21 Sugley Street, Newcastle upon Tyne, Tyne and Wear, NE15 8RS

Description

An excellent opportunity to acquire a spacious three-bedroom mid-terraced property, situated on Sugley Street, which is a great tenanted investment achieving £700 per calendar month and rent up to date. The property provides generously proportioned accommodation extending to approximately 964 sq ft (89.5 sq m) and appears to have been well maintained throughout, with neutral décor, modern floor coverings and double glazing. With its generous accommodation and presentation allowing a purchaser to occupy or potentially let the property with minimal initial works, this represents an appealing opportunity for investors and owner-occupiers alike.

Accommodation

Ground floor: spacious front bedroom, living/dining room, fitted kitchen with a range of contemporary units and integrated cooking facilities, and a bathroom with three-piece suite. First floor: two generously sized bedrooms, both offering good usable space and built-in storage. Enclosed yard to the rear.

Location

Situated on Sugley Street, Newcastle upon Tyne, Tyne and Wear.

Tenure / Property Information

Investment Analysis

The strongest evidence is the completed sale of 19 Sugley Street at £79,400 in March 2024. The subject property is also recorded at £94,000 in 2006, but that sale is historic and less reliable for current value. A base GDV of £80,000 is therefore used, with a low scenario of £79,400 and a high scenario of £94,000. The guide represents a substantial discount to the supported current-area evidence, subject to legal, tenancy and condition verification.

Investment Snapshot

Strategy Recommendation

Prioritise as a hold-to-let acquisition if the tenancy, rent, title and property condition are verified. The existing £700 pcm rent supports a strong gross yield at the guide, while the limited evidence does not justify underwriting a flip or a refurbishment-led strategy.

Works Required

The property is described as well maintained, with neutral décor, modern floor coverings, double glazing, contemporary kitchen units and a three-piece bathroom. No specific refurbishment defects or quantified works are evidenced. Allow for inspection and only minor presentation or compliance works if required; a refurbishment budget cannot be supported from the supplied evidence.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £60,000 guide, the purchase plus the known £3,600 admin charge is £63,600 before any unquantified works or additional fees. At the £80,000 base GDV, 75% refinancing equates to £60,000, implying approximately £3,600 of cash remaining in before finance, tax and other acquisition costs. Actual refinance proceeds depend on lender valuation, tenancy evidence, affordability and full project costs.

Buy-to-Let Analysis

The property is tenanted with rent stated as £700 pcm and rent up to date, producing £8,400 annual rent. This gives a 14.00% gross yield on the £60,000 guide and 13.21% on the stated purchase plus the £3,600 admin charge only. Rental listings indicate asking rents of £775–£925 pcm, but these are not achieved rents and may not be directly comparable. Net yield cannot be established because financing, management, insurance, maintenance, voids and other costs are unavailable.

Flip Analysis

A base GDV of £80,000 against the guide and known admin charge indicates £16,400 gross headroom before selling costs, finance, tax, legal costs, unknown buyer costs and any works. No supported refurbishment budget or selling allowance is available, so a reliable flip surplus and maximum bid cannot be calculated. The high £94,000 scenario relies on a historic 2006 subject-property sale and should not be treated as a current valuation without further evidence.

Investor Risks & Due Diligence

• The property is tenanted, so tenancy terms, deposit protection, arrears position and vacant-possession requirements must be verified.

• The £700 pcm rent is supplied by the auction description and should be independently evidenced despite the statement that it is up to date.

• The £775–£925 pcm rental evidence comprises advertised asking rents, not achieved rents, and may not be directly comparable.

• Additional search, seller, legal, transfer, buyer-premium and disbursement costs may apply and are not quantified.

• No detailed survey or quantified refurbishment allowance is supplied.

• The high GDV scenario is based mainly on a historic 2006 sale and is not reliable without current valuation evidence.

• Refinance proceeds are not guaranteed and may be affected by lender valuation, tenancy assessment and total costs.

Recommendation

Prioritise as a hold-to-let acquisition if the tenancy, rent, title and property condition are verified. The existing £700 pcm rent supports a strong gross yield at the guide, while the limited evidence does not justify underwriting a flip or a refurbishment-led strategy.

Strategy Rating

Analysis Confidence

The analysis has a recent same-street completed sale, stated passing rent, guide and known admin charge. However, there is only one recent comparable, no quantified works, no full fee schedule, no tenancy documentation and no verified achieved rental comparables.