3 Avon Reach Middleton Road, Salisbury, Wiltshire, SP2 7AY

Description

A first floor 1 Bedroom apartment with allocated parking producing a 9% yield

The property briefly comprises an open lounge/ Dining room/ Kitchen, spacious double bedroom and bathroom

Externally the property benefits from an allocated parking space and communal areas

We have been advised of the following:
Service Charge: £1,200 PA
Ground Rent: £200 PA

The property is currently let at £750 pcm (£9,000 PA) with scope to increase and will be sold with tenants in situ

Situated within walking distance from Salisbury train station and local amenities, the property has strong rental demand for commuters and working professionals

Salisbury is a historic and highly desirable cathedral city offering a fantastic range of shops, cafés, restaurants, schools and leisure facilities. Surrounded by beautiful Wiltshire countryside, the city also benefits from excellent road and rail links, including direct services to London. Its combination of character, amenities and connectivity makes Salisbury a popular choice for homeowners, families and commuters

Tenure: Leasehold

Tenure

Leasehold. There are approximately 106 years unexpired on the lease

Investment Analysis

Investment Snapshot

Guide Price: £100,000+
Desktop Purchase Sensitivity: £100,000–£110,000
Approx. Size: Not established unless confirmed on the individual listing/floorplan
Indicative Works Allowance: £6,000–£18,000
HB Desktop Rent Scenario: approximately £950 pcm / £11,400 p.a.
Gross Yield at Guide on HB Rent Scenario: 11.4%
Suggested Strategy: Buy-to-Let
Risk Level: Medium
Analysis Confidence: Medium-Low pending legal pack and comparable verification

Property & Investment Context

1 Bed Apartment – Salisbury at 3 Avon Reach Middleton Road, Salisbury, Wiltshire, SP2 7AY is being assessed from an investor perspective rather than simply repeating the auction listing. The published guide is the entry reference only and is not assumed to equal market value or the eventual sale price. Salisbury is the principal local market for this appraisal. The asset type, bedroom count where stated, tenure category and guide level determine whether the opportunity is primarily income-led, refurbishment-led, resale-led or development-led.

Works Required

Allow for condition-led internal renewal, statutory compliance and contingency; final scope must follow the photographs, survey and legal pack. The provisional allowance of £6,000–£18,000 is an HB desktop estimate rather than an auctioneer fact. For residential houses the scope should test kitchen and bathroom condition, electrics, heating, windows, roofing, damp, drainage, plastering, flooring, decoration and external fabric. Apartments need equal focus on lease length, ground rent, service charge, planned major works and block-level fire/building compliance because these can materially change the investment case. A 10–15% works contingency is sensible until condition is verified.

Rental & Market Context

The working HB rent scenario is approximately £950 pcm / £11,400 p.a.. This is deliberately labelled as an appraisal estimate, not a quoted tenancy and not a substitute for live comparable evidence. On that scenario the gross yield at guide is 11.4%. Before bidding, rent should be checked against the same bedroom count and property type in the immediate postcode area, then adjusted for condition, parking, outdoor space, building quality, transport and local tenant demand. Where the property is already tenanted, the actual lease/AST, arrears history, deposit protection and rent-review position should override a modelled market rent.

Sold within 5m radius

Recent sold evidence is required to set a defensible GDV and maximum bid. No invented comparables have been inserted. Where a reliable same-street or same-postcode transaction was not established in this pass, GDV remains unconfirmed rather than being calculated as an arbitrary percentage above guide. The evidence hierarchy should be same street first, then sub-1-mile transactions, matched by type, bedrooms, tenure and condition, ideally within the last 12–24 months.

Strategy Recommendation

The preferred initial strategy is Buy-to-Let. For houses, the choice between straight BTL and BRRR depends on whether refurbishment genuinely creates enough end value for a refinance at roughly 75% LTV without leaving excessive cash in the deal. For flats, a lower-capex BTL approach is usually more robust unless lease and service-charge terms are particularly favourable. Land and unusual assets should instead be underwritten to planning status, access, services, abnormal build costs, professional fees and exit value.

Potential BRRR / Exit Position

A full BRRR or flip calculation has not been forced where a reliable GDV is unavailable. Once end value is verified, the test should compare purchase price plus works and acquisition/finance costs against a 75% refinance value, or against net resale proceeds after selling costs. The important investor question is not whether guide plus works is below an assumed GDV, but whether the final capital left in or net profit still meets the required return after SDLT, auction fees, legal fees, finance, holding costs, valuation/broker costs and contingency.

Maximum Bid & Risks

The guide-to-10%-above-guide band of £100,000–£110,000 is shown as bidding sensitivity only, not as a valuation. A defensible maximum bid should be back-solved from verified end value or stabilised income, less all project costs and the investor's required margin. Principal risks include hidden condition, legal-title restrictions, tenure/service-charge exposure where relevant, financeability, overbidding versus local evidence and works-cost inflation. If verification weakens rent or end-value assumptions, the correct response is to reduce the bid rather than stretch the return assumptions.

Recommendation

This lot warrants further due diligence because the auction guide gives a defined entry point, but the investment decision should be controlled by verified local evidence rather than guide price alone. The next priorities are condition, legal pack, tenure obligations, realistic works, live rental evidence and recent sold comparables. The deal is strongest where purchase remains close to guide and the property can be stabilised without major hidden capital expenditure.