165A Darkes Lane, Potters Bar, Hertfordshire, EN6 1BW

Description

A First and Second Floor Five Bedroom Licensed HMO Fully Let Producing £43,200 Per Annum (Reflecting a Gross Initial Yield of 12.3%). The property comprises a first and second floor five bedroom HMO situated within a mid terrace building arranged over ground and two upper floors.

Accommodation

First Floor: Reception Room, Kitchen, Letting Room. Second Floor: Four Letting Rooms, Bathroom, Shower Room.

Location

The property is situated on a mixed use road close to local shops and amenities. The open spaces of Parkfield Open Space are within easy reach. Transport links are provided by Potters Bar rail station.

Tenure / Property Information

Investment Analysis

The £350,000+ guide is broadly consistent with the stated £43,200 annual income and 12.3% gross initial yield: £43,200 ÷ £350,000 = 12.34%. No completed sales, external rental comparables or independent GDV evidence were supplied, so market value and GDV cannot be independently established. The £1,800 administration charge is known; disbursements and other special-condition costs are unknown.

Investment Snapshot

Strategy Recommendation

Consider as an income-led BTL/HMO acquisition only if the £43,200 rent, tenancy schedule, HMO licence, operating costs and legal pack are verified. Do not bid beyond a separately calculated maximum after allowing for unknown disbursements and compliance costs.

Works Required

No refurbishment defects or required works are evidenced. Obtain the legal pack, inspection and compliance information before budgeting any remedial, maintenance or HMO-related works.

Rental & Market Context

Potential BRRR Position

A BRRR assessment cannot be completed because no GDV, refurbishment budget, refinancing valuation or lending assumptions were supplied. The long lease is a positive tenure feature, but refinanceability and value still require independent valuation and lender/HMO due diligence.

Buy-to-Let Analysis

The property is stated to be fully let at £43,200 per annum, equivalent to £3,600 per month. At the £350,000 guide, the gross yield is approximately 12.34%, consistent with the auctioneer's stated 12.3%. Net yield cannot be calculated because operating costs, finance costs, taxes, maintenance, management and compliance costs were not supplied. The income and tenancy evidence should be verified in the legal pack.

Flip Analysis

A flip appraisal is unsupported because there are no completed sales, independent GDV, refurbishment costs or selling-cost allowance. The property is described as fully let, so vacant possession, tenancy and HMO compliance matters would also need review before considering resale.

Investor Risks & Due Diligence

• The £43,200 annual income and fully let status are stated evidence and should be independently verified.

• Gross yield excludes management, maintenance, utilities, compliance, finance, tax and other operating costs.

• Additional disbursements and special-condition charges may be payable but are unspecified.

• No EPC, council tax, parking or heating information was supplied.

• HMO licensing, tenancy documentation and compliance obligations should be checked in the legal pack.

• The property is leasehold, so lease terms, covenants, consent requirements and service-charge liabilities should be verified.

Recommendation

Consider as an income-led BTL/HMO acquisition only if the £43,200 rent, tenancy schedule, HMO licence, operating costs and legal pack are verified. Do not bid beyond a separately calculated maximum after allowing for unknown disbursements and compliance costs.

Strategy Rating

Analysis Confidence

The stated rent, occupancy, lease term, guide price and administration charge support a basic gross-yield calculation, but there are no sales comparables, external rental evidence, GDV, works budget, operating costs or complete fee schedule.