18, J Shed, Kings Road, Swansea, West Glamorgan

Description

Leasehold first floor split level flat. Upon Instruction of AMG.

Accommodation

Mezzanine bedroom, reception room open plan to kitchen, bathroom/wc

Location

The property is located on Kings Road. A comprehensive range of shops, bars and restaurants can be found within Swansea City Centre lying to the west. Public transport links can be found at Swansea Train Station (GWR and Transport for Wales services) along with a network of local bus services serving the surrounding areas. The property is served by road links including the A4067 lying to the west and the A483 located to the north. Recreational pursuits can be found locally.

Tenure / Property Information

Investment Analysis

The most relevant evidence is the same J Shed development: £120,000 in December 2022 and £157,500 in April 2020. Older 2005 sales at £185,000 are less reliable for current value. A base GDV of £138,750 uses the midpoint of the two more recent same-development sales, with a supported evidence range of £120,000 to £157,500. The £120,000 guide is broadly aligned with the lower comparable. No service charge, ground rent, seller fees or parking/heating details are supplied.

Investment Snapshot

Strategy Recommendation

Potential BTL at the guide price, subject to confirming achievable rent, service charge, ground rent, lease terms and property condition. Do not bid on the basis of the base GDV or refinance surplus without valuation and legal due diligence.

Works Required

No specific defects or refurbishment works are described. Allow for inspection and verification of the EPC E position, heating, kitchen, bathroom, lease terms, service charge and ground rent before bidding. No refurbishment allowance is included in the financial calculations.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the guide plus the known £1,800 documentation fee, the base acquisition cost is £121,800 before any unknown seller fees or refurbishment. A 75% refinance against the base GDV of £138,750 would provide an indicative £104,062.50, leaving approximately £17,737.50 unrecovered before finance, tax and other costs. The refinance case is therefore dependent on achieving the base valuation and acceptable lender treatment of the leasehold, EPC and service charges.

Buy-to-Let Analysis

Using the midpoint of the supplied advertised asking rents, £730 pcm produces annual rent of £8,760 and a gross yield of 7.3% on the £120,000 guide, or 7.19% including the known £1,800 documentation fee. The evidence range of £560-£900 pcm implies approximately 5.6%-9.0% gross yield on the guide. These are advertised rents, not achieved rents, and service charge, ground rent, management, maintenance, voids and financing costs are unknown.

Flip Analysis

Using the base GDV of £138,750 less the guide price and known £1,800 documentation fee gives £16,950 before selling costs, finance, tax, seller fees and any works. A reliable flip surplus cannot be established because no selling allowance or refurbishment budget is supplied. The lower £120,000 comparable would leave no surplus before these additional costs.

Investor Risks & Due Diligence

• Annual service charge and ground rent are not supplied.

• Ground rent review period and increases are unknown.

• Potential seller fees under the special conditions are unknown.

• Rental evidence is advertised asking rent rather than achieved rent.

• EPC is rated E and no improvement requirements or costs are supplied.

• Heating, parking and detailed condition are unconfirmed.

• The base GDV relies on historic comparable sales with a wide price range.

• Finance, tax, selling, management, maintenance and void costs are excluded.

Recommendation

Potential BTL at the guide price, subject to confirming achievable rent, service charge, ground rent, lease terms and property condition. Do not bid on the basis of the base GDV or refinance surplus without valuation and legal due diligence.

Strategy Rating

Analysis Confidence

There are two relevant same-development completed sales and several advertised rental figures, but the sales are historic, rents are asking rents, and key leasehold costs, condition, seller fees and property particulars remain unconfirmed.