31 May Street, South Shields, Tyne and Wear, NE33 3AJ

Description

An excellent opportunity to acquire a well-positioned upper floor flat with accommodation over two floors set in the popular residential location of South Shields, offering strong appeal to both buy-to-let investors and developers. The property requires a scheme of renovation to bring it up to a habitable standard.

Accommodation

Ground Floor: Front and rear entrances, both with staircases. First Floor: Landing, living room and kitchen/diner. Second Floor: Landing, two bedrooms and bathroom.

Location

Situated close to South Shields town centre, local amenities, transport links and the coastline. The property forms part of a traditional residential street comprising predominantly flats and period properties. South Shields benefits from road and Metro connections to Newcastle and Sunderland.

Tenure / Property Information

Investment Analysis

Sold evidence on May Street ranges from £40,000 to £80,000, with the two latest supplied sales at £80,000. A base GDV of £80,000 is supported as an upper-end local benchmark, but the evidence does not confirm comparable condition, accommodation or lease length. The 50-year remaining lease and required renovation introduce material uncertainty, so £58,000 is used as a cautious low scenario and £80,000 as the base/high scenario. This is an estimate, not a formal valuation.

Investment Snapshot

Strategy Recommendation

Proceed only subject to full legal, lease and building-cost due diligence. The low guide offers potential, but the unknown renovation budget, 50-year lease and unconfirmed property charges make the purchase unsuitable for a firm bid or refinance plan on the supplied evidence alone.

Works Required

Renovation to bring the flat to a habitable standard, including works to the living room, kitchen/diner, two bedrooms, bathroom, landings and access areas as required. The evidence does not specify defects, specification or contractor costs, so no refurbishment allowance is estimated.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £32,000 guide, the known £1,800 contract documentation fee gives £33,800 before refurbishment and any seller fees. A 75% refinance against the £80,000 base GDV would be £60,000, but cash left in cannot be calculated because renovation costs, service charges, ground rent and other completion costs are unknown. The 50-year lease may also affect refinanceability, subject to lender criteria not supplied.

Buy-to-Let Analysis

The supplied advertised asking rents are £340–£625 pcm, equivalent to £4,080–£7,500 annually. Against the £32,000 guide, this indicates a gross yield range of 12.75%–23.44%, before renovation, service charge, ground rent, management, voids, maintenance, finance and tax. The rent evidence is not specific to this property and is asking-rent evidence only; a reliable net yield cannot be established.

Flip Analysis

Using the £80,000 base GDV, a resale surplus cannot be calculated because the renovation cost, seller costs and any applicable special-condition charges are not provided. The local sales evidence supports the GDV benchmark but does not establish the final value after works or an appropriate selling allowance.

Investor Risks & Due Diligence

• Only 50 years remain on the lease, which may affect value, saleability and refinanceability.

• The property requires renovation to reach a habitable standard, but the scope and cost are unknown.

• Current ground rent and service charge are not provided.

• The supplied rents are advertised asking rents and are not confirmed achieved or passing rents.

• The two May Street sales at £80,000 contrast with lower sales at £40,000 and £58,000, indicating material local price variability.

• Additional seller fees may apply under the Special Conditions of Sale.

• Parking and heating details are not provided.

Recommendation

Proceed only subject to full legal, lease and building-cost due diligence. The low guide offers potential, but the unknown renovation budget, 50-year lease and unconfirmed property charges make the purchase unsuitable for a firm bid or refinance plan on the supplied evidence alone.

Strategy Rating

Analysis Confidence

There is useful local sold-price evidence and a guide price, but no refurbishment budget, current charges, seller fees, confirmed passing rent, detailed condition report or comparable lease information.