21 Brecon Place, Pelton, Chester le Street, County Durham, DH2 1HY

Description

A three bedroom end-terraced house offered for sale by auction, currently let at £700 per calendar month, making it an opportunity for investors seeking a property with an existing tenant in situ. The property is currently let at £700 per calendar month, producing an annual rental income of £8,400 to longstanding tenants.

Accommodation

Entrance hall, living room, separate dining room and kitchen. The second floor provides three bedrooms, a bathroom and landing. Externally, there is a front lawned garden and a private rear garden.

Location

Pelton, Chester le Street, County Durham

Tenure / Property Information

Investment Analysis

The five supplied same-street terraced comparables range from £68,500 to £119,950. The median is £92,000, used as the base GDV. The spread is significant and the evidence does not confirm the subject property's condition, floor area, tenure or specification, so the low and high scenarios use the observed comparable range rather than a formal valuation.

Investment Snapshot

Strategy Recommendation

Potential income-led BTL, subject to satisfactory legal-pack review, tenancy verification, inspection and confirmation of all auction fees. Do not rely on the refinance or flip case until condition and full costs are known.

Works Required

No refurbishment works are evidenced. Verify the reported new boiler installation and inspect the property, tenant occupation, gardens and general condition before bidding. Any required works remain unquantified.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At an £80,000 purchase assumption plus the £3,600 known admin charge, the base cost is £83,600 before any unknown works or other fees. A 75% refinance of the £92,000 base GDV is £69,000, leaving indicative cash of £14,600 in the property before finance, tax and unquantified costs. The strategy depends on lender valuation, tenancy documentation, condition and actual refinance terms.

Buy-to-Let Analysis

At the stated passing rent of £700 pcm, annual rent is £8,400. Buying at the £80,000 midpoint of the guide produces a 10.50% gross yield; including the £3,600 known admin charge, the yield is 10.05%. This excludes unknown legal, search, transfer, buyer premium, finance, insurance, maintenance, management and void costs. The rent is stated as passing rent, but tenancy terms, arrears status and deposit information are not supplied.

Flip Analysis

Using the £92,000 base GDV against the £83,600 known-cost base leaves £8,400 before selling costs, finance, tax, unknown works and other auction-related fees. No supported selling allowance or refurbishment budget is available, so a net flip surplus cannot be established. The comparable range creates material valuation risk.

Investor Risks & Due Diligence

• Tenure is stated as subject to the legal pack and is not confirmed as freehold.

• Special Conditions may impose additional search, seller-cost, legal, transfer, buyer-premium or disbursement charges.

• Property condition and any required works are not evidenced; the stated new boiler installation should be verified.

• Tenancy agreement, deposit, rent-payment history, arrears and possession position are not supplied.

• The comparable sale range is wide, creating uncertainty around achievable GDV.

• Refinance assumptions depend on lender valuation and terms, which are not supplied.

• Gross yields exclude finance, insurance, maintenance, management, voids, tax and other ownership costs.

Recommendation

Potential income-led BTL, subject to satisfactory legal-pack review, tenancy verification, inspection and confirmation of all auction fees. Do not rely on the refinance or flip case until condition and full costs are known.

Strategy Rating

Analysis Confidence

The current rent, guide range, admin charge and five local completed sales are supplied, but tenure, condition, tenancy terms, full auction costs, property inspection evidence and external rental comparables are missing.