28, Grove Park Crescent, Newcastle Upon Tyne, Tyne and Wear, NE3 1BP

Description

Leasehold second floor flat

Accommodation

Principal bedroom with en-suite, one further bedroom, reception room, kitchen, bathroom/wc

Location

The property is located on Grove Park Crescent which lies off The Grove. Shopping amenities are available locally within Gosforth with a more comprehensive range of amenities found within Newcastle City Centre lying to the south. Public transport links are available at South Gosforth Metro Station located to the east and at Manors Train Station lying to the south along with a network of local bus services serving the surrounding areas. The property is served by road links including the A191 located to the north and the A1 lying to the west. Recreational pursuits are available at Gosforth Central Park located to the west.

Tenure / Property Information

Investment Analysis

Completed sales on the same Crescent range from £180,000 to £295,000, with a median of £260,000. The subject is also a two-bedroom leasehold flat, but its floor area, condition and the comparability of the sales are not supplied. A cautious base GDV of £260,000 is used, with low and high scenarios of £230,000 and £290,000. The £215,000 guide is below the base sales evidence, but the apparent discount must be tested against the unknown service charge, ground rent, condition and any seller fees.

Investment Snapshot

Strategy Recommendation

Potentially suitable for a cautiously underwritten BTL or BRRR purchase if the legal pack confirms acceptable service charges, ground rent and no material defects. Do not rely on the apparent discount or £1,400 rent without verification, and set the bid limit only after obtaining the missing costs and condition information.

Works Required

No refurbishment works are evidenced. Allow for inspection and any necessary decoration, repairs or compliance works only after reviewing the legal pack and viewing the flat; no numerical works allowance is supported.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using the £215,000 guide plus the known £1,800 administration charge, and excluding unknown works and other fees, the indicative base cost is £216,800. At a £260,000 base GDV, 75% refinance is approximately £195,000, leaving an indicative £21,800 of capital in before finance, tax, works and unquantified charges. The result is highly sensitive to the actual valuation and leasehold costs.

Buy-to-Let Analysis

The two supplied two-bedroom rental adverts are asking rents of £1,400 pcm, not achieved or property-specific rents. At this rent, gross income is £16,800 annually, equating to 7.81% on the £215,000 guide and 7.75% on the guide plus the known £1,800 buyer administration charge. Actual net yield cannot be established because service charge, ground rent, management, maintenance, voids and finance costs are unknown.

Flip Analysis

A base GDV of £260,000 indicates a gross uplift over the £215,000 guide, but no refurbishment budget, selling costs, finance costs, taxes or seller fees are supplied. A reliable flip surplus and maximum bid therefore cannot be calculated. The comparable sales also show a wide £180,000–£295,000 range.

Investor Risks & Due Diligence

• Annual service charge and ground rent are unknown, including any review provisions.

• The seller may charge additional completion fees under the Special Conditions of Sale.

• The rental evidence comprises advertised asking rents and is not specific to the subject flat.

• No condition, floor area or refurbishment information is supplied, preventing a supported works allowance.

• The comparable sale prices vary substantially from £180,000 to £295,000.

• Net yield cannot be established without leasehold, operating, finance and void costs.

Recommendation

Potentially suitable for a cautiously underwritten BTL or BRRR purchase if the legal pack confirms acceptable service charges, ground rent and no material defects. Do not rely on the apparent discount or £1,400 rent without verification, and set the bid limit only after obtaining the missing costs and condition information.

Strategy Rating

Analysis Confidence

There are several recent same-street completed sales and two indicative rental adverts, but the subject's size, condition, service charge, ground rent, seller fees and actual achievable rent are unavailable.