2 Loscoe Road, Heanor, Derbyshire, DE75 7FF

Description

A substantial freehold property comprising six self-contained flats together with a range of outbuildings and adjoining land. Planning permission was granted by Amber Valley Borough Council under reference AVA/2018/0155 in June 2018 for demolition of the existing outbuildings, erection of two semi-detached three-bedroom dwellings, change of use to provide a two-bedroom maisonette and change of use of the existing retail unit to provide a three-bedroom self-contained flat. The residential conversions have been completed and are understood to have created two additional flats. The approved two semi-detached dwellings remain to be constructed.

Accommodation

Flat 1: one bedroom, open-plan living room and kitchen, bathroom/WC; EPC D; Council Tax Band A; held on a tenancy at £640 pcm. Flat 2: one bedroom, open-plan living room and kitchen, bathroom/WC; EPC D; Council Tax Band A; held on a tenancy at £700 pcm. Flat 3: one bedroom, open-plan living room and kitchen, bathroom/WC; EPC D; Council Tax Band A; held on a tenancy at £600 pcm. Flat 4: one bedroom, open-plan living room and kitchen, bathroom/WC; EPC D; Council Tax Band A; held on a tenancy at £700 pcm. Flat 5: three bedrooms, kitchen, reception room, bathroom/WC; EPC TBA; Council Tax Band A; vacant. Flat 6: two bedrooms, open-plan living room and kitchen, bathroom/WC; EPC TBA; Council Tax Band A; vacant.

Location

Situated on Loscoe Road (A6007) within Heanor town centre, close to local shopping and transport facilities. Langley Mill Station is approximately 1 mile away. Road links include the A6007, A608 and nearby M1 motorway. Heanor town centre provides shops, supermarkets, cafés, bars and restaurants. Recreational amenities include Shipley Country Park and the surrounding Derbyshire countryside.

Tenure / Property Information

Investment Analysis

The £350,000 guide is the only supplied price evidence. No completed-sale comparables, external rental comparables, GDV assessment or development-cost evidence is provided, so a supported market value or maximum bid cannot be established. The property has four tenanted flats producing £2,640 pcm, while Flats 5 and 6 are vacant and the two permitted semi-detached houses remain unbuilt.

Investment Snapshot

Strategy Recommendation

Treat as an income-led acquisition with development upside only if legal, planning, construction-cost and vacant-flat due diligence supports the numbers. Do not bid on the development potential without independent appraisal and contractor pricing.

Works Required

No general refurbishment allowance is supported by the evidence. The principal identified project is construction of the two permitted semi-detached three-bedroom houses. Due diligence should verify the planning permission, completed flat conversions, EPC position for Flats 5 and 6, parking and heating arrangements, but no costs are assumed.

Rental & Market Context

Potential BRRR Position

A BRRR assessment cannot be completed because there is no supported GDV, refurbishment or construction-cost evidence. The known £1,800 buyer administration charge is payable, while any seller charges remain unknown. Refinancing at 75% of GDV therefore cannot be calculated.

Buy-to-Let Analysis

The four existing tenancies provide known gross income of £2,640 pcm (£31,680 annually), equivalent to a 9.05% gross yield against the £350,000 guide, before operating costs, finance, voids and any buyer or seller charges. This is not a whole-property yield because Flats 5 and 6 are vacant and no supported rents are available for them. Tenancy terms are also unspecified.

Flip Analysis

A flip or development-resale surplus cannot be established. The evidence confirms planning permission for two semi-detached houses, but provides no build cost, end values, professional fees, finance costs, sales costs or supported GDV. The existing flats also have no supplied comparable evidence.

Investor Risks & Due Diligence

• Flats 5 and 6 are vacant and their achievable rents are unsupported.

• Tenancy terms for Flats 1–4 are unspecified.

• The two permitted semi-detached houses remain unbuilt; no construction-cost or end-value evidence is supplied.

• Flats 5 and 6 have EPC ratings listed as TBA.

• Parking and heating information requires confirmation from the auction centre.

• Additional seller fees may be payable under the Special Conditions of Sale.

• The £1,800 buyer administration charge is payable in addition to the purchase price.

• No sufficiently specific external rental comparables or completed-sale comparables are supplied.

Recommendation

Treat as an income-led acquisition with development upside only if legal, planning, construction-cost and vacant-flat due diligence supports the numbers. Do not bid on the development potential without independent appraisal and contractor pricing.

Strategy Rating

Analysis Confidence

Known rents and tenure are available for four flats, but there are no sale comparables, external rents for the vacant flats, GDV, works costs, development costs, tenancy terms or complete fee information.