21 May Street, Barrowford, Nelson, Lancashire BB9 8NZ

Description

Tenanted two bed terraced house, let at £625 pcm (£7,500 pa). The property has not yet been inspected by Auction House, but is understood to be a tenanted two bed mid-terrace house. Property is 60m² as taken from the EPC. Enclosed paved yard to the rear.

Accommodation

UPVC entrance door leading into lounge, dining kitchen and staircase leading to the first floor; bedroom one; bedroom two; bathroom. Outside: enclosed paved yard to the rear.

Tenure / Property Information

Investment Analysis

The five supplied completed sales on May Street range from £110,000 to £165,000. A base GDV of £120,000 is supported by the £120,000 sale at 29 May Street and is used cautiously because the subject property has not been inspected and the comparable prices vary materially. A low scenario of £110,000 and high scenario of £165,000 reflect the supplied comparable range, not a formal valuation.

Investment Snapshot

Strategy Recommendation

Treat as a potential income-led BTL purchase rather than an underwritten flip or BRRR project. Proceed only after reviewing the legal pack and tenancy evidence, confirming all fees, and inspecting or otherwise underwriting the unknown condition and costs.

Works Required

No specific refurbishment works can be supported because the property has not been inspected. Before bidding, verify condition, tenancy documentation, compliance, the legal pack and any required repairs. The description confirms a lounge, dining kitchen, two bedrooms, bathroom and enclosed paved rear yard.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £120,000 base GDV, 75% refinancing equates to £90,000. This is £12,000 above the £78,000 guide before the known minimum £3,600 administration charge, refurbishment, buyer premium, finance, tax and other costs. Because the property is uninspected and works and several acquisition costs are unknown, the cash-out position and viability cannot be confirmed. The long lease and £1 ground rent are positive documented tenure features.

Buy-to-Let Analysis

The stated rent is £625 pcm (£7,500 pa), producing a headline gross yield of 9.62% against the £78,000 guide. The £650 pcm rental listing implies 10.00% against the guide, but this is an advertised asking rent rather than achieved rent. Net yield and total-cost yield cannot be established because refurbishment costs, buyer premium and disbursements are unknown. Confirm the tenancy terms, rent payment history and tenant status.

Flip Analysis

The supplied comparable sales support a broad £110,000–£165,000 value range, with £120,000 used as the base GDV. A flip surplus cannot be calculated because refurbishment costs, buyer premium, disbursements, finance costs and selling costs are not supplied. The property is tenanted, which may also affect possession and resale timing.

Investor Risks & Due Diligence

• The property has not yet been inspected, so condition and refurbishment requirements are unknown.

• Buyer premium amount is unspecified and additional disbursements, seller costs, legal fees, transfer fees and search fees may apply.

• The stated £625 pcm rent is supplied as current letting information, while the £650 pcm evidence is only an advertised asking rent.

• Tenancy terms, rent payment history, deposit and possession position are not supplied.

• Service charge amount is not stated despite the property being leasehold.

• Comparable completed prices vary from £110,000 to £165,000, creating material GDV uncertainty.

• The minimum administration charge is £3,600 including VAT, with 2.75% applying subject to that minimum.

Recommendation

Treat as a potential income-led BTL purchase rather than an underwritten flip or BRRR project. Proceed only after reviewing the legal pack and tenancy evidence, confirming all fees, and inspecting or otherwise underwriting the unknown condition and costs.

Strategy Rating

Analysis Confidence

Completed comparable sales and stated rent are available, but the property has not been inspected; refurbishment costs, buyer premium, disbursements, service charge, tenancy details and total acquisition costs are incomplete.