308 Pearl Works, Sheffield, South Yorkshire

Description

An opportunity to purchase this superb studio apartment, currently vacant but previously let at £695 per calendar month / £8,340 per annum. Pearl Works also has a pay-as-you-go laundry room and a mini supermarket on the ground floor.

Accommodation

Living area with kitchenette comprising wall and base units, stainless steel sink unit, 2-ring electric hobs, microwave ovens and under-counter fridge; built-in wardrobe; fitted desk unit and double bed; en-suite shower room with WC, wash hand basin and walk-in shower.

Location

Located within the City Centre, within walking distance of the university, train station, shops and restaurants.

Tenure / Property Information

Investment Analysis

Same-building completed sales evidence ranges from £45,000 to £60,000, with a £50,000 sale on 14 October 2025. The £300,000 transaction is an outlier and is not relied upon. A base GDV of £50,000 is used, with £45,000 low and £60,000 high scenarios. Exact unit comparability, lease length, service charge and legal-pack details are not supplied.

Investment Snapshot

Strategy Recommendation

Potentially suitable as a low-cost BTL or BRRR purchase only if the legal pack confirms an acceptable lease term, service-charge position and no material property restrictions. Bid no higher than £30,000 on the supplied evidence, subject to full due diligence.

Works Required

No refurbishment defects or required works are evidenced. The apartment is described as fitted and vacant. Allow for inspection, cleaning and any minor remedial items only after reviewing the property and legal pack; no numeric works allowance is included.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

Using a £30,000 purchase price, no evidenced refurbishment allowance and the £3,600 administration charge, the illustrative base cost is £33,600. At a £50,000 GDV, 75% refinancing is £37,500, implying £3,900 more than the stated base cost before finance, tax and other costs. The result is highly dependent on lender valuation, lease length, service charges, legal-pack liabilities and whether the historic rent remains achievable.

Buy-to-Let Analysis

The property was previously let at £695 pcm, equivalent to £8,340 per annum, but this is historic property-specific rent rather than a current achieved rent and no external rental comparable is supplied. At the £30,000 upper guide, the gross yield is 27.80%; including the £3,600 buyer administration charge, it is 24.82% before service charge, ground rent, management, voids, maintenance, finance, tax and other auction costs. These omitted costs could materially reduce the net return.

Flip Analysis

Using the £50,000 base GDV and £33,600 illustrative acquisition cost, the gross surplus before selling costs, finance, tax and any works is £16,400. No supported selling-cost allowance or refurbishment budget is supplied, so a net flip surplus cannot be established. The £45,000 low-GDV scenario leaves £11,400 before those deductions; the £60,000 high scenario leaves £26,400.

Maximum Bid Indicator

This is an HB screening estimate based on the supplied evidence and HB assumptions. It is not a formal valuation or instruction to bid.

Investor Risks & Due Diligence

• Lease term is not stated and may affect value, mortgageability and resale.

• Service charge and ground rent information is not supplied.

• The £695 pcm figure is historic previous rent, not a current achieved rent or independent rental valuation.

• Additional auction charges may apply, including legal, search, transfer and seller-cost reimbursement charges.

• The £300,000 same-building sale is an unexplained outlier and is not relied upon.

• No inspection evidence or refurbishment cost estimate is supplied.

• Vacant possession creates letting, void and condition uncertainty.

• Finance, tax, management, maintenance and selling costs are excluded from the illustrative calculations.

Recommendation

Potentially suitable as a low-cost BTL or BRRR purchase only if the legal pack confirms an acceptable lease term, service-charge position and no material property restrictions. Bid no higher than £30,000 on the supplied evidence, subject to full due diligence.

Strategy Rating

Analysis Confidence

There is useful same-building sold evidence, a historic rent and a stated buyer administration charge, but unit-specific comparability, lease term, service charges, other auction costs, current rent evidence, condition and selling costs are missing.