22 Berry Street, Burnley, Lancashire BB11 2LG

Description

Auction House North West have not inspected but have been advised the property comprises of two reception rooms, galley kitchen, two bedrooms and shower room to the first floor and a loft room currently being used a third bedroom. The property is currently tenanted at £650pcm.

Accommodation

Two reception rooms, galley kitchen, two bedrooms and shower room to the first floor, and a loft room currently being used as a third bedroom.

Tenure / Property Information

Investment Analysis

Same-street completed sales range from £50,000 to £115,000. The two most recent relevant lower/mid-market sales are £80,000 at 49 Berry Street and £75,000 at 37 Berry Street. A base GDV of £80,000 is used, with a low scenario of £75,000 and high scenario of £110,000. The range is uncertain because the subject has not been inspected and comparable property condition and accommodation details are not supplied.

Investment Snapshot

Strategy Recommendation

Consider only as an income-led BTL if the £650 pcm tenancy, condition and legal position are verified. Do not rely on the apparent uplift or bid above a separately costed limit until inspection, legal-pack review and full fees are known.

Works Required

No specific defects or required works are evidenced because the auctioneer has not inspected the property. Allow for inspection and verification of the kitchen, shower room, loft room, services, EPC position and general condition before committing to works.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £65,000 guide, the known minimum admin charge produces a base cost of £68,600 before refurbishment, legal-pack disbursements, other fees and finance costs. A 75% refinance against the £80,000 base GDV would be £60,000, leaving an indicative £8,600 unrecovered before those excluded costs. The strategy depends on the tenancy being genuine and sustainable and on the property requiring no material unquantified works; no refurbishment allowance is supported by the evidence.

Buy-to-Let Analysis

The property is stated to be tenanted at £650 pcm, producing £7,800 per year and a 12.00% gross yield on the £65,000 guide. Using the known minimum £3,600 admin charge, the gross yield on purchase price plus that charge is approximately 11.37%. Rental evidence elsewhere shows advertised asking rents of £304 pcm and £400 pcm for two-bedroom houses, so the current rent should be verified against the tenancy agreement, payment history and local market. Net yield cannot be established because operating costs, finance costs and full purchaser fees are unavailable.

Flip Analysis

Using the £80,000 base GDV, the property shows a £11,400 gross uplift over the £68,600 purchase-plus-known-admin-cost figure, before selling costs, finance, tax, refurbishment and other auction charges. A reliable flip surplus cannot be calculated because refurbishment and selling allowances are unsupported. The wide range of same-street sales and lack of inspection make resale value uncertain.

Investor Risks & Due Diligence

• Auctioneer has not inspected the property, so condition and required works are unknown.

• The loft room is described as being used as a third bedroom, but no evidence confirms its suitability or regulatory status as a bedroom.

• The stated £650 pcm rent must be verified against the tenancy agreement and payment history.

• Rental comparables are advertised asking rents in different locations and may not represent achievable rent for this property.

• The £3,600 minimum admin charge applies, while legal-pack disbursements, seller-cost reimbursement, search, legal and transfer fees may also be payable.

• Same-street completed sales vary materially from £50,000 to £115,000, creating significant valuation uncertainty.

• No parking, heating or detailed property-condition information is supplied.

Recommendation

Consider only as an income-led BTL if the £650 pcm tenancy, condition and legal position are verified. Do not rely on the apparent uplift or bid above a separately costed limit until inspection, legal-pack review and full fees are known.

Strategy Rating

Analysis Confidence

There are several same-street completed sales and a stated current rent, but the property has not been inspected, comparable specifications and condition are incomplete, refurbishment costs are unknown, and additional auction/legal charges are unspecified.