14.12%. This is based on an asking rent rather than achieved rent and excludes modernisation, finance, tax, maintenance, voids and transaction costs. A yield on total project cost cannot be established because refurbishment costs are not supplied.

Flip Analysis

The adopted base GDV is £175,000, but refurbishment costs, selling costs and a full project cost are unsupported. A reliable flip surplus and maximum purchase price therefore cannot be calculated. The apparent gross value uplift over the guide is not sufficient evidence of profit.

Investor Risks & Due Diligence

• Services are disconnected and the heating system has no warranty or guarantee.

• The property requires modernisation, but no refurbishment scope or cost is supplied.

• The £1,500 pcm figure is an advertised asking rent, not an achieved rent.

• Comparable sales are historic and their size, specification and condition are not provided.

• Potential seller charges under the special conditions are unspecified.

• On-street parking may affect appeal, although no market impact is evidenced.

Recommendation

Proceed only subject to full legal, service and condition due diligence, a heating inspection and a contractor-led refurbishment budget. Do not rely on the headline rental yield or GDV uplift to set a bid without these figures.

Strategy Rating

Analysis Confidence

There are several same-street completed sales and one advertised rental, but the sales are historic, comparable specifications and conditions are not provided, and refurbishment, selling and finance costs are unavailable.