27 Colley Drive, Sheffield, South Yorkshire

Description

Auction House South Yorkshire would like to present this two bedroom apartment located in Sheffield and offered to the market via online auction. Comprising of an entrance hallway leading to a utility room, kitchen, lounge/diner, two bedrooms, and a bathroom. This property is being sold with vacant possession but provides an excellent investment opportunity with rents expected in the £800 region and also being sold furnished, as well as having a low ground rent at £10 per annum and service charge at £33 per annum.

Accommodation

Entrance hallway, utility room, kitchen, lounge/diner, two bedrooms and bathroom.

Location

Excellently situated for local amenities, transport links, parks, walking spots, and schools.

Tenure / Property Information

Investment Analysis

The strongest evidence is the same flat, 27 Colley Drive, which sold for £70,000 in June 2021. Other local leasehold flat sales range from £40,000 to £59,950 but are older and relate to different units. Against the £50,000–£80,000 guide, an evidence-based HB scenario is £70,000–£80,000, with a £75,000 base GDV. No condition defects or refurbishment requirements are evidenced.

Investment Snapshot

Strategy Recommendation

Consider as a buy-to-let only if inspection, lease review and achieved-rent validation support the circa £800 pcm estimate and the winning bid remains sufficiently below the guide midpoint. Avoid relying on a flip strategy without a wider margin.

Works Required

No specific works are supported by the evidence. The apartment is described as furnished, has EPC C, and is offered with vacant possession. Allow for inspection, testing, cleaning and any minor works only after viewing, but no reliable refurbishment budget can be quantified.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using a £65,000 purchase assumption, no quantified refurbishment allowance and the known £3,600 admin charge, the indicative total cost is £68,600. A 75% refinance against the £75,000 base GDV would release approximately £56,250, leaving approximately £12,350 before finance, tax and other costs. The outcome depends heavily on lender valuation, lease acceptability, actual rent and the auction's additional charges.

Buy-to-Let Analysis

Using the auctioneer's estimated rent of approximately £800 pcm, annual gross rent is £9,600. At the £65,000 midpoint of the guide, gross yield is approximately 14.77%; including the known £3,600 admin charge, the indicative yield is approximately 13.99%. This excludes finance, tax, insurance, maintenance, voids and any unknown auction costs. The rental evidence is weak because no specific external rental comparable was identified.

Flip Analysis

At the £75,000 base GDV and £68,600 indicative purchase-plus-known-cost basis, the gross difference is £6,400 before selling costs, finance, tax and any works. A reliable flip surplus cannot be established because selling costs, finance costs and refurbishment requirements are unsupported. The margin is therefore relatively thin.

Investor Risks & Due Diligence

• The £800 pcm figure is an auctioneer estimate rather than a verified achieved rent.

• No sufficiently specific external rental comparable was identified.

• Additional search, seller, legal and transfer fees may apply and are unquantified.

• Property condition and any required works are not evidenced.

• Lease length and other lease terms are not provided, which may affect mortgageability and resale.

• The base valuation relies materially on a 2021 sale of the same property and older nearby comparables.

• The calculated refinance and yields exclude finance, tax, insurance, maintenance and voids.

Recommendation

Consider as a buy-to-let only if inspection, lease review and achieved-rent validation support the circa £800 pcm estimate and the winning bid remains sufficiently below the guide midpoint. Avoid relying on a flip strategy without a wider margin.

Strategy Rating

Analysis Confidence

There is a strong same-address completed sale and several local sales, plus an auctioneer rent estimate. However, the sales evidence is dated, external rental evidence is absent, property condition is not evidenced, and additional auction charges are unspecified.