30 Claremont South Avenue, Gateshead, Tyne And Wear, NE8 1RJ

Description

A two bedroom ground floor flat situated within an established residential area of Gateshead, offering well proportioned accommodation and an attractive opportunity for both owner occupiers and investors. The property is offered for sale by auction and is likely to appeal to existing or new investors seeking a well located two bedroom apartment with good access to local amenities and transport links. Prospective purchasers are advised to review the legal pack and undertake their own due diligence prior to bidding.

Accommodation

Lounge, kitchen, two bedrooms and a bathroom.

Location

Situated within an established residential area of Gateshead, close to Saltwell Park. Gateshead town centre and Newcastle upon Tyne are both within easy reach, with local amenities, shops and transport links available nearby.

Tenure / Property Information

Investment Analysis

The five supplied Land Registry comparables are leasehold flats on the same road, ranging from £56,000 to £70,000. The two most recent sales, £67,000 and £70,000 in February 2024, support a base GDV of £67,000, with a cautious evidence-based range of £56,000 to £70,000. The property’s exact condition, floor area and lease terms are not supplied.

Investment Snapshot

Strategy Recommendation

Potential income investment only if the tenancy, lease, service charges, condition and achieved rent are verified. Bid cautiously and do not rely on the upper rental evidence or a refurbishment uplift without further due diligence.

Works Required

No specific defects or refurbishment requirements are evidenced. Allow for inspection, compliance checks and any works identified through viewing and the legal pack; no refurbishment allowance has been included in the calculations.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using a £60,000 purchase figure, no evidenced works allowance and the known £3,600 administration charge, base total cost is £63,600. A 75% refinance against the £67,000 base GDV would be approximately £50,250, leaving indicative cash of £13,350 in before finance costs, tax and any unknown fees. The available evidence does not demonstrate sufficient value uplift for a strong BRRR outcome.

Buy-to-Let Analysis

At the £60,000 lower guide, the supplied advertised rental evidence implies approximately 14.5% gross yield at £725 pcm, rising to 24.0% at £1,200 pcm. These are asking rents from NE8 and NE9, not achieved or confirmed passing rent for this tenanted flat. Service charge, ground rent, lease details, tenancy terms and other operating costs are unavailable, so net yield cannot be established.

Flip Analysis

The £56,000–£70,000 comparable range supports a base resale value of £67,000. Against the £63,600 base cost, there is only £3,400 of gross headroom before selling costs, finance, tax and any works. A formal flip surplus cannot be calculated because selling costs and refurbishment costs are unsupported.

Investor Risks & Due Diligence

• Lease length, ground rent and service charge are not supplied.

• The property is tenanted, but passing rent, tenancy terms and arrears position are not supplied.

• Rental evidence is advertised asking rent rather than achieved rent and includes NE9 as well as NE8.

• Condition and any required works are not evidenced.

• Special Conditions of Sale may create additional search, legal, transfer or seller-cost charges beyond the known £3,600 administration charge.

• Comparable values range from £56,000 to £70,000, creating valuation sensitivity.

Recommendation

Potential income investment only if the tenancy, lease, service charges, condition and achieved rent are verified. Bid cautiously and do not rely on the upper rental evidence or a refurbishment uplift without further due diligence.

Strategy Rating

Analysis Confidence

Same-road completed sales provide useful value evidence, but the lease, tenancy income, condition, service charges, property size and special auction costs are not supplied. Rental evidence is advertised rather than achieved and spans different postcode areas.