2, Waveney Road, PETERLEE, County Durham

Description

Leasehold first floor flat with two bedrooms, reception room, kitchen and bathroom/wc.

Accommodation

Two bedrooms, reception room, kitchen, bathroom/wc

Location

The property is located on Waveney Road, off Passfield Way. Shopping amenities are available in Peterlee Town Centre, with further shops, bars and restaurants in Sunderland City Centre to the north and Durham City Centre to the west. Public transport links include Horden Train Station to the east and local bus services. The A19 is located to the west. Recreational pursuits are available locally.

Tenure / Property Information

Investment Analysis

The only sold comparables are for the same road/address but date from 2002–2008, so they do not provide a reliable current market value. The £20,000 guide is not a valuation. Current GDV, refurbishment cost and maximum bid cannot be supported from the evidence supplied.

Investment Snapshot

Strategy Recommendation

Proceed only subject to satisfactory lease, legal, condition and rental due diligence. The guide-versus-advertised-rent arithmetic is attractive, but the missing leasehold and cost information makes a firm investment decision inappropriate.

Works Required

No specific defects or refurbishment requirements are evidenced. Obtain a viewing/survey and verify heating, parking, lease terms and any repair obligations before budgeting works.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot be completed because current GDV, works cost, lease length, service charge, ground rent and other completion costs are unknown. Refinance proceeds and cash left in are therefore unsupported.

Buy-to-Let Analysis

The advertised asking rent is £495 pcm, implying £5,940 per year and a 29.7% gross yield against the £20,000 guide price. This is not a net or all-in yield: the £1,800 inclusive-of-VAT contract documentation fee, unknown leasehold charges, possible seller fees, finance, maintenance, voids and letting costs are excluded. The advertised rent is not an achieved rent, and lease suitability remains unconfirmed.

Flip Analysis

A flip surplus cannot be calculated. The available comparable evidence is historic and no current GDV, works allowance, selling costs or lease details are supplied.

Investor Risks & Due Diligence

• Lease length, ground rent, service charge, review provisions and ground-rent increases are unknown.

• The £1,800 contract documentation fee applies, and additional seller fees may be payable under the Special Conditions of Sale.

• The £495 pcm figure is an advertised asking rent rather than achieved or passing rent.

• Current condition, heating and parking arrangements are not evidenced.

• Historic comparable sales from 2002–2008 may not reflect current value.

Recommendation

Proceed only subject to satisfactory lease, legal, condition and rental due diligence. The guide-versus-advertised-rent arithmetic is attractive, but the missing leasehold and cost information makes a firm investment decision inappropriate.

Strategy Rating

Analysis Confidence

The guide price, contract documentation fee, one advertised rent and historic same-road sales are available, but current valuation, condition, lease details, service charges, ground rent, seller fees and achieved rental evidence are missing.