141-142 High Street, Lowestoft, Suffolk

Description

High yielding freehold residential investment comprising eight flats let producing over £51,000 pa. Known as Logun Court, this modern block of flats was built in 2007. It comprises eight let flats producing £50,868 pa. In addition there is £150 pa ground rent income from flat 6 and 8 and the high street shop which were sold off on long leases. Flat 6 sold for £91,000 in 2019 and flat 8 for £111,000 in 2023 giving an investor scope to sell the 8 flats off individually. This is an ideal opportunity for an investor looking for a high yielding investment or to sell the flats off individually.

Accommodation

Flat 1: two bedroom, 58 sq m mid-floor flat let at £632 pcm (£7,584 pa). Flat 2: one bedroom, 57 sq m mid-floor flat let at £500 pcm (£6,000 pa). Flat 3: one bedroom, 44 sq m top-floor flat let at £515 pcm (£6,180 pa). Flat 4: one bedroom, 44 sq m mid-floor flat let at £485 pcm (£5,820 pa). Flat 5: two bedroom, 59 sq m ground-floor flat let at £632 pcm (£7,584 pa). Flat 7: one bedroom, 58 sq m flat with parking space let at £565 pcm (£6,780 pa). Flat 9: two bedroom, 40 sq m top-floor flat let at £535 pcm (£6,420 pa). Flat 10: two bedroom, 44 sq m top-floor flat let at £625 pcm (£7,500 pa). Four flats are located above and behind the high street shop at the front and four are located at the rear accessed from Gun Lane.

Tenure / Property Information

Investment Analysis

No completed sale comparables, capital value evidence or supported investment yield assumption is supplied, so GDV and individual-flat market value cannot be established. The £480,000 guide equates to approximately 10.63% gross yield on the stated £51,018 annual income, before operating costs, finance, tax and unknown auction disbursements.

Investment Snapshot

Strategy Recommendation

Prioritise income-led ownership subject to full legal, tenancy, condition and operating-cost due diligence. Do not underwrite an individual-flat sell-off or refinance strategy without current valuation evidence and confirmed disposal/refinance assumptions.

Works Required

No refurbishment works are specified. Allow for condition, compliance, tenancy, title and lease review; any physical works remain unquantified pending inspection and the legal pack.

Rental & Market Context

Potential BRRR Position

A BRRR assessment cannot be completed because no GDV, supported refurbishment budget, lending terms or refinance valuation evidence is supplied. The property has established rental income, but the amount recoverable on refinance is unsupported.

Buy-to-Let Analysis

The stated passing income is £50,868 per annum from eight flats plus £150 per annum ground rent, totalling £51,018 per annum. Against the £480,000 guide, this is a 10.63% gross yield, or approximately 10.60% against the guide plus the known £1,200 administration charge. This is before management, maintenance, insurance, voids, compliance, finance, tax and other auction costs. The income is described as existing rent, including three council lets and five individual lets, but tenancy terms and net operating costs are not supplied.

Flip Analysis

A flip or individual-flat disposal strategy cannot be reliably quantified. Flat 6 and flat 8 sale prices are supplied, but no current completed-sale evidence for the retained eight flats, disposal costs, vacant-possession assumptions or individual-flat GDV is provided. Any resale surplus is therefore unsupported.

Investor Risks & Due Diligence

• Additional search fees, seller-cost reimbursements, legal fees, transfer fees and legal-pack disbursements are unspecified.

• The stated yield is gross and does not account for operating expenses, voids, maintenance, insurance, management, finance or tax.

• Tenancy agreements, rent review provisions, deposits, arrears and council-let terms are not supplied.

• The property includes flats and a shop sold off on long leases; lease terms, service-charge arrangements and title details require review.

• Individual-flat resale values cannot be established from the supplied evidence.

• No refurbishment or condition budget is supplied.

Recommendation

Prioritise income-led ownership subject to full legal, tenancy, condition and operating-cost due diligence. Do not underwrite an individual-flat sell-off or refinance strategy without current valuation evidence and confirmed disposal/refinance assumptions.

Strategy Rating

Analysis Confidence

The property description provides detailed current rents, occupancy and tenure information, but there are no sold comparables, net operating costs, refurbishment costs, full auction costs, tenancy terms or supported GDV evidence.