21 Bedford Street, Brighton, East Sussex

Description

Substantially furnished and equipped, including bespoke themed furniture and contents, previously operated as large-group holiday accommodation, arranged to accommodate up to 24 guests, receiving a total of rent of £132,266 in the last financial year. The property has had two Historic Brighton & Hove City Council HMO Licences, covering periods up to May 2011 and May 2016. Wonderland House has featured in national and international media, including the Daily Mail and TheRichest.com.

Accommodation

Lower Ground Floor: Bedroom, Kitchen, Shower Room. Ground Floor: Reception Room, Bedroom, Shower Room. First Floor: Reception Room, Kitchen, Shower Room. Second Floor: Two Bedrooms. Third Floor: Two Bedrooms, WC. Total GIA approximately 167 sq m (1,796 sq ft).

Location

The property is situated on the east side of Bedford Street, to the north of its junction with Marine Parade. Local shops and amenities are available along St James's Street. More extensive shops are situated along The Lanes within Brighton. Brighton station (Southern Railway) is approximately 1.3 miles to the north west. Marine Parade (A259) is readily accessible and provides direct access onto the A23. Brighton Seafront is a short walk to the south.

Tenure / Property Information

Investment Analysis

The available Bedford Street comparables range from £467,000 to £970,000, with a £655,000 sale at 17 Bedford Street. The evidence does not provide comparable sizes, condition, specification or use, so the range is wide and only a broad indication. A base GDV of £655,000 is used, with £467,000 low and £970,000 high scenarios. The £600,000 guide is below the base comparable but leaves limited margin before works, finance, selling costs and tax.

Investment Snapshot

Strategy Recommendation

Proceed only subject to detailed legal, planning, licensing, condition and holiday-use due diligence. Treat the opportunity as a specialist serviced or holiday-accommodation investment rather than assuming a standard six-bedroom BTL. At the guide, margins appear too uncertain for an unconditional flip or BRRR purchase.

Works Required

No specific defects or required works are evidenced. Before bidding, inspect the building, services, kitchens, bathrooms, themed furniture and contents, and verify fire safety, utilities, furnishings and general compliance. Confirm the lawful current use and any requirements for holiday accommodation or HMO operation. No refurbishment allowance can be quantified from the supplied evidence.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the £655,000 base GDV, a 75% refinance figure is approximately £491,250. Against the £600,000 guide this is £108,750 below the purchase price before works, fees, finance and tax. Because no works budget or buyer/admin costs are supplied, cash left in and project equity cannot be calculated reliably. Refinance also depends on valuation, lending criteria and lawful use.

Buy-to-Let Analysis

The two advertised six-bedroom rental listings indicate £3,690–£3,900 pcm, equivalent to £44,280–£46,800 annually. At the £600,000 guide, this indicates a gross yield of approximately 7.38%–7.80%, using advertised asking rents rather than achieved rents. The property was previously operated as large-group holiday accommodation and has no current HMO licence evidence, so conventional BTL suitability, planning, licensing, demand and operating costs require verification.

Flip Analysis

The base GDV of £655,000 provides £55,000 of gross headroom above the £600,000 guide before refurbishment, acquisition costs, finance, selling costs and tax. No condition-based works allowance or selling allowance is supplied, so a reliable flip surplus and maximum bid cannot be calculated. The broad comparable range creates substantial valuation risk.

Investor Risks & Due Diligence

• Previous HMO licences ended in May 2011 and May 2016; current licensing status is not evidenced.

• Lawful current use for large-group holiday accommodation and any planning or licensing requirements are unconfirmed.

• The £132,266 historic rent is not a current passing rent and may reflect a different operating model; no current holiday-accommodation income is supplied.

• Rental evidence consists only of advertised asking rents and may not reflect achievable rent for this property.

• No EPC, condition, heating, parking, council tax or building-services information is supplied.

• Comparable sale prices vary widely and lack size, condition and specification details.

• Buyer, administration, finance, selling and other third-party costs are not quantified.

• The building is vacant, so future income is uncontracted.

Recommendation

Proceed only subject to detailed legal, planning, licensing, condition and holiday-use due diligence. Treat the opportunity as a specialist serviced or holiday-accommodation investment rather than assuming a standard six-bedroom BTL. At the guide, margins appear too uncertain for an unconditional flip or BRRR purchase.

Strategy Rating

Analysis Confidence

There is useful local comparable, accommodation and advertised rent evidence, but no current licence, planning/use confirmation, EPC, condition survey, operating-cost data, buyer fees, works budget or comparable specification details.